Federal Employees Group Life Insurance (FEGLI): Everything You Should Know
Filing a Federal Employees' Group Life Insurance (FEGLI) Claim
In the event of the death or dismemberment of a Federal employee, or the death of an eligible family member, here's how to navigate your FEGLI claim:
First, verify coverage: Start by contacting the deceased employee's agency. They manage FEGLI records and can confirm coverage.
For retirees or their families: If the deceased was a retiree or their family member, reach out to OPM directly at 1-888-767-6738. They'll handle claim forms and coverage details. Expedited claims in emergencies: Rest assured, the FEGLI program has procedures for emergencies. If one arises, they'll utilize these established methods to expedite claims and ensure prompt payment.
Filing your claim: You have two options:
Phone: For the fastest service, call the Office of Federal Employees' Group Life Insurance (OFEGLI) at 1-800-633-4542. Mention the emergency during the call. Specially trained personnel will take your claim over the phone and manage it through the expedited process.
Paper: Alternatively, you can submit a paper claim form. Find it on the Healthcare & Insurance website or any Federal agency. Fill it out and mail it promptly to the address on the form. Don't wait for a death certificate or agency certification.
Remember, the goal is to get your claim processed quickly and efficiently. Choose the method that best suits your situation and the urgency of your needs.
What is this program?
Looking for valuable life insurance benefits as a federal employee? Enter the Federal Employees' Group Life Insurance (FEGLI) Program, established in 1954 to offer you just that. FEGLI caters to you, the employee, along with eligible retirees and your family, giving you access to two types of coverage: Basic and Optional.
Basic insurance kicks in automatically for eligible employees, providing coverage equal to your annual salary rounded up to the nearest thousand dollars, plus an additional $2,000. But that's not all! You can further tailor your protection with three optional plans:
- Option A-Standard: Get an extra $10,000 of coverage for yourself.
- Option B-Additional: Boost your coverage by one to five times your salary for added peace of mind.
- Option C-Family: Extend protection to your loved ones with one to five multiples of coverage. Each multiple mean $5,000 for your spouse and $2,500 for each eligible child (usually unmarried dependents under 22).
Remember, choosing the right coverage is key. So, explore your options and ensure you and your family are taken care of under the reliable umbrella of FEGLI.
FEGLI Coverage
Most Federal employees automatically get Basic Life Insurance under FEGLI, unless they decline it. This coverage equals your annual salary rounded up to the nearest thousand dollars, plus $2,000, or a minimum of $10,000, whichever is higher. And there's a bonus for younger employees! If you're under 45, you get double the Basic Life Insurance benefits until age 36, with the amount gradually decreasing until the extra coverage ends at age 45.
On top of Basic Life Insurance, some employees might also have optional FEGLI coverage. This can include an additional $10,000 with double benefit in case of accidental death (Option A - Standard), or multiples of your salary (Option B - Additional). For your family, Option C - Family provides coverage for each member, ranging from one to five times the basic amount: $5,000 for your spouse and $2,500 per eligible child.
Remember, retired Federal employees may continue FEGLI coverage if they meet the retirement eligibility requirements. Contact the OPM Retirement Office to check if a retiree has FEGLI.
Now, who gets the life insurance payout? That follows a specific order:
- Designated beneficiary: The person you officially named to receive the benefits. Surviving spouse: If no beneficiary is named, your husband or wife inherits the insurance.
- Children: If there's no spouse, your children (including the descendants of any deceased children) will share the payout equally.
- Surviving parents: In the absence of a spouse or children, your parents come next in line.
- Estate executor or administrator: If you haven't designated a beneficiary or have no remaining family, the insurance goes to the person legally appointed to handle your estate.
- Next of kin: As a last resort, the insurance payout falls to your closest living relatives according to the laws of your state.
Note that exceptions can occur if the insurance is assigned to someone or if a court order specifies a different beneficiary order.
Who is eligible for this program?
