FEGLI
Q – What type of Insurance is FEGLI?
Q – What is the value of FEGLI?
Q – What are the four parts of FEGLI?
Q – What is the amount of the Basic FEGLI?
Q – What is the value of Option A?
Q – What is the value of Option B?
Q – What is the value of Option C?
Q – What are some features of FEGLI that make it different from other life insurance?
Q – What does accidental death and dismemberment provide?
Q – I am ready to retire, can I carry all of my FEGLI into retirement?
Q – What about the Optional Insurance?
Q – Will it cost me the same as I am paying now?
Q – So what reduction options do I have to choose from?
Q – If I carry the Option A into retirement do I have reduction elections?
Q – What do I pay for Option A?
Q – What are my choices for Option B?
Q – What does it cost to carry Option B as no reduction?
Q – What do I need to know about Option C?
Q – What type of Insurance is FEGLI?
A – FEGLI is decreasing term insurance. It provides a lot of coverage for a small premium when you are under age 35.
Q – What is the value of FEGLI?
A – The FEGLI program has four parts and two of them allow for multiples of coverage.
Q – What are the four parts of FEGLI?
The Basic FEGLI
Option A Standard Option
Option B Additional Option
Option C Family Option
Q – What is the amount of the Basic FEGLI?
A – The Basic FEGLI is equal to your annual rate of pay rounded to the next $1,000 plus $2,000. As your salary increases, so does the value of your Basic FEGLI. However, upon retirement, the value of the Basic FEGLI is locked in at your annual rate of pay rounded up to the next thousand plus $2,000.
Q – What is the value of Option A?
A – Option A is an additional $10,000.
Q – What is the value of Option B?
A – Option B is 1 to 5 times your base pay rounded to the next $1,000.
Q – What is the value of Option C?
A – Option C is Family Life Insurance, it would pay you if your spouse or eligible child predeceased you. You can elect 1 to 5 multiples of the $5,000 coverage for your spouse (up to $25,000) and the $2,500 (up to $12,500) for each eligible child.
Q – What are some features of FEGLI that make it different from other life insurance?
• First, the government pays 1/3 of the cost of the Basic and you pay 2/3 of the cost;
• It is decreasing term insurance so it does not build cash value;
• It is double indemnity, meaning that when you are under age 35, the value is doubled. The doubling decreases by 0.10% per year until at age 45;
• There is accidental death and dismemberment coverage as an automatic feature of the Basic and Option A; and
• There is no medical exam if you enroll during an open season or upon being hired.
Q – What does accidental death and dismemberment provide?
A – Accidental death and dismemberment benefits are payable when you sustain an injury by accidental means, and within 90 days, you die or lose a limb or eyesight. Under the Basic insurance, accidental death benefits equals one multiple of your Basic FEGLI without any age multiplication factor.
Accidental Dismemberment benefits are equal to one-half of your Basic insurance amount for the loss of one limb or sight in one eye. Option A, accidental death benefits, are equal to $10,000 and one-half for the loss of one limb or sight in one eye.
Q – I am ready to retire, can I carry all of my FEGLI into retirement?
A – If you meet the following requirements, you can continue your Basic FEGLI:
• Retired on an immediate annuity (commencing within 31 days of separation)
• Insured on date of retirement; and
• Covered by Basic FEGLI for the 5 years of service immediately preceding retirement or since the first opportunity to enroll.
Q – What about the Optional Insurance?
A – You must have the level of FEGLI that you wish to carry into retirement for 5 full years immediately preceding retirement or from first opportunity to have enrolled in order to continue the coverage into retirement.
Q – Will it cost me the same as I am paying now?
A – The answer for the Basic is that it will depend on your age and which reduction option you have elected. On the Optional coverage, your age affects the premium.
Q – So what reduction options do I have to choose from?
• 75 percent reduction: The face value of the Basic Life Insurance decreases by 2 percent per month with the reduction beginning at the later of age 65 or retirement. Ultimately, the face value of the Basic Life Insurance policy will decrease to 25 percent of its original value.
