What Is FEGLI? The Complete Guide to Federal Employees' Group Life Insurance

If you're a federal employee, you almost certainly have life insurance through FEGLI — but do you actually understand what you have? Millions of federal workers are enrolled in the program without fully grasping their coverage levels, costs, what happens at retirement, or how to access their policy's value during a serious illness.

This is the most comprehensive guide to FEGLI insurance (Federal Employees' Group Life Insurance) on the web. Whether you're a new hire trying to understand your enrollment options or a long-serving federal employee approaching retirement, this guide covers everything you need to know.

What Is FEGLI? (Federal Employees' Group Life Insurance)

FEGLI stands for Federal Employees' Group Life Insurance. It is the largest group life insurance program in the world, covering more than 4 million federal employees, retirees, and their family members. FEGLI was established in 1954 and is administered by the U.S. Office of Personnel Management (OPM). The underlying insurance is underwritten by MetLife.

FEGLI is a group term life insurance program — this means it provides a death benefit paid to your beneficiaries when you die, but it builds no cash value like a whole life or permanent insurance policy would. Despite this, FEGLI provides extraordinarily valuable coverage at group rates that individual market policies typically can't match.

Because it's group insurance administered through the federal government, FEGLI has several distinctive features:

• No medical exam required for most enrollment periods
• Group rates that are often lower than comparable individual coverage
• Government pays one-third of Basic coverage premiums
• Coverage is automatic for new federal employees (unless waived)
• Portable into retirement under certain conditions

Who Qualifies for FEGLI?

Most federal civilian employees are eligible for FEGLI, including:

• Full-time federal employees
• Part-time employees working more than half-time (at least 20 hours per week)
• Federal retirees who meet continuity requirements (enrolled in FEGLI for 5 years immediately before retirement, or since first opportunity to enroll)
• Certain employees of the District of Columbia government

Not eligible for FEGLI:

• Intermittent or "when actually employed" (WAE) workers
• Employees working less than half-time (under 20 hours per week)
• Temporary employees with appointments of less than 1 year (in some cases)
• Members of Congress (they have a separate plan)
• Postal Service employees (covered by a separate plan)

FEGLI Coverage Options: Basic, Option A, Option B, Option C

FEGLI has four distinct coverage categories. Understanding each one is essential for making smart enrollment decisions.

Basic Insurance

Basic FEGLI coverage equals your annual basic pay rounded up to the nearest $1,000, plus $2,000. For example, if your salary is $72,400, your Basic coverage is $74,000 ($73,000 + $2,000).

Extra Benefit for younger employees: Employees under age 35 receive an Extra Benefit that doubles their Basic coverage at no additional cost. The Extra Benefit phases out between ages 35 and 45 — decreasing by 10% per year — and disappears entirely at age 45.

Cost sharing: Basic coverage is the only FEGLI tier where the government contributes. The government pays one-third of the Basic premium; the employee pays two-thirds. For most employees, the biweekly cost for Basic coverage is $0.15 per $1,000 of insurance — a remarkably low rate.

Option A — Standard

Option A adds a flat $10,000 in additional life insurance coverage. The biweekly premium is approximately $0.43, regardless of salary or age (under age 35). After age 35, premiums increase by age band. Option A is fully employee-paid.

Option A is one of the most affordable supplemental coverage options available, and many financial advisors recommend it as a cost-effective way to add a meaningful death benefit.

Option B — Additional

Option B is the most flexible — and most valuable — FEGLI optional coverage. It allows employees to elect 1 to 5 times their annual basic pay (rounded to the nearest $1,000) in additional life insurance. You choose the number of multiples that works for your family's needs.

Unlike Option A, Option B premiums are heavily age-banded. The same $1,000 of coverage costs dramatically more for a 60-year-old than a 30-year-old:

For a GS-13 Step 5 employee earning $107,000 with 5x Option B, the total Option B death benefit is $535,000. That is a significant financial asset — especially for families with young children or significant mortgage debt.

Option C — Family

Option C provides life insurance for your spouse and eligible dependent children. You can elect 1 to 5 multiples:

• Spouse coverage: $5,000 per multiple (up to $25,000)
• Dependent child coverage: $2,500 per multiple per eligible child (up to $12,500 per child)

All eligible dependent children receive the same coverage amount under the multiple you select. "Dependent children" includes unmarried children under age 22 and certain disabled children who are dependent on you regardless of age.

Option C premiums are also age-banded but based on the employee's age, not the covered family member's age.

How Much Does FEGLI Cost? A Real Example

Let's make this concrete. Suppose you are a 45-year-old federal employee earning $95,000 per year with Basic + 5x Option B coverage:

• Basic coverage: $97,000 ($95,000 rounded to $96,000 + $2,000 = $97,000). Your biweekly cost: $97 × $0.10 = $9.70 (two-thirds of premium; government pays one-third).
• Option B (5x): 5 × $95,000 = $475,000 in coverage. At age 45–49, $0.14 per $1,000 biweekly. Cost: 475 × $0.14 = $66.50 biweekly.
• Total death benefit: $572,000
• Total biweekly premium cost to you: approximately $76.20 ($1,975 annually)

At age 55–59 with the same coverage, Option B costs climb to ~$171 biweekly — a compelling reason to evaluate your coverage strategy before retirement.

