FEGLI: The Basics – Coverage Options
What is Life Insurance?
Life Insurance is a contract. If you pay the insurance company a certain amount of money each month and you die during the contract period, the insurance company will pay the person you select as your beneficiary a fixed amount of money.
What is FEGLI?
Federal Employee Group Life Insurance (FEGLI) is a group term life insurance program provided by MetLife and sponsored by the Federal Government. This particular program is only available to Federal Employees, and is typically cheaper than an individual policy. There are three types of FEGLI available
All new Federal Employees are automatically enrolled, so if you don’t want this coverage, you have to tell HR that you want to opt out.
The payout is your annual basic salary at the time of your death, rounded up to the nearest $1,000, with an extra $2,000 added to that.
The cost is 15¢ for each $1,000 of coverage each biweekly pay period.
For an additional $10,000 of coverage, you can add Option A along with your Basic coverage.
If you are under 35 years old, the cost is 30¢ each biweekly pay period. The price goes up every five years until you reach age 60.
Option B provides extra coverage for up to five times your basic annual salary. If you are under 35 years old, the cost is 3¢ per $1,000 of coverage each biweekly pay period. The price goes up every five years until you reach age 80.
Option C allows you to take out life insurance for your spouse and children, in multiples of $5,000 for your spouse and $2,500 for your children. You can purchase from one to five multiples of coverage for your family. Children only qualify if they are under 22 years old, or have developed a qualifying mental or physical disability before reaching age 22.
If you are under 35 years old, the cost is 27¢ per multiple each biweekly pay period. The price goes up every five years until you reach age 80. Each multiple you purchase applies for all qualified family members, and does not change depending on how many children you have.
Want to learn more about FEGLI? Download our free resource, The Good, The Bad, And The Fegli