Can You Borrow from Your FEGLI Policy | FEGLI Loans

Can You Borrow from Your FEGLI Policy?

Retired federal employees who have been diagnosed with cancer or another serious illness may wonder: can you borrow from your FEGLI policy? As every federal employee knows, FEGLI, the Federal Employee Group Life Insurance Program, is famous for its virtues and its limitations. However, it is possible to borrow money from your FEGLI policy.

FEGLI Policy Limitations

One major limitation is that the amount of life insurance coverage is fixed once the federal employee retires. People go through life changes that would suggest coverage should fluctuate, where a reduction in the size of the coverage makes sense. From going through a divorce, or having their spouse pass away to having their children grow up, coverage that was once vital for the continued support of a family may no longer be needed.

Two men talking about FEGLI loansThe problem is, the policyholder is stuck paying for coverage they don’t need. And the retiree can’t cancel the insurance policy, regardless of circumstances.

If the policyholder has a serious financial problem—like trying to cover the costs of medical treatment, maintaining the policy can be difficult.

FEGLI Loans: The Silver Lining

Here’s one virtue: If the policyholder meets certain criteria, they may be eligible for a loan against the FEGLI policy. It’s a loan where no payments need to be made; the repayment is handled from the proceeds of the death benefit. And they can use the loan for any purpose; it’s up to them.

In that case, the extra insurance coverage, that might otherwise feel like a burden, can be important to determining the possible size of the loan. A negative becomes a positive.

If you were curious: can you borrow from your FEGLI policy? We’re happy to say that the answer is yes. If a Living Benefit Loan could make a difference to you or someone you love, contact us to schedule a free consultation.

Life Credit Company

We are a licensed consumer lender that is dedicated to providing financial assistance for patients who are facing serious illness. With a Living Benefit Loan, from Life Credit Company, you can receive up to 50% of your life insurance policy’s death benefit today. Whether you need to catch up on medical bills, consolidate debt or take your family on a dream vacation, this is your money to spend without restrictions. If you have at least $75,000 of life insurance and have been diagnosed with cancer or other serious medical condition, you may qualify for a loan. Contact us today to speak with a professional counselor who is standing by to assist you.

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16 Comments

  1. I have been a federal employee for 8 years and have had the same group life insurance and I wanted to know if I qualified to borrow from my fegli policy

    Reply
    • Please call us at 888-274-1777 to speak to one of our counselors as they would be able to determine if your qualify in just a few minutes.

      Reply
  2. Hello I have been a federal employee for 8 years can I barrow against my fegli policy?

    Reply
    • We may be able to help, please call us at 1-888-274-1777 to speak to one of our counselors about your case.

      Reply
    • I am a retired federal employee who needs to borrow $10,000 from my life insurance policy. I am not a cancer patient. I do needs funds to pay off bills.

      Reply
      • To help determine if we can help, please contact us at 1-888-274-1777.

        Reply
  3. Are only people with cancer or a serious illness eligible to apply for a policy loan?

    Reply
    • In most instances, yes. I suggest calling us at 1-888-274-1777 to speak to our professional counselors about your situation.

      Reply
    • Are only people with illnesses eligible to apply for a policy loan

      Reply
      • To determine if you qualify, please contact us at 1-888-274-1777

        Reply
  4. Can only people with cancer or a terminal illness apply for a policy loan?

    Reply
    • Not necessarily, call us at 1-888-274-1777 to speak to our professional counselors about your situation. We may be able to help.

      Reply
  5. I am a retired Federal Employee for the past 14 years. I have had basic life insurance for the past 40 years plus. I have recently faced some financial difficulties and being able to use $10,000 of my life insurance would benefit greatly at this time. I a not suffering from cancer or any terminal illness. I have other life insurance with another company so I will have plenty of insurance should I need it at that point.

    Thank you for any information you can provide or furnish.

    Reply
    • We may be able to assist you, please contact us at 1-888-274-1777.

      Reply
  6. Hi- I am a retired federal government worker, some 35 years at BLS. I have Fegli for life insurance, and would like to know how it is possible to get a loan to cover financial hardships. I would like to get their tel, no, if you have it.Please e-mail info.

    Reply
    • Yes, we will contact you today.

      Reply

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