FEGLI (Federal Employees Group Life Insurance) offers group term life insurance, so there is no cash value that builds up. It is Basic life insurance coverage with three options should you choose to add.
The majority of federal employees are automatically placed underneath the Basic coverage. The amount is determined by your annual rate of basic pay carried to the nearest one-thousand plus two-thousand. Two-thirds is paid by the employee while one- third is paid by the government (U.S. Postal employees have 100% of their basic insurance paid for.)
Because basic insurance is automatic, employees must opt out if they prefer not to receive coverage, however, the three optional selections are not automatic, but something the employee must opt into and employees must pay full price for these options which go up yearly based on age. In order to elect these additional insurance options, you must have Basic coverage. These options (also called the extra benefit) are:
- Option A-Standard offering $10,000 coverage
- Option B-Additional offering 1, 2, 3, 4 and 5 multiples of employees annual rate of basic pay
- Option C-Family offering insurance for employee’s spouse as well as dependent children
It is important for employees to be able to understand what they are offered, so that they can decipher what direction is best for their family and retirement goals.
To learn more about your FEGLI and to set up a complimentary review of your benefits with one of our specialists, contact us today!