If you leave the Armed Services and go to work as a civilian employee of the Federal Government you could then be eligible for the Federal Employees' Group Life Insurance (FEGLI). If you have any questions about eligibility, see your human resources officer.
Participation in the FEGLI program is entirely voluntary. However, if you are eligible you are automatically covered under the Basic insurance unless you waive the coverage. You will have the optional coverage only if you elect it. Remember there are strict time limits to elect optional insurance. You only have 31 days from the date of your appointment to an eligible position to elect optional insurance.
The types of coverage offered under the FEGLI program are listed below:
1) Basic Insurance – The Federal Government pays one-third the cost of your basic insurance if you are eligible. You are automatically covered under basic insurance, unless you waive this coverage. Your basic insurance amount (BIA) is equal to the greater of a) your annual rate of basic pay rounded up to the next $1,000.00 plus $2,000.00 or b) $10,000.00. Basic insurance also provides an extra benefit to employees under age 45, at no additional cost. This extra benefit doubles the amount of basic insurance if you die when you are age 35 or younger. The extra benefit decreases by 10% each year until there is no extra benefit if you die at age 45 or older.
2) Option A – Standard in the amount of $10,000.00.
3) Option B – Additional in an amount equal to one, two, three, four or five times your salary rate of basic pay (rounded up to the nearest $1,000.00).
4) Option C – Family to insure your spouse and your eligible children. You may elect either one, two, three, four or five multiples of coverage. Each multiple is equal to $5,000.00 for your spouse and $2,500.00 for each of your dependent children.
Please note that it is possible, depending on your health status, to obtain a replacement for the option B coverage at a more economical rate (over time as much as 75% cheaper). These policies are available from well known and respected commercial insurance companies. We encourage you to visit www.feglialternatives.com to receive a no obligation quote and comparison to the Option B premiums. There are also financial calculators to help you determine your life insurance needs.
It is possible to cancel the Option B coverage and maintain the other coverage’s you have elected (basic, Option A and Option C). However, if you cancel the Basic coverage, you will automatically cancel all forms of optional coverage. If you have any questions you should speak with your human resources officer. If you intend to replace the Option B coverage with a policy from a commercial insurer, do not cancel any existing coverage until you have been notified in writing that your have been approved for coverage from the commercial insurer. A full copy of the FEGLI handbook can be located at www.opm.gov/insue/life.