As a Federal employee, you are eligible to have FEGLI coverage, unless your position is excluded by law or regulation. Your Federal agency applies these rules and determines your eligibility. However, there are numerous special provisions for people in part-time or intermittent employment, temporary appointments, and specifically named positions.
For Federal employees, the chapter titled "Eligibility" in the FEGLI Handbook explains these and other eligibility provisions.
Most employees are eligible for Federal Employees Group Life Insurance (FEGLI) coverage, which 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 premiums are deducted from your paycheck unless you waive the coverage. In addition to the Basic, there are three forms of Optional insurance you can elect. However, you must have Basic insurance to elect any of the options. Unlike Basic enrollment, Optional insurance is not automatic -- you must take action to elect the options. You must specifically elect the types of optional insurance you wish to carry within 31 days of becoming eligible.
FEGLI is not part of the annual Federal Benefit Open Season. Outside of an open season, eligible employees can enroll or increase their FEGLI coverage by taking a physical exam or with a Qualifying Life Event. For more information about the FEGLI physical exam, please see SF 2822 (PDF file).
FEGLI Accidental Death and Dismemberment Benefits (Employees Only)
Unless your position has a legal or regulatory barrier, you, as a Federal employee, are eligible for FEGLI, a group-term life insurance program. However, the nitty-gritty of eligibility depends on your agency's application of the rules. Don't worry, though! For special cases like part-time work, temporary appointments, or specific positions, there are numerous provisions laid out in the FEGLI Handbook's "Eligibility" chapter.
Understanding Your Coverage:
FEGLI offers basic life insurance without any cash value build-up. Most new employees automatically get this Basic coverage, with premiums deducted from their paychecks unless they opt-out.
But hold on, there's more! Three Optional insurance forms are available if you crave additional protection. Remember, Basic is a prerequisite for any Optional additions, and unlike automatic Basic enrollment, you'll need to actively choose the Optional coverage you want within 31 days of eligibility.
Enrollment and Beyond
Unlike the annual Federal Benefit Open Season, FEGLI enrollment happens differently. Outside of that season, you can join or boost your FEGLI coverage through a physical exam or a Qualifying Life Event. And if you're curious about the exam, consult the SF 2822 form for details.
So, there you have it! This simplified overview of FEGLI eligibility and enrollment options should equip you with the knowledge to navigate your life insurance choices confidently. Remember, the agency and handbook resources are always there to offer further guidance when needed.
FEGLI New Employees
Federal employees, this life insurance is for you! Unless you say "no thanks," you'll automatically get Basic Life Insurance on your first workday. Bonus: no medical tests are needed!
But wait, there's more! Within 60 days of starting, you can unlock three additional Optional Insurance levels – all without health checks. Remember, Basic is your gateway to optional coverage, so choose wisely! Submit your completed SF-2817 form and, while you're at it, consider naming beneficiaries through the SF-2823 form for a stress-free future.
Three tasty options await:
- Option A: Standard extra coverage for yourself.
- Option B: Boost your coverage by multiples of your salary.
- Option C: Extend protection to your loved ones with family coverage.
Once you've made your picks, relax. Your coverage automatically rolls over each year (as long as you remain eligible). Need to adjust? No sweat! You can decrease your coverage any time, and there's no annual rush to reenroll.
Ready to tweak your coverage? Here's when it's possible:
- Open season: But unlike other Federal benefits, this doesn't happen every year. Wait for the Office of Personnel Management's signal!
- Qualifying life event: Big life changes often trigger adjustment opportunities.
- Medical documentation: Got new health info? You might be able to update your coverage.
- Deployment: Serving as a civilian in a critical operation qualifies you for coverage adjustments.
So, there you have it! Get covered, get protected, and remember, FEGLI plays by its own rules, not the yearly open season schedule of other Federal benefits.
Life changes, FEGLI choices!
