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FEGLI Coverage Overview
The Federal Government established the Federal Employees' Group Life Insurance (FEGLI) Program on August 28, 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.
Basic Coverage
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To calculate basic coverage, round your base salary up to the nearest $1000, and add $2000. For employees 45 and older, basic coverage equals this amount. e.g. If your salary is $35,300, your base coverage would be $38,000 ($36,000 plus $2,000) For employees under age 35, basic coverage equals 2 times this amount. Accidental death is included.
Coverage Option "A"
$10,000 Accidental death is included.
Coverage Option "B"
If you have selected "Basic Coverage", you may select Option "B" in multilples of 1-5 times salary. To calculate your amount, simply round your salary to the next highest $1000 and multiply by the desired multiple 1-5. For example, if you make $45,300 and want coverage of 5 times salary, round up to $46,000 and multiply by 5 for a total of $230,000. Accidental death is not included.
While option "B" provides the most coverage, it is also where you need to do your homework. Comparison shopping could save you 50-70% over a 10 year period.
Coverage Option "C"
Option C provides coverage for your spouse and eligible dependent children. When you elect Option C, all of your eligible family members are automatically covered. You may elect either 1, 2, 3, 4 or 5 multiples of coverage. Each multiple is equal to $5,000 for your spouse and $2,500 for each eligible dependent child.
What does "Open Season" mean?
"Open Season" is the period allowing you to change your benefits such as: increasing benefits, decreasing benefits or adding family members.
Do I have to wait for the next "Open Season" to replace or cancel my FEGLI Option "B" benefits?
No. You may cancel life insurance coverage at any time. However, you should be aware that your opportunities to re-enroll are limited.
I am a Federal employee. How do I cancel (waive) or reduce my coverage?
Unless you assign your life insurance, you may cancel (waive) your Basic insurance at any time.
Is FEGLI Expensive?
Yes. The comptroller General of the United States reported on April 7, 1986, that private sector insurance programs typically provide greater coverage at much less cost to the employees than FEGLI program.
Is FEGLI Inferior?
YES! The Government Accounting Office reported in April of 1986 that the FEGLI program is inferior to many private plans
Is FEGLI financially backed by the Federal Government?
No. A large group of private insurance companies underwrites the group policy.
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