FEGLI FAQs: Answers for Federal Employees on Life Insurance & Retirement

FEGLI FAQs: Federal Life Insurance & Retirement

Key Takeaways:

• Understand how FEGLI works before and after retirement, including your options and requirements.
• For the most accurate and current FEGLI information, rely on official government resources.

Federal Employees’ Group Life Insurance, or FEGLI, remains a foundational benefit for those working in or retired from U.S. federal service. Many employees and retirees have questions about how FEGLI fits into their benefits picture, how it interacts with retirement, and what options are available. This FAQ addresses these questions using the most current federal rules and is for educational purposes only. All content reflects guidance from official sources such as the U.S. Office of Personnel Management (OPM) as of 2026.

What Is FEGLI and Who Is Eligible?

FEGLI stands for Federal Employees’ Group Life Insurance and is the largest group life insurance program in the United States. If you are a federal employee working in a qualifying appointment, you are typically eligible for FEGLI coverage. Most new federal employees are automatically enrolled in Basic FEGLI coverage unless they choose to opt out.

Eligibility generally includes most full-time and some part-time federal employees, certain postal workers, and specific annuitants or retirees who meet service requirements. Temporary, seasonal, or intermittent employees may have limited or no eligibility. You can confirm your status through your agency’s human resources office or by reviewing your appointment documents.

How Does FEGLI Work in Retirement?

You can continue FEGLI coverage into retirement if you meet specific requirements at the time you separate from service. The most important criteria include:

• You must have had FEGLI coverage for the five years immediately before retirement, or for the entire period in which the coverage was available, if less than five years.
• You must retire on an immediate annuity.

When you retire, you’ll be given choices about how much of your FEGLI Basic insurance you wish to carry into retirement, as well as options for continuing optional insurance. Premiums for coverage often change after retirement. For example, the cost for optional coverage typically increases with age, while some reductions in Basic coverage can allow for lower or no premiums.

The process is administered through OPM, and you will make your elections by completing official forms provided as part of your retirement paperwork.

What FEGLI Options Can You Choose?

FEGLI offers four main types of coverage:

• Basic Insurance: Provided automatically to eligible employees unless waived. It is the foundation of the FEGLI program.
• Option A – Standard: Offers an additional set coverage amount.
• Option B – Additional: Provides multiples of your annual pay (up to five times), allowing for higher levels of coverage.
• Option C – Family: Lets you insure eligible family members, like a spouse and dependent children.

You may elect optional insurance when you are first eligible, during a rare FEGLI open season, or after qualifying life events such as marriage, divorce, or the birth of a child. Changes outside of these periods typically require evidence of insurability and the completion of designated OPM forms.

Can FEGLI Be Changed After Hiring?

Yes, you have options to change your FEGLI coverage after your initial enrollment. Here’s how:

• Increase Coverage: During a FEGLI open season, or after a qualifying life event (e.g., marriage, divorce, birth/adoption of a child), or by providing satisfactory medical information.
• Decrease or Cancel Coverage: You may reduce or cancel your FEGLI coverages at any time by submitting Standard Form 2817 to your human resources office or payroll office. Some reductions are permanent, so careful consideration is recommended.

Be aware that open seasons for FEGLI are infrequent and announced by OPM in advance. Most changes outside these events rely on strict eligibility and form completion.

What Happens to FEGLI If You Leave Federal Service?

The outcome for your FEGLI coverage depends on the circumstances:

• Resignation or Separation (Not Retiring): Your FEGLI coverage generally ends 31 days after you separate unless you qualify for conversion to a private, individual policy (with no medical exam required). You will receive a conversion notice explaining your options.
• Retirement: If you retire with an immediate annuity and meet eligibility criteria, you may elect to continue FEGLI coverage, as described earlier.
• Portability: Currently, FEGLI does not offer a portability feature that allows you to take your group coverage with you unchanged; only conversion to an individual policy is available.

Always confirm your options with OPM notices or your agency’s benefits office before separating.

Are There FEGLI Benefits for Beneficiaries?

Yes, designated beneficiaries can receive FEGLI benefits upon your death. Beneficiaries must file a claim using OPM’s forms and provide an official death certificate and other required documentation.

The steps generally include:

1. Locating the FEGLI claim form (SF 2821 or equivalent) from the OPM website.
2. Submitting all completed paperwork by mail as directed.
3. Awaiting verification and processing.

All FEGLI payments are made directly to the named beneficiaries listed on your file. If no living beneficiaries are listed, OPM will pay according to the federal order of precedence.

How Does FEGLI Compare to Private Life Insurance?

FEGLI is a group term life insurance program sponsored by the federal government for its employees and retirees. Unlike many private insurance policies, FEGLI:

• Has no medical exam requirement for Basic coverage.
• Is group-based, so rates and eligibility are determined by federal service, not individual risk.
• Offers coverage that may change or terminate upon retirement or separation, unless you meet eligibility for ongoing participation.
• Does not provide cash value or an investment component—FEGLI is pure term insurance.
• Premiums can increase with age for some optional coverages but are set by federal rules.

Private policies, in contrast, may provide a broader array of features, cash values, or options for portability and customization. Always rely on official, government sources for specifics about FEGLI.

What Should You Consider When Reviewing FEGLI Decisions?

You’ll want to take note of several key points when deciding whether to keep, change, or cancel your FEGLI coverage:

• Personal Needs: Assess your family’s potential need for financial protection.
• Cost Changes: Premiums, especially for optional coverage, tend to rise as you age or retire.
• Coverage Levels: Review what is currently in force and whether that fits your situation.
• Health Factors: While FEGLI doesn’t require a medical exam for Basic coverage, changing coverage later may involve medical qualification.
• Ongoing Eligibility: Coverage continuation depends on your retirement or separation scenario. Confirm requirements before making changes.

Review all information with care and read current OPM literature before making lasting decisions.

Where to Find Official FEGLI Information?

For up-to-date, detailed explanations and official publications about FEGLI, always visit the U.S. Office of Personnel Management FEGLI web page (www.opm.gov/insure/life) or consult the FEGLI Handbook. Official resources should be your first stop when researching your coverage or planning for retirement.

FAQ (Wrap-Up Section)

• Can you reinstate FEGLI after cancelling? Generally, once you cancel FEGLI, reinstatement is only possible under limited circumstances such as a future open season or qualifying life event.
• Does FEGLI have cash value or an investment feature? No, FEGLI is term life insurance with no cash value component.
• How often do rules and rates change? OPM periodically reviews and updates FEGLI rates and rules; check the official OPM website for announcements.
• What paperwork is required to claim a FEGLI benefit? Beneficiaries must complete designated FEGLI claim forms and provide a copy of the official death certificate.
• Where can you get updates on program changes? All updates appear on the official OPM FEGLI program website and in its published materials.

Summary: Key Points on FEGLI & Retirement

FEGLI is a federal employee benefit offering group term life insurance throughout your career and into retirement, if eligibility rules are met. Understanding your options, keeping your beneficiary designations current, and regularly reviewing your coverage are vital steps. For the most accurate, timely, and neutral information, always consult OPM resources and stay up to date on any program rule changes.