Age
35 & under
36
37
38
39
Factor
1.0
0.9
0.8
0.7
0.6
FEGLI
Know your Life
Insurance Options
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Basic Life Insurance
Life insurance is an important consideration for many individuals and families. The Federal Employees Group Life Insurance (FEGLI) plan is a group term life insurance program for federal employees. According to FEGLI, the basic life insurance amount one can obtain depends on an individual’s annual basic pay rounded to the next thousand plus $2,000.
For instance, if a person’s annual basic pay was $51,800; their life insurance coverage would be calculated as follows: $52,000 (rounded annual pay) + 2,000 = $54,000. Therefore their FEGLI life insurance coverage would total $54,000 in death benefits should something happen to them while they were enrolled in the program.
Fegli Policies
Option A is a fixed amount of $10,000 of coverage. An employee must have Basic coverage to be eligible for Option A.
An employee may choose Option B coverage with Basic Life, which is one, two, three, four, or five times the actual rate of basic pay, rounded to the next thousand.
The premium per $1,000 cost of Option B coverage is indicated in the chart below.
You may elect Option C, or Family Optional Insurance, as part of your Basic Life insurance. This allows you to cover eligible family members in multiples up to five times per unit coverage.
One unit is $5,000 for your spouse and $2,500 for each child.
Basic Life Insurance
Your basic insurance amount depends on your annual basic pay rounded to the next thousand plus $2,000. This excludes Cost of Living Adjustment (COLA). The minimum amount of basic life insurance is $10,000, for those earning $8,000 or less. The cost of Basic Life Insurance is 16 cents bi-weekly or 34.67 cents monthly per thousand; however free for postal employees.
Basic Life Insurance - Extra Benefit
As indicated in the chart below, for employees age 35 or under, their basic coverage is multiplied by two. Beginning at age 36, the multiplication factor for the amount of basic (extra benefit) insurance declines by 10% each year, until this extra benefit eds at age 45.
Age
40
41
42
43
44
Factor
0.5
0.4
0.3
0.2
0.1
Continuation of Basic Coverage after Retirement
The change in premiums is effective the first of the month following the month in which you reach age 65 or retire (if later). After age 65, Basic Life Inurance is free for all retirees who choose the 75% Reduction option. The 50% and No Reduction premiums, which vare listed below, continue for life.
75% Reduction – This calls for coverage to be reduced by 2% a month, beginning at age 65, with an ultimate reduction to 25% of the base policy value. Anyone who retires on or after January 1, 1990, must pay the same premium as active employees until age 65, (i.e.
$0.3467 per month per $1,000 of coverage). No further premium will be withheld after the calendar month in which the retiree becomes 65.
50% Reduction – This consists of a reduction of 1% a month beginning at age 65, which continues until coverage reaches 50% of the basic policy value. There is a higher premium charged for the lesser reduction (i.e. $1.0957 per month per $1,000 of coverage until age 65 and $0.75 a month per $1,000 of coverage thereafter).
No Reduction – This choice results in a larger premium being charged – $2.5967 per month per $1,000 of coverage until age 65 and $2.25 per month per $1,000 of coverage thereafter.
Basic Life Insurance -
Option A (Standard Optional Insurance)
Option A is a fixed amount of $10,000 of coverage. An employee must have Basic coverage to be eligible for Option A.
The costs are as follows:
Age Group
Under 35
35-39
40-44
45-49
50-54
55-59
60 & over
Bi Weekly
$0.20
$0.20
$0.30
$0.60
$1.00
$1.80
$6.00
Monthly
$0.43
$0.43
$0.65
$1.30
$2.17
$3.90
$13.00
Continuation of Option A after Retirement
Coverage is free after you turn age 65 or retire (if later). You cannot choose No Reduction for Option A. Coverage will reduce by 2% of the pre-retirement amount per month until it reaches 25% of the pre-retirement amount. This begins effective the month following your 65th birthday or retirement, whichever is later.
Basic Life Insurance -
Option B (Additional Optional Insurance)
An employee may choose Option B coverage with Basic Life, which is one, two, three, four, or five times the actual rate of basic pay, rounded to the next thousand. The premium per $1,000 cost of Option B coverage is indicated in the chart below.
Withholding Per $1,000 Insurance
Age Group
Under 35
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
Bi Weekly Factor
$0.02
$0.02
$0.03
$0.06
$0.10
$0.18
$0.40
$0.48
$0.86
$1.80
$2.88
Bi Weekly Cost
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Monthly Factor
$0.043
$0.043
$0.065
$0.130
$0.217
$0.390
$0.867
$1.040
$1.863
$3.900
$6.240
Monthly Cost
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Basic Life Insurance -
Option C (Family Optional Insurance)
Your may elect Option C, or Family Options Insurance, as part of your Basic Life insurance. This allows you cover eligible family members in multiples up to five times per unit coverage. One unit is $5,000 for your spouse and $2,500 for each child.
Age Group
Under 35
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
Bi Weekly
$0.20
$0.24
$0.37
$0.53
$0.83
$1.33
$2.43
$2.83
$3.83
$5.76
$7.80
Monthly
$0.43
$0.52
$0.80
$1.15
$1.80
$2.88
$5.27
$6.13
$8.30
$12.48
$16.90
Continuation of Option B and C after Retirement
Option B and C are options you have to continue to pay for the rest of your life, however, option B will eventually become too expensive and price you out. These are the plans you may want to look to replace before they get too expensive.
Accidental Death and Dismemberment
Accidental death benefits are equal to your Basic Life insurance coverage. Accidental dismemberment benefits for the loss of a hand, foot, or eye are equal to half of the Basic Life Insurance Amount; however, if you lose any two of these, the full amount is payable. There is no additional cost for this coverage.
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