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Life Insurance for Federal Employees

What is the Federal Employee Group Life Insurance? (FEGLI)

The Federal Employee Group Life Insurance is the largest group life insurance in the U.S. The benefit covers over 4 million FederalEmployees.  Understanding your options within FEGLI will allow you to make the best decisions for you and your family. This blog post will cover options for life insurance for federal employees.

FEGLI Basic Coverage

FEGLI provides three options for participants. Employees automatically get enrolled in the basic option and have the option of enrolling in option B & C. You can opt out of the
Employees at workbasic option, however there are some nice advantages to the basic option. When participating in this option the Federal Government pays for a third of the cost while the employee pays for two thirds. Cost does not increase as you get older with the basic option.
The basic option allows you to have life insurance coverage up to your base pay, plus an additional $2,000. If for example your base pay is $50,000 per year, you can have up to $52,000 in basic life insurance coverage. Since younger and older employees pay the same amount for coverage, younger employees get an Extra Free Benefit. Federal Employees under the age of 35 get their basic death benefit doubled at no additional cost. Beginning with age 35, the extra benefit is reduced by 10% each year until the employee reaches age 45, when there is no longer any Extra Free Benefit.

Option B

Option B is a benefit that is completly paid for by the employee. You can choose to elect coverage anywhere between one up to five times your base bay. That means that a federal employee earning $50,000 per year can choose between $50,000, $100,000, $150,000, $200,000 or $250,000 of coverage. The cost of option B increases as you get older.

 Option C

Option C is a life insurance benefit for your spouse or unmarried children under age 22. You can elect between $5,000-$25,000 in coverage for a spouse, and up to $12,500 in coverage for children. The cost of option C increases with age just like option B.

Conversion Options

FEGLI lets you convert your policy to an individual policy when your group insurance ends, however there are some things you need to know. You have a 60 day window to convert the policy once a terminating event occurs. If you miss the window, you're out of luck. Additionally, you can't convert your policy to an inexpensive aaa term life policy, instead only more expensive cash value policies are an option.

 A Real Life Example of a FEGLI Employee

FEGLI has a great calculator on their site  which I used to create an example that can help you understand the cost of benefits. In my example, I am using a 50 year old employee earning $50,000 per year.
A 50 year old employee earning $50,000 per year could get the following coverage: $52,000 in Basic coverage, $250,000 in Option B, and $25,000 for a spouse, and $12,500 for children. Coverage for the employee him/her self would cost $90.43 per month, while the option C coverage would be an additional $10.20 for a total of $100.23 per month.
As this employee ages, the cost of coverage will increase significantly. At age 55 the same individual would be paying $163.70 per month. At age 60 cost would be $340.93 per month, and at age 65 total cost per month would be $399.65 per month.

How Do I Reduce My FEGLI Benefit Costs and What are My Alternative Options?

Earlier we mentioned that a 60 year old employee would be $340.93 cents per month for $250,000 in coverage. An alternative would be to shop for your own individual term life policy, which would allow you to save money and lock in your monthly costs for a long time, instead of having your coverage increase every 5 years.
A healthy 60 year old could get the same $250,000 in coverage at $62 per month for a 10 year term, locking in the rate for 10 years, or a 20 year term for $113 a month, locking in the rate for 20 years. Ofcourse, your rate would be based on your health, but most people can save significantly by purchasing their own policy, then keeping their Federal Employee Group Life Insurance policy.

Comparing FEGLI with Individual Life Insurance

At we specialize in life insurance for federal employees and helping Federal Employees figure out if they can save money by getting their own life insurance policy. Please call us or fill out our quote form  and we can help you save money on your FEGLI benefits.

I am Liran Hirschkorn, from I want to talk to you today
about life insurance for federal employees. If you are a federal employee,
you have the FEGLI, or Federal Employee Group Life Insurance. Within the
Federal Employee Group Life Insurance, you have a few different options of
coverage that you can get. With the first basic option you can basically
get your base salary plus another $2,000 in life insurance coverage, and
the cost is the same for employees, whether you are 30-years-old or 50-
years-old. If you are an older employee, this is great because you are
paying the same dollar amount for the same coverage as a 30-year-old, which
is really good. If you are younger, the advantage is that up until age 35,
your coverage is doubled, and from age 35 to 45, that extra coverage is
reduced every year by 10%, until you get to 45, where you do not have that
extra coverage. So you do get additional insurance because you are paying
the same amount as a 50-year-old.
With option B in your Federal Employee Group Life Insurance Benefits, you
get to choose a policy that is anywhere from 1 to 5 times your base salary.
Somebody making $50,000 can get $50,000, $100,000, $150,000, $200,000, or
up to $250,000 in coverage, which is really great because it does not
require medical and you can get some life insurance coverage for your
family. The important thing to consider is that as you get older, with
these policies, your costs go up. Every 5 years; 45, 50, 55, 60, 65, you
really see the costs rising with these policies, and if you are generally
healthy, then you can typically go get an individual term life insurance
policy at a much lower cost than what you are paying for your benefits.
At, we have helped many federal employees get benefits at a
cheaper price than what they are paying through FEGLI because their costs
have just gone up and up every single year. Sometimes, we can save people
as much as 50% of what they are paying for the same benefit, and they get
to lock in a rate for term insurance for 10 or 20 years, so they are not
going to have future rate increases for a long period of time. If you are a
federal employee, what I would urge you to do is to take a look at your
benefits, see how much you are paying for life insurance, and compare that
with what an individual policy would cost you. With an individual policy,
you have more control, it is yours, it is not part of a group, and if you
are generally fairly healthy you can typically get a better rate through an
individual policy thank through your Federal Employee Group Life Insurance.
What I would recommend is that you speak with us, let us do some comparison
quotes for you; we work with over 30 different companies, and see if we can
save you money.
You can visit our website, at
Thank you.
Author: Liran Hirschkorn