When and How to Enroll in FEGLI

FEGLI enrollment windows are more limited than many people realize. Miss a window, and you may wait years for the next opportunity.

Initial Enrollment (60 Days From Hire)

New federal employees have 60 days from their hire date to elect optional coverage (Options A, B, and C) without medical underwriting. This is the single most important enrollment window for most federal employees. During this period:

• No medical exam is required
• No health questions are asked
• You're approved regardless of pre-existing conditions
• You can elect any multiple of Option B (1–5x) without proof of insurability

Recommendation: If you're a new federal employee in good health, elect maximum coverage during this window. You can always reduce coverage later; increasing it later requires proof of insurability.

Open Seasons

OPM occasionally designates FEGLI Open Seasons when employees can enroll in or increase optional coverage without medical underwriting. These Open Seasons are infrequent — sometimes separated by many years. You cannot count on an Open Season being available when you want to increase coverage.

Qualifying Life Events

Certain life events allow you to change your FEGLI elections within 60 days without proof of insurability:

• Marriage or divorce
• Birth or adoption of a child
• Death of a spouse or dependent child
• Other OPM-defined events

Proof of Insurability

Outside of the above windows, you can apply for additional FEGLI coverage anytime by submitting proof of insurability (a medical questionnaire and potentially a medical exam). Approval is not guaranteed — OPM's Office of Federal Employees' Group Life Insurance reviews each application.

FEGLI in Retirement: What Changes and What Reduces

This is where many federal employees are caught off guard. FEGLI coverage does not simply carry over unchanged into retirement. Understanding how it changes is critical for retirement financial planning.

Eligibility to Carry FEGLI Into Retirement

To continue FEGLI coverage in retirement, you must have been enrolled in FEGLI for the 5 years immediately before your retirement date (or since your first opportunity to enroll if less than 5 years). If you meet this requirement, you can continue coverage.

Post-Retirement Reduction Schedule

Once you retire and reach age 65, FEGLI coverage begins to reduce — unless you made specific elections at retirement to limit reductions (at higher premiums).

Basic Coverage post-65 options:

• 75% Reduction (free): Basic coverage reduces by 2% per month starting at age 65, eventually settling at 25% of its pre-reduction value. No post-65 premiums.
• 50% Reduction: Coverage reduces to 50% of pre-retirement amount. Small post-65 premium.
• No Reduction: Full Basic coverage retained at a higher post-65 premium.

Option A post-retirement: Reduces to $2,500 at age 65 with no further premiums.

Option B post-retirement options:

• Full Reduction (free): Option B reduces to zero over 5 years after age 65. Your beneficiaries receive nothing from Option B if you die after this reduction is complete.
• No Reduction: Full Option B maintained at significant post-65 premiums.

Can You Borrow Against FEGLI? Accessing Your Policy's Value

This is one of the most common questions federal employees ask: can I borrow against my FEGLI policy?

FEGLI is pure group term insurance — it builds no cash value. Unlike whole life insurance, there is no savings component to borrow against through the standard policy mechanism. However, there are two important options:

FEGLI's Built-In Living Benefit Feature

FEGLI includes a limited built-in "Living Benefit" provision for terminally ill employees and retirees. If you have a terminal illness with a life expectancy of 9 months or less (certified by a physician), you can elect to receive a lump-sum payment equal to your Basic FEGLI coverage — in $1,000 increments — up to a maximum of $5,000.

This is a meaningful but limited option. For most federal employees, FEGLI Basic coverage alone is many times larger than $5,000 — so the built-in Living Benefit captures only a tiny fraction of the policy's actual value.

Living Benefit Loan Through Life Credit

A far more powerful option for federal employees facing serious illness is a Living Benefit Loan through Life Credit. This loan borrows against your total FEGLI death benefit — Basic plus Options A, B, and C — providing access to up to 50% of your total policy value, with no monthly payments and no credit check.

For a federal employee with $600,000 in total FEGLI coverage, a Living Benefit Loan could provide access to up to $300,000 — compared to the $5,000 maximum from FEGLI's own Living Benefit feature. Funding occurs in as few as 3 business days.

Read the complete guide to borrowing against your FEGLI policy →

Can I borrow against my FEGLI policy? Full details →

FEGLI Conversion Options

When FEGLI coverage ends — because you leave federal service, lose eligibility, or reach the end of certain coverage periods — you generally have the right to convert your FEGLI coverage to an individual policy without proof of insurability.

Key facts about FEGLI conversion:

• You must request conversion within 31 days of losing FEGLI coverage
• You can convert to an individual whole life policy from MetLife (the FEGLI carrier)
• No medical exam or health questions are required
• Coverage amount can be up to the amount of your FEGLI coverage that is ending
• Individual converted policies are significantly more expensive than FEGLI group rates
• Converted policies build cash value as whole life policies

Conversion is most valuable for employees who are uninsurable on the private market due to health conditions, since it provides a path to whole life coverage without underwriting. For healthy individuals with other options, the cost may not be competitive.

FEGLI vs. Private Life Insurance: Which Is Better?

The answer depends on your age, health, coverage needs, and how long you plan to stay in federal service.

Best practice: FEGLI and private insurance aren't mutually exclusive. Many financial planners recommend maximizing FEGLI during early career years when group rates are excellent, while supplementing with a private term policy locked in at a younger age to provide coverage flexibility at retirement.

Frequently Asked Questions About FEGLI