How FEGLI (Federal Life Insurance) Works

The Federal Employees’ Group Life Insurance program, or FEGLI, is federal life insurance coverage that is available to most Federal government employees – including those who are part-time and their families. The FEGLI basic coverage for those who are new employees will become effective on the first day that the individual is in a pay and duty status in an eligible work position.

Basic FEGLI Coverage

The basic FEGLI insurance that is offered through the Federal Employees Group Life Insurance program is Term life coverage. This is pure life insurance death benefit protection, with no cash value or savings build up within the policy. The FEGLI Rates are determined by using what is referred to as a “composite premium” structure, meaning that the basic premium amount that is charged through FEGLI is the same for all enrollees in the group, regardless of their health condition.

Those who are age 35 and younger are also covered by an additional amount of life insurance coverage called the Extra Benefit.

FEGLI Extra Benefit

The Extra Benefit coverage essentially doubles the death benefits of Basic FEGLI amount at no additional cost to these participants. For federal employees between the age of 35 and 45, the face amount of this Extra Benefit will decrease by 10 percent per year. Therefore, at age 45, the federal employee will only be covered by the Basic benefit amount of protection.

FEGLI At Retirement

Upon retirement, an enrollee in the FEGLI program may be allowed to take some of his or her FEGLI coverage with them. This is because some of the post-age-65 cost can be prefunded so that coverage may be continued for a certain amount of time at no out-of-pocket cost.