First Published on CompareFEGLI.com
 FEGLI B
asic and Options Reductions After Federal Retirement
One of the many things that kicks in with federal retirement is a reduction in your FEGLI life insurance coverage. It’s important that you understand how the Federal Employees’ Group Life Insurance (FEGLI) Program is designed to reduce the cover for retirees in a phased manner.
- Also Read: Postponed vs Deferred Retirement: Key Differences and Federal Employee Eligibility
- Also Read: 7 Key Pros and Cons of Military Buyback for Federal Retirement Planning
- Also Read: Reduction in Force (RIF) and Benefit Impacts: What Federal Employees Should Know
You must choose what happens at this point. As far as FEGLI Basic life insurance is concerned, you have three options. The first option is a 75 percent reduction that reduces your cover amount by two percent each month until it hits 25 percent of your pre-retirement FEGLI Basic amount. At this point, your FEGLI Basic becomes free (no premiums) and will stay at this level until your death.
The second option is…..Read More
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