Federal Employees Group Life Insurance (FEGLI): Coverage and Options

Federal Employees Group Life Insurance (FEGLI) is the largest group life insurance program in the United States, covering more than 4 million federal employees, retirees, and their family members (OPM FEGLI). Administered by the U.S. Office of Personnel Management (OPM) and underwritten by Metropolitan Life Insurance Company (MetLife) under a government contract, FEGLI operates under 5 U.S.C. Chapter 87. Understanding how FEGLI coverage is structured, what optional components are available, and when election windows open is essential for federal employees managing their compensation and long-term financial planning — a topic that intersects with the broader federal employee benefits overview.

Definition and scope

FEGLI is a term life insurance program established by the Federal Employees' Group Life Insurance Act of 1954, codified at 5 U.S.C. §§ 8701–8716. Coverage is group-rated, meaning individual underwriting (medical exams, health history review) is generally not required for timely enrollment. The program applies to most full-time and part-time federal civilian employees in the executive, legislative, and judicial branches, though certain categories — including temporary employees serving appointments of fewer than 1 year — are excluded by statute.

Premiums are shared between the employee and the federal government. For Basic insurance, the government contributes one-third of the total premium cost; employees pay the remaining two-thirds, deducted biweekly from pay (OPM FEGLI Handbook). For all Optional insurance components, employees bear 100% of the premium with no government contribution.

FEGLI coverage falls into two broad categories: Basic and Optional. These are not interchangeable — Optional coverage generally requires Basic enrollment as a prerequisite.

How it works

Basic Coverage

Basic coverage equals the employee's annual base pay rounded up to the next $1,000, plus an additional $2,000. For example, an employee earning $67,400 per year receives $69,000 in Basic coverage. This figure is referred to as the "Basic Insurance Amount" (BIA). Employees are automatically enrolled in Basic coverage upon hire unless they affirmatively waive it in writing within 31 days.

Optional Coverage — Three Types

Optional coverage is elected separately and adds to the BIA. OPM structures Optional FEGLI into three distinct components:

1. Option A (Standard): Adds a flat $10,000 of coverage on top of the BIA. Premiums are age-banded, increasing at five-year age intervals. At age 35–39, the biweekly premium is $0.40 per pay period (OPM FEGLI Premium Rates).
2. Option B (Additional): Adds coverage in multiples of 1 to 5 times the employee's annual base pay (rounded to the next $1,000). An employee earning $80,000 who elects 3x Option B carries $240,000 in additional coverage. Option B premiums are also age-banded and increase significantly after age 40.
3. Option C (Family): Covers eligible family members — specifically a spouse and dependent children. Spouse coverage is available in multiples of 1 to 5, with each multiple providing $5,000 of spouse coverage and $2,500 per eligible dependent child. The employee pays all Option C premiums.

Enrollment windows are strictly defined. New employees have 60 days from the date of appointment to elect Optional coverage without medical documentation. Outside that window, enrollment requires a qualifying life event (QLE) such as marriage or adoption, or submission of evidence of insurability (medical underwriting) through Standard Form (SF) 2822.

At retirement, coverage continuation depends on the length of federal service and age at retirement. Employees with 5 or more years of FEGLI enrollment who retire on an immediate annuity may carry coverage into retirement, though Basic coverage reduces by 2% per month beginning at age 65 under the standard reduction option, eventually settling at 25% of the pre-retirement amount (OPM FEGLI Handbook).

Common scenarios

Scenario 1: New hire with dependents
A new GS-9 employee (salary approximately $49,025 under the 2024 GS pay table) is automatically enrolled in Basic coverage of $51,000 (rounded up, plus $2,000). Within the 60-day window, the employee elects Option B at 3x ($150,000 additional) and Option C at 2 multiples ($10,000 spouse / $5,000 per child). Total coverage package: approximately $211,000 on the employee, plus family coverage.

Scenario 2: Mid-career election after a qualifying life event
An employee who initially waived Optional coverage gets married. The QLE triggers a 60-day enrollment window during which Option B and Option C can be added without medical underwriting, using SF 2817.

Scenario 3: Approaching retirement
An employee nearing retirement evaluates the three reduction options for Basic coverage post-age-65: full reduction (no cost, coverage drops to 25%), no reduction (significant premium continues), or 50% reduction (moderate premium). The choice is irrevocable once retirement begins, making it a high-stakes decision point that connects to the full federal retirement systems framework.

Decision boundaries

Several structural constraints govern FEGLI elections and distinguish it from other benefit programs such as the Federal Employee Health Benefits Program:

• Basic is a prerequisite: Optional A, B, and C cannot be held without active Basic enrollment. Waiving Basic eliminates all Optional coverage.
• No open season for life insurance: Unlike FEHB, FEGLI has no annual open enrollment. Elections are restricted to initial appointment, QLEs, or evidence of insurability.
• Option B cost trajectory: Because Option B premiums are age-banded and employees bear 100% of the cost, the biweekly cost for a 5x multiplier at age 60–64 is substantially higher than at age 35–39 — a factor that warrants comparison against private-sector term policies for employees in that age bracket.
• Conversion right: Employees who separate or retire and lose coverage have 31 days to convert group coverage to an individual policy with MetLife without medical underwriting, though converted policies carry individual (not group) premium rates.
• SF 2817 vs. SF 2822: SF 2817 governs standard elections during qualifying windows; SF 2822 is the evidence of insurability form required outside those windows. Submitting the wrong form delays or invalidates the election.

Federal employees seeking the full picture of non-insurance benefit programs — including the Thrift Savings Plan and flexible spending options — can find structured overviews across the federalemployeeauthority.com reference library.