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Federal Employees Group Life Insurance Program (FEGLI)
The Federal Government
established the Federal Employees' Group Life Insurance (FEGLI) Program on August 29, 1954.
It is the largest group life insurance program in the world, covering over 4 million
Federal employees and retirees, as well as many of their family members. FEGLI provides
group term life insurance. As such, it does not build up any cash value or paid-up value.
It consists of Basic life insurance coverage and three options.
In most cases, if you are a new Federal employee, you are automatically covered by Basic life insurance and your payroll
office deducts premiums from your paycheck unless you waive the coverage.
Basic
insurance is based on your annual basic rate of pay, rounded up to the nearest $1,000, plus
$2,000. The cost of Basic insurance is shared between you and the Government. You pay 2/3 of
the total cost and the Government pays 1/3. Your age does not affect the cost of Basic
insurance.
In addition to the Basic, there are three forms of Optional insurance that you can elect.
You must have Basic insurance in order to elect any of the options. Unlike Basic,
enrollment in Optional insurance is not automatic -- you must take action to elect the options.
You pay the full cost of Optional insurance, and the cost depends on your age. Option A
insurance provides $10,000 of additional coverage. Option B insurance coverage comes
in 1, 2, 3, 4, or 5 multiples of your annual basic rate of pay. Option C coverage
insures your spouse for up to 5 multiples of $5,000 and eligible children for up
to 5 multiples of $2,500.
There are also additional automatic benefits under the FEGLI Program. For covered employees, extra
coverage is provided to participants under age 45. Also, accidental death and dismemberment
coverage is an automatic part of Basic and Option A insurance for employees. Neither represents
an additional cost to employees.
The Office of Federal Employees' Group Life Insurance (OFEGLI), which is a private entity
that has a contract with the Federal Government, processes and pays claims under the FEGLI Program.
Unless your position is excluded from coverage by law or regulation, you are
automatically enrolled in Basic insurance when you begin Federal Service. If you
don't want this coverage, you must either waive it when you first become eligible for
coverage or cancel it. You must specifically elect the types of Optional insurance you wish
to carry within 31 days of becoming eligible.
Outside of your initial opportunity to enroll, or a qualifying life event, your
servicing personnel office determines whether you are eligible to elect or increase your
life insurance coverage.
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