Federal Life Insurance (FEGLI)
Understand your FEGLI options, examine age-banded rate increases, and compare federal group coverage against private alternatives to protect your family's future.
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What is the Federal Employees' Group Life Insurance (FEGLI)?
A group term policy administered by OPM providing basic and optional life insurance.
The Federal Employees' Group Life Insurance (FEGLI) program is the largest group life insurance program in the world, covering over 4 million federal employees, retirees, and family members. While FEGLI provides guaranteed coverage with no medical underwriting upon entering federal service, its costs increase dramatically as you age.
Many federal employees do not realize that Option B premiums double every 5 years beginning at age 45. By retirement age, maintaining full FEGLI coverage often becomes prohibitively expensive, forcing retirees to reduce coverage right when their families need protection most. Our advisors help you audit your coverage to secure guaranteed, affordable protection.
Basic Insurance
Equal to your annual salary rounded up to the nearest thousand plus $2,000. The government pays one-third of the premium cost.
Option A (Standard)
Provides an additional flat $10,000 of death benefit coverage for your designated beneficiaries.
Option B (Multiples of Salary)
Allows you to elect 1, 2, 3, 4, or 5 multiples of your annual basic pay. Crucial to monitor due to steep age-band rate increases.
Option C (Family Coverage)
Covers your spouse (up to 5 multiples of $5,000 = $25,000) and eligible dependent children (up to 5 multiples of $2,500 = $12,500).
Are You Paying Too Much for FEGLI as You Age?
Discover how supplementing or replacing Option B with private coverage can save tens of thousands in retirement.
Coverage Tiers & Options
Understand the core mechanics and cost factors of your federal group term life insurance.
Basic Coverage
Coverage
Annual Base Salary rounded up + $2,000
Cost Structure
Government pays 33%, employee pays 67% ($0.16 per $1,000 bi-weekly)
Advisor Note:
Generally cost-effective to maintain throughout active service.
Option A (Standard)
Coverage
Flat $10,000 coverage
Cost Structure
Employee pays 100% based on age band
Advisor Note:
Low-cost supplementary coverage for immediate funeral expenses.
Option B (Additional)
Coverage
1x to 5x Annual Basic Pay
Cost Structure
Employee pays 100%. Premiums surge every 5 years (doubling at 50, 55, 60)
Advisor Note:
Evaluate private term or permanent coverage before age 50 to lock in lower rates.
Option C (Family)
Coverage
1x to 5x multiples ($5k spouse / $2.5k child per unit)
Cost Structure
Flat rate per unit covering all eligible family members
Advisor Note:
Affordable family protection while children are dependents.
Estimate Your FEGLI Costs Across Age Brackets
FEGLI Option B rates double every 5 years starting at age 45. Use our free interactive FEGLI calculator to project exactly what your premiums will look like at ages 50, 55, 60, and into retirement.
A federal employee with $100,000 salary carrying 5x Option B ($500k) pays $39/mo at age 40, which escalates to $216/mo at age 55 and $476/mo at age 60.
Post-Retirement Reduction Options (FE-2818)
Upon retiring from federal service, you must declare how your Basic FEGLI coverage will be handled starting at age 65.
75% Reduction (Standard)
Coverage reduces by 2% per month starting at age 65 until it reaches 25% of the original value. Premium is free after age 65.
50% Reduction
Coverage reduces by 1% per month starting at age 65 until it reaches 50% of the original value. Requires ongoing premium payments.
No Reduction
Coverage stays at 100% for life. Requires substantial, ongoing premium payments for the remainder of your life.
Want to Discuss?
Call us today to discuss your federal options or schedule a one-on-one session with an advisor.
Frequently Asked Questions
Clear answers to the most common questions federal employees ask regarding this service.
Yes, provided you satisfy the '5-year rule': You must have been enrolled in FEGLI for the 5 consecutive years of service immediately preceding your retirement date (or for all periods of service during which you were eligible).
FEGLI is group term insurance without cash value accumulation. Rates are grouped into 5-year age brackets (e.g. 45-49, 50-54, 55-59, 60-64). Because mortality risk rises with age, the rate per $1,000 increases sharply at every bracket, often making it unaffordable after age 55.
Yes. Many healthy federal employees in their 40s and 50s can qualify for individual private level-term or permanent life insurance policies with locked-in, level premiums that save thousands of dollars compared to FEGLI Option B.
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Schedule a consultation with our team and take the next step toward a more secure future.