Experienced a major life event like marriage, divorce, bereavement, or welcoming a child? You're in luck! This qualifies you to rejoin or adjust your FEGLI coverage, including Basic Life Insurance and any or all of the Optional plans:
But wait, there's more! Haven't had FEGLI for a while? If it's been at least a year since you opted out of Basic, Option A, or Option B, you can rejoin the fold by proving you're healthy (medical tests at your own cost). However, this medical route doesn't work for Option C or increasing your family coverage multiples.
And lastly, if you're deployed in support of a critical operation, you can quickly secure Basic, Option A, and up to 5x multiples of Option B within 60 days of deployment notification.
Remember, these opportunities offer valuable flexibility to adapt your FEGLI coverage to your evolving needs. So, whether life throws you a curveball or you find yourself in exceptional circumstances, don't hesitate to explore your options and make informed choices about your and your family's well-being.
PRIOR FEDERAL SERVICE
Upon rehiring, your FEGLI coverage hinges on the duration of the break in service between the two appointments. If the break is 180 days or less, automatic enrollment occurs with the coverage level you held at the time of separation. You retain the option to cancel all or a portion of the coverage at any time, but increasing the coverage is not permissible. Those who previously waived all coverage are ineligible for enrollment upon rehiring.
For breaks in service exceeding 180 days, automatic enrollment encompasses Basic insurance and the same Optional insurance from your prior position. Additionally, you have the opportunity to elect Optional insurance or enhance the multiples of Optional insurance (if not already at the maximum). To effect this election, submit a SF 2817 within 60 days of your appointment, thus augmenting your life insurance.
It is crucial to scrutinize the bi-weekly Leave and Earnings Statement from the payroll office to verify accurate deductions for your election. This ensures the prevention of costly errors that could potentially lead to indebtedness.
Enrollment-eligible employees must decide within 60 days of entering their position whether to elect Optional Insurance alongside Basic Insurance. They can also enroll in Basic or Optional Insurance or make changes within 60 days following a life event (such as marriage, divorce, death of a spouse, acquiring a new child, etc.). While FEGLI Open Seasons allow for enrollment or changes, they occur infrequently. The last Open Season transpired in September 2016, preceded by one in 2004. Failure to make life insurance elections within the stipulated 60 days, waiving Basic Insurance, or neglecting to enroll or modify coverage within 60 days of a life event necessitates the submission of a SF 2817 to the human resources office, accompanied by a physical exam request for coverage.
Cancellation or Reduction of FEGLI Employees
Employees possess the flexibility to cancel, waive, or diminish their insurance coverage at their discretion. Utilizing their agency's electronic enrollment system or submitting form SF 2817 to the human resources office facilitates these actions. In the event of a Qualifying Life Event (QLE), an employee can nullify a waiver and secure Basic insurance and/or Options A, B, and C.
For canceling the waiver and acquiring Basic insurance and/or Options A and B outside of a QLE, the employee must furnish satisfactory medical information at their own expense, and at least one year must have transpired since the effective date of the waiver. This process involves completing a Request of Insurance (SF 2822). If approved by OFEGLI, the employee automatically attains Basic insurance (unless already held), and within 31 days of approval, the employee can elect Option A and/or Option B. However, medical information cannot be provided to elect Option C or increase Option C multiples; enrollment in Option C hinges solely on qualifying life events.
Retirees retain the authority to cancel or reduce their insurance coverage at any point, requiring written communication with an original signature from the insured retiree. The letter must specify the retiree's retirement claim number (CSA) or Social Security Number (SSN) and indicate the desired course of action. Post-retirement, coverage cannot be augmented, and once canceled, it cannot be reinstated.
Final Thoughts on FEGLI - Your Compass to Life Insurance Clarity
By taking control of your life insurance decisions, you're building a legacy of security for yourself and your loved ones. This knowledge ensures that, should life's storms arise, your family will be sheltered and protected.
Remember, knowledge is power. By actively engaging with FEGLI and making informed choices, you can secure a brighter and more financially secure future for yourself and those who matter most. So, set sail with confidence, knowing you're equipped to navigate the waters of life insurance with clarity and peace of mind.