Key Takeaways
- FEGLI Option C provides group life insurance for federal employees’ eligible family members on an elective basis.
- Understanding enrollment rules and coverage details can help ensure your loved ones are properly protected within federal guidelines.
If you’re a current or retired federal employee, making sense of the Federal Employees’ Group Life Insurance (FEGLI) program—especially Option C—can help you provide important protection for your loved ones. Here, you’ll find a clear, practical overview of Option C: who is eligible, how coverage works, the main rules, and what to expect during and after federal service.
What Is FEGLI Option C?
Coverage overview
FEGLI Option C is an elective part of the Federal Employees’ Group Life Insurance program designed specifically to cover the lives of an employee’s eligible family members. Unlike Basic FEGLI, which covers the employee themselves, Option C provides group life insurance in the event of the death of qualifying dependents. The Option C benefit pays a lump sum to the federal employee if a covered family member passes away.
Who is covered under Option C
Coverage under Option C extends to an employee’s spouse and eligible dependent children. Each qualifying dependent is covered separately under the same election. This arrangement means that if multiple covered family members pass away, the employee may receive a separate payment for each loss, according to their chosen level of coverage.
Who Qualifies for Option C Coverage?
Federal employee eligibility
You may select and carry FEGLI Option C if you are a federal employee who is eligible to enroll in the Federal Employees’ Group Life Insurance program. Generally, this includes most permanent, career, or career-conditional federal civilian employees. Temporary employees with at least one year of service may also be eligible, depending on appointment type and agency policy. Part-time federal employees can also qualify, provided they are eligible for FEGLI.
Dependent qualification details
Qualifying dependents for FEGLI Option C are strictly defined:
- Spouse: Your current legal spouse is always eligible for Option C coverage. A former spouse is not covered under this plan.
- Dependent children: Your unmarried dependent children, up to age 22, are eligible unless they are disabled before age 22 and remain incapable of self-support, in which case coverage may continue for the duration of their disability. Dependent children include biological children, adopted children, stepchildren, and foster children living with you in a regular parent-child relationship, as long as they meet the eligibility requirements.
How Does FEGLI Option C Work?
Enrollment process explained
If you are opting for Option C, you must actively elect this coverage—it is not included automatically with basic coverage. Enrollment commonly occurs within your initial 60-day new employee window. Alternatively, you can enroll during an open season (which is not regularly scheduled), or if you experience a qualifying life event (such as marriage, birth, or adoption). If you decline Option C during your initial eligibility, you may only elect coverage later under these special circumstances.
To enroll, you submit Standard Form 2817 (Life Insurance Election) to your agency’s human resources office, indicating your choice and the number of multiples you wish to carry.
Coverage amount choices
You may elect Option C in 1 to 5 multiples. Each “multiple” equals $5,000 of coverage for a spouse and $2,500 for each eligible child; you choose the number of multiples that fits your needs. For example, selecting three multiples means $15,000 coverage for your spouse and $7,500 per child. Premiums for Option C are based on your age and the number of multiples elected, but the structure and actual cost of premiums are set by government guidelines and periodically updated.
What Are the Key FEGLI Option C Rules?
Enrollment periods and deadlines
You have a limited window to enroll in FEGLI Option C: typically, 60 days following your entry into service, during qualifying life events, or in rare government-announced open seasons. Late enrollment is not allowed unless you meet these special circumstances. Missing enrollment windows generally means you will not be able to add Option C later without a qualifying event.
Rules for changing or canceling coverage
You can increase, decrease, or cancel Option C coverage under specific permitted circumstances. Decreases or cancellation can be requested at any time, while increases usually require an open season or qualifying life event. If you wish to make these changes, you’ll need to submit an updated Standard Form 2817 to your human resources office. Remember, once canceled, re-enrollment is subject to the same limited eligibility triggers.
How Are Claims Processed?
Steps to file a claim
In the unfortunate event of a covered family member’s passing, you must file a claim to receive Option C benefits. Start by notifying your agency’s benefits or HR office as soon as possible. The agency will provide a claims package and guidance on submission. As the insured employee, you are considered the beneficiary for any Option C claims opened on your dependents.
Supporting documents needed
Processing an Option C claim typically requires:
- A completed claim form (as provided in the claims package)
- An official certified copy of the dependent’s death certificate
- Documentation to confirm your covered relationship (such as a marriage certificate for a spouse or birth/adoption records for a child)
Accurate and timely documentation helps facilitate the process.
Are There Common Misunderstandings?
Difference from basic FEGLI
A frequent point of confusion is the distinction between FEGLI Basic coverage and Option C. Basic FEGLI insures your own life; Option C extends group life insurance coverage to your family members. The covered amounts and eligibility rules differ, as does the structure for payment of claims.
Typical misconceptions explained
Some think Option C automatically covers family members, but it is not included by default—you must elect it specifically. Also, Option C coverage is not granted retroactively; you need to be enrolled and current with premiums when the loss occurs. Another misconception is that grown children or ex-spouses remain eligible—federal rules do not permit this under Option C.
What Happens to Option C in Retirement?
Keeping coverage after leaving service
If you retire from federal service and are eligible to continue FEGLI coverage (typically with five years of continuous participation immediately before retirement), you can keep Option C into retirement. You must select whether to continue coverage or allow it to lapse at that time. If you leave federal service before retiring, most coverage—including Option C—ends, except under certain entitlement or conversion conditions.
Premiums and benefit changes in retirement
Premiums for Option C continue after retirement as long as you maintain the coverage. The cost per multiple may increase in five-year age bands as set by federal regulations. Additionally, at age 65 or upon retirement (if later), you can choose to reduce Option C coverage gradually, which may result in lower premiums, or keep full multiples (with premium payments continuing for the full coverage).
