FEGLI is the Federal Employee Group Insurance. The Federal Employees’ Group Life Insurance (FEGLI) Program is a life insurance program for Federal and Postal employees and annuitants, authorized by law (Chapter 87 of Title 5, United States Code). The Office of Personnel Management (OPM) administers the Program and sets the premiums. The FEGLI regulations are in Title 5 of the Code of Federal Regulations, Part 870.
FEGLI is group term life insurance. It does not build up cash value. You cannot take a loan
out against your FEGLI insurance.
There are four parts to FEGLI: Basic Coverage, Option A, Option B, and Option C.
As an eligible employee, you are automatically enrolled in Basic insurance unless you waive this coverage. Basic insurance covers your life for whichever is greater:
1) Your annual rate of basic pay, rounded up to the next even $1,000, plus $2,000; or
2) $10,000.This is called the Basic Insurance Amount, or BIA. The Government pays one-third of the premium cost for Basic and you pay two-thirds. The U.S. Postal Service pays the entire cost of Basic insurance for its employees.
Option A insures your life for $10,000. Cost varies by age.
Option B insures your life for 1, 2, 3, 4, or 5 multiples of your annual rate of basic pay rounded up to the next even $1,000. You can only increase multiplier at life-changing events (Marriage, Children, Divorce, Etc.) Costs for Option B increases in 5 year increments, starting at age 35.
Option C insures the lives of your spouse and eligible dependent children. It comes in 1, 2, 3, 4, or 5 multiples of coverage. Each multiple is equal to $5,000 for a spouse and $2,500 for each eligible dependent child.