FEDERAL EMPLOYEE GROUP LIFE INSURANCE (FEGLI)

Established on August 29, 1954, the Federal Employees’ Group Life Insurance (FEGLI) Program, is one of the largest group life insurance programs in the world. It covers over 4 million federal employees, retirees, and many of their family members as well.

FEGLI provides group term life insurance, and most employees are eligible for FEGLI coverage. However, it does not build up any cash value or paid-up value. The program consists of Basic life insurance as well as three options. New Federal employees are automatically covered by Basic life insurance in most cases, and if so, then the payroll office deducts premiums from their paycheck unless the coverage is waived. In addition to the Basic, there are three other forms of optional insurance you can elect. However, you must have Basic insurance coverage in order to elect any of the other available options. Optional enrollment is not automatic, unlike Basic, so you must elect the additional options on your own.

When it comes to the cost of Basic insurance, that information is shared between you and the Government. The Government pays 1/3 of the total cost and you are set to cover the remaining 2/3. While age does not affect the cost of Basic insurance, it does affect the Optional insurance, which you will pay the full cost on.

Claims are paid and processed by The Office of Federal Employees’ Group Life Insurance (OFEGLI), which is a private entity contracted with the Federal Government.

*FEGLI PREMIUM RATES

BASIC LIFE INSURANCE (per $1,000)

Age Group Biweekly Monthly
Employee (All Ages) $0.1500 $0.3250

OPTION A (For $10,000 of insurance)

Age Group Biweekly Monthly
Under 35 $0.20 $0.43
35-39 $0.30 $0.65
40-44 $0.40 $0.87
45-49 $0.70 $1.52
50-54 $1.10 $2.38
55-59 $2.00 $4.33
60+ $6.00 $13.00

OPTION B (per $1,000 of insurance)

Age Group Biweekly Monthly, per $1,000
Under 35 $0.02 $0.043
35-39 $0.03 $0.065
40-44 $0.04 $0.087
45-49 $0.07 $0.152
50-54 $0.11 $0.238
55-59 $0.20 $0.433
60-64 $0.44 $0.953
65-69 $0.54 $1.170
70-74 $0.96 $2.080
75-79 $1.80 $3.900
80 and over $2.64 $5.720

OPTION C (per multiple of insurance)

Age Group Biweekly Monthly, per multiple
Under 35 $0.22 $0.48
35-39 $0.27 $0.59
40-44 $0.41 $0.89
45-49 $0.59 $1.28
50-54 $0.92 $1.99
55-59 $1.48 $3.21
60-64 $2.70 $5.85
65-69 $3.14 $6.80
70-74 $3.83 $8.30
75-79 $5.26 $11.40
80 and over $7.20 $15.50

*Rates May Change in the Future

Source: https://www.opm.gov/retirement-services/publications-forms/benefits-administration-letters/2015/15-203a1.pdf