Federal Employees’ Group Life Insurance (FEGLI) Program ...
Federal Employees' Group Life Insurance (FEGLI) Program Handbook
April 2014
INTRODUCTION
What Is FEGLI? FEGLI at a Glance OPM Responsibilities OFEGLI Responsibilities Agency Responsibilities Insured Individual Responsibilities Correction of Errors Incontestability Initial Decision and Reconsideration Historical Information
WHAT IS FEGLI?
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.
OPM has a contract with the Metropolitan Life Insurance Company (MetLife) to provide this life insurance. MetLife has an administrative office called the Office of Federal Employees' Group Life Insurance (OFEGLI). OFEGLI is the contractor that adjudicates claims under the FEGLI Program.
FEGLI AT A GLANCE
Purpose Law and Regulations Basic Insurance Optional Insurance Accidental Death and
Dismemberment Benefits Initial Election Effective Date
Effect of Separation from Service on Waiver
Termination of Insurance 31-Day Extension of Coverage and
Conversion of Insurance Eligibility for Life Insurance as an
Annuitant or Compensationer Post-65 Reductions in the Amount
Waiver/Cancellation of Insurance Cancellation of Waiver by
Proving Insurability Cancellation of Waiver Due to
Life Event Open Seasons Nonpay Status
of Insurance Order of Precedence Designation of Beneficiary Court Orders Assignment Living Benefits Filing a Claim
Purpose
This section provides a summary of the major features of the Federal Employees' Group Life Insurance (FEGLI) Program. This information is repeated in more detail in the individual chapters of this Handbook. This section also provides links from the summary information to the individual chapter that provides more detailed information on each topic.
Law and Regulations
Public Law 83-598 authorized the creation of the FEGLI Program; the law governing the Program is found in Chapter 87 of Title 5, United States Code. FEGLI Program regulations are found in part 870 of Title 5, Code of Federal Regulations. Links to the law and regulations are on the FEGLI homepage at .
Basic Insurance
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.
If you are under age 45, you automatically have extra coverage without paying any additional premium. This Extra Benefit increases the amount of Basic insurance payable at the time of your death if you die before age 45.
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Optional Insurance
If you have Basic insurance, you may also elect Optional insurance. You are not automatically covered by Optional insurance like you are with Basic insurance. You must take action to elect Optional insurance. You pay the full cost for all Optional insurance you elect. You must have Basic insurance to elect any Optional insurance. Optional insurance provides coverage in addition to what you have with Basic insurance.
There are three types of Optional insurance: Option A-Standard, Option B-Additional, and Option C-Family.
Option A insures your life for $10,000.
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.
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.
Accidental Death & Dismemberment Benefits
Accidental death and dismemberment (AD&D) coverage is an automatic part of Basic insurance and Option A insurance (if elected) for employees, at no additional cost. There is no accidental death and dismemberment coverage with Options B and C, and there is none for annuitants or enrollees on workers' compensation ("compensationers").
Accidental death benefits are payable when you sustain injuries by accidental means and, within one year afterwards, you die resulting directly from those injuries. Under Basic insurance, accidental death benefits are equal to your BIA (without the Extra Benefit). Under Option A, accidental death benefits are equal to your Option A coverage.
Accidental dismemberment benefits are payable when you sustain injuries by accidental means and, within one year afterwards, you lose a limb or sight in one or both eyes resulting directly from those injuries. Under Basic insurance, accidental dismemberment benefits are equal to onehalf of your BIA for the loss of one limb or sight in one eye. Under Option A, accidental dismemberment benefits are equal to one-half of your Option A coverage for the loss of one limb or sight in one eye.
Initial Election
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Unless your position is excluded from FEGLI coverage by law or regulation, you are automatically enrolled in Basic insurance. If you do not want this coverage, you can either waive it when you first become eligible for coverage, or cancel it at a later date. Optional insurance is not automatic; you must specifically elect the types of Optional insurance you want within 60 days of becoming eligible.
Effective Date
Basic insurance coverage is effective on the first day you are in a pay and duty status in an eligible position. Option A and Option B insurance coverage is effective on the first day you are in a pay and duty status on or after the day your employing office receives your election. If the employee is not in a pay and duty status on the date the employing office receives the election, the coverage becomes effective the next date that the employee is in pay and duty status. Option C insurance coverage is effective on the day your employing office receives your election without regard to pay and duty status.
Waiver/Cancellation of Insurance
When you first become eligible for FEGLI coverage, you must specifically waive Basic insurance if you do not want it. If you do not want any Optional insurance, you do not have to do anything. Any Optional insurance you do not elect is automatically waived.
You may cancel your Basic and/or Optional insurance coverage at any time, unless you have assigned your insurance. When you cancel Basic insurance, you automatically cancel all Optional insurance. Canceling Optional insurance has no effect on Basic insurance.
The cancellation is effective on the last day of the pay period in which you file it with your employing office. As an employee your employing office maintains your FEGLI records. OPM does not have records for employees. OPM's Retirement Services maintains records for annuitants and for compensationers who receive worker's compensation for more than one year.
Cancellation of Waiver by Providing Medical Information
You may cancel your waiver and obtain Basic insurance and/or Options A and B if at least one year has passed since the effective date of the waiver and you provide satisfactory medical information at your own expense. You must have Basic insurance to elect Optional insurance.
If you want to cancel a waiver, you must be an eligible employee and you must complete a Request for Insurance (SF 2822). Your agency will complete part of the form first. Then you complete your section. Your physician or other medical professional will examine you and complete the rest of the form.
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