FEGLI

FEGLI provides TERM life insurance at group rates with payroll deductions available through your Federal agency. Benefits are paid if you or a family member die or if you become dismembered while insured.

It is important to note that FEGLI term life insurance goes up in cost as you age. It also can become unaffordable as you approach retirement, and the coverage decreases begins to decrease at retirement.

There are two types of FEGLI term life insurance:

Basic and Optional.

Basic: Equals your salary rounded up to the next even $1,000, plus $2,000; includes Accidental Death and Dismemberment coverage at no additional cost; plus “Extra Benefit” coverage for enrollees under age 45. The Extra Benefit doubles the amount payable for Basic if you are age 35 or younger when you die. This extra amount decreases each year by 10% until there is no “extra” coverage payable if you die at age 45 or older.

Optional: There are three types of Optional insurance: Option A-Standard ($10,000 of life insurance), Option B-Additional (you choose from 1 to 5 times your salary), and Option C– Family (coverage on your spouse and eligible dependent children).

Although FEGLI provides important protection for you and your family it is outdated. There are better options that are available to you as a Federal employee. Get in contact with us, so that we go over those options with you.