FEGLI Types of Coverage

Through the FEGLI Program, the Federal Government offers its employees an opportunity to participate in a group life insurance plan which offers low rates and the convenience of payment through payroll deduction. Participation is entirely voluntary. Employees who elect FEGLI coverage may cancel at anytime. FEGLI builds no cash or basic life insurance. Employees who elect FEGLI coverage may cancel at any time. FEGLI builds no cash or loan value. It is intended as a form of immediate protection against financial hardship in the event of death.

• Basic Life - The Basic life insurance coverage is equal to the actual rate of annual basic pay (rounded to the next $1,000) plus $2,000. For example, if someone's annual salary is $25,486., you would round up to the next $1,000. ($26,000) and then add $2,000., making a total of $28,000. There is also an extra benefit, which doubles the amount of basic life insurance coverage; this extra benefit is provided at no cost to the employee. The extra benefit starts decreasing 10% a year at age 36, until at the age of 45 the extra benefit ends. Cost of the basic life insurance to the employee is 35.75 cents monthly for each $1,000. of coverage. The cost to the employee reflects a pro-rata share of two-thirds of the total cost while the Government's share is one-third.

• Option A - Standard - If an employee elects Basic Life Insurance coverage, he/she may also elect this option in the amount of $10,000. The cost depends on age. For example, an employee in the 40-44 age group would pay $1.52 monthly for this coverage. The employee pays the full cost of this insurance.

• Option B - Additional - An employee may elect anywhere from one to five times their annual basic pay (rounded up to the next $1,000. - in our example from A above, it would be $26,000.) The cost depends on age. For example, an employee in the 40-44 age group would pay 15.2 cents monthly per $1,000. of coverage. The employee pays the full cost of this insurance.

• Option C - Family - This provides coverage of $5,000. for the employee's spouse and $2,500. for each dependent child. The cost depends on the employee's age. For example, an employee in the 40-44 age group would pay $1.13. for this coverage. The employee pays the full cost of this insurance.