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Federal Life Insurance

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Questions about Federal Life Insurance?

Through the Federal Employees’ Group Life Insurance (FEGLI) Program, the Federal Government offers you an opportunity to participate in this group plan which offers low rates and the convenience of payment through payroll deduction.

Federal Life Insurance

The Federal Employees’ Group Life Insurance (FEGLI) is the largest group life insurance program in the world, covering over 4 million Federal employees and retirees, as well as many of their family members.

FEGLI is term insurance and does not build up any cash value or paid-up value, therefore you cannot take loans or “cash out” your policy because there is no cash value.

FEGLI consists of Basic life insurance coverage and three options. In most cases, if you are a new Federal employee, you are automatically covered by Basic life insurance and your payroll office deducts premiums from your paycheck unless you waive the coverage. In addition to the Basic, there are three forms of Optional insurance you can elect. You must have Basic insurance in order to elect any of the options.

The cost of Basic insurance is shared between you and the Government. You pay 2/3 of the total cost and the Government pays 1/3. Your age does not affect the cost of Basic insurance. You pay the full cost of Optional insurance, and the cost depends on your age.

 

To learn more about FEGLI, download and read the two brochures below.

Life Insurance Overview

FEGLI Handbook

 

FEGLI Calculator

The FEGLI Calculator allows you to determine the face value of various combinations of FEGLI coverage.

 

Can I be turned down for FEGLI?

The short answer is yes, regardless of the company and policy you apply for. Life insurance policies are medically underwritten and there is a possibility that you may not qualify for coverage.

We recommend filling out a confidential medical history form so we can call the underwriters who can help narrow down your best option. Click to download the Medical History form.

 

I am going to retire soon. What are the requirements to continue health benefits into retirement?

To continue your health benefits enrollment into retirement, you must: (1) have retired on an immediate annuity (that is, an annuity which begins to accrue no later than one month after the date of your final separation); and (2) have been continuously enrolled (or covered as a family member) in any FEHB Program plan (not necessarily the same plan) for the five years of service immediately preceding retirement, or if less than five years, for all service since your first opportunity to enroll.

 

Will my premiums increase once I retire?

No, you will pay the same premium as you paid while you were an employee. However, annuitants are paid on a monthly basis so you will pay them at the monthly rate. You may see an increase if you are employed by an agency, such as the Post Office, that contributes additional money towards the total premium. Retirees receive the same government contribution as most Federal employees.

 

What will happen to my FEGLI Basic life insurance when I retire?

The requirements for continuing your FEGLI life insurance into retirement are explained in the FEGLI Handbook. If you meet the requirements, you must choose what will happen to your Basic when you turn 65 or retire, whichever is later.  Your choices are:

  • 75% Reduction: your Basic coverage reduces 2% each month until it reaches 25% of its pre-reduction amount.  Your Basic is free (no premium) once the reductions begin and remains free until your death.
  • 50% Reduction: your Basic coverage reduces 1% each month until it reaches 50% of its pre-reduction amount.  There is an extra premium for this choice that you will continue to pay until you die, switch to 75% reduction, or cancel Basic.
  • No Reduction: your Basic coverage does not reduce.  You maintain the same amount of Basic coverage you had when you stopped being enrolled as an employee.  There is a larger extra premium for this choice that you will continue to pay until you die, switch to 75% Reduction, or cancel Basic.

If you select 75% or 50%, the reduction begins the second month after your 65th birthday, or the second month after you retire, whichever is later. To see the different premiums for the different choices, visit Premiums for Annuitants. To make your choice, submit SF 2818 to your human resources office shortly before you retire. If you do not turn in the form, you will be defaulted to 75% Reduction.

 

Where can I get more information about FEGLI life insurance?

You can read the FEGLI Program Booklet for Federal Employees or for Postal employees) and review the FEGLI Handbook. Information on current premiums is available here. The FEGLI Calculator can help you figure out your coverage and premiums. Contact your human resources office if you have additional questions.