Basics of FEGLI (Federal Employees' Group Life Insurance)
When you're a federal employee, you gain access to a range of valuable benefits, and one of the most important is the Federal Employees' Group Life Insurance (FEGLI) program. Understanding the fundamentals of FEGLI is crucial, as it offers financial protection to federal employees and their loved ones. In this blog, we'll delve into the basics of FEGLI, shedding light on what it encompasses and how it can benefit you.
What Is FEGLI? FEGLI, short for Federal Employees' Group Life Insurance, is a group-term life insurance program offered by the federal government. It provides life insurance coverage to eligible federal employees, retirees, and their dependents. The program is administered by the Office of Personnel Management (OPM) and is the largest group life insurance program in the world.
Eligibility: To be eligible for FEGLI coverage, you must be a federal employee who is eligible for federal retirement benefits. Most federal employees are automatically enrolled in FEGLI, but you can make changes to your coverage during specific life events or during the annual Open Season.
FEGLI Coverage Options: FEGLI offers several different coverage options, each designed to meet the unique needs of federal employees:
Basic Life Insurance: This is the core coverage and provides a base level of life insurance.
Optional Insurance: Federal employees can choose additional coverage, such as Standard, Additional, and Family coverage.
Post-Retirement Coverage: You have the option to carry your FEGLI coverage into retirement if you meet specific requirements.
Benefits: FEGLI provides financial protection to your loved ones in the event of your passing. It offers a death benefit that can be used to cover end-of-life expenses, debts, and mortgage payments, and provide financial security to your family.
Costs: The cost of FEGLI coverage depends on the type and amount of coverage you select. Basic Life Insurance premiums are shared between you and the government, with the government covering the majority of the cost. Optional Insurance premiums are entirely your responsibility.
Understanding the basics of FEGLI is essential for making informed decisions about your life insurance coverage. Whether you're a federal employee planning for retirement or just starting your federal career, FEGLI provides peace of mind, ensuring that your family is financially protected. Keep in mind that your needs may change over time, and the flexibility of the FEGLI program allows you to adapt your coverage accordingly. FEGLI is a valuable benefit that serves as a safety net for your loved ones, and taking advantage of it is a prudent step toward financial security.