• 50 percent reduction: The face value of the Basic Life Insurance decreases by 1 percent per month with the reduction beginning at the later of age 65 or retirement. Ultimately, the face value of the Basic Life Insurance policy will decrease to 50 percent of its original value.
• No reduction: The face value of the Basic Life Insurance does not reduce.
A – The cost of carrying the FEGLI into retirement depends on which option you choose and your age.
Premium From Retirement Until Age 65 and
Option Until Age 65 and Thereafter if Retired
Option Premium From Premium
Retirement Age 65 and
Until Age 65 Thereafter if Retired
75% reduction $.3250 per 1,000 free
per month
50% reduction $.9250 per 1,000 $.60 per 1,000
per month per month
No reduction $2.1550 per 1,000 $1.83 per 1,000
per month per month
NOTE: The 50% reduction premium age 65 and thereafter is always computed on the face value of the Basic FEGLI at retirement, not the decreased value.
Q – If I carry the Option A into retirement do I have reduction elections?
A – No, Option A, if carried into retirement, is 75% decreasing term insurance. You have the $10,000 value until age 65, at 65 it begins to decrease by 2% per month until it is worth $2,500. It only takes 37 ½ months to decrease from $10,000 to $2,500.
Q – What do I pay for Option A?
A – Cost determined by age of employee/retiree.
Biweekly Rate Monthly Rate
Under 35 $0.30 $ 0.65
35-39 $0.40 $ 0.87
40-44 $0.60 $ 1.30
45-49 $0.90 $ 1.95
50-54 $1.40 $ 3.03
55-59 $2.70 $ 5.85
60-64 $6.00 $13.00
65-69 $6.00 $13.00
70 and over $6.00 $13.00
Q – What are my choices for Option B?
A – You can drop or decrease the number of multiples of Option B at anytime. If you wish to carry any multiple of option B into retirement, you must elect either full reduction or no reduction.
Full reduction results in a 2% per month reduction beginning the first day of the second month after you reach age 65 or at retirement if later until the coverage ends (50 months). There is no premium from age 65 if retired and full reduction is elected.
Q – What does it cost to carry Option B as no reduction?
A – Cost determined by age of employee/retiree per thousand.
Biweekly Rate Monthly Rate
Under 35 $0.03 $0.070
35-39 $0.04 $0.090
40-44 $0.06 $0.130
45-49 $0.09 $0.195
50-54 $0.14 $0.303
55-59 $0.28 $0.607
60-64 $0.60 $1.300
65-69 $0.72 $1.560
70-74 $1.20 $2.600
75-79 $1.80 $3.900
80 and over $2.40 $5.200
For example: If your annual basic pay rounded to the next higher $1,000 is $120,000 and you have 5 multiples, you will have $600,000 worth of life insurance.
At age 45, it is costing $117.00 per month
At age 55, it is costing $364.20 per month
At age 65, it is costing $936.00 per month
At age 75, it is costing $2,340.00 per month
At age 80, it is costing $3,120.00 per month
Q – What do I need to know about Option C?
A – It is family insurance, which would pay you if your spouse or child(ren) predeceased you depending on the number of multiples you have.
At retirement, you must elect full reduction or no reduction on Option C. There is no premium from age 65 if retired and full reduction is elected.
A – Per multiple, cost is determined by the age of the employee/retiree not by the age or the number of family members.
Biweekly Rate Monthly Rate
Under 35 $0.27 $ 0.59
35-39 $0.34 $ 0.74
40-44 $0.46 $ 1.00
45-49 $0.60 $ 1.30
50-54 $0.90 $ 1.95
55-59 $1.45 $ 3.14
60-64 $2.60 $ 5.63
65-69 $3.00 $ 6.50
70-74 $3.40 $ 7.37
75-79 $4.50 $ 9.75
80 and over $6.00 $13.00
Remember, the premium is based on your age and the number of multiples you have elected, not the number of eligible family members or their ages.
Back to top
