Federal Employees Group Life Insurance (FEGLI) Rates

The Federal Employees’ Group Life Insurance (FEGLI) program is the largest group life insurance program in the world, covering over 4 million federal employees and retirees, as well as many of their family members. This article discusses rates for various types of coverage under the program.

Most federal employees are eligible for FEGLI coverage. FEGLI provides group term life insurance. As such, it does not build up any cash value or paid-up value. It consists of Basic life insurance coverage and three options. In most cases, if you are a new federal employee, you are automatically covered by Basic life insurance and your payroll office deducts premiums from your paycheck unless you waive the coverage.

In addition to the Basic coverage, there are three forms of Optional life insurance you can elect. You must have Basic insurance in order to elect any of the options. Unlike Basic coverage, enrollment in Optional insurance is not automatic — you must take action to elect any of the options.

The cost of Basic insurance is shared between you and the Government. You pay two-thirds of the total cost and the Government pays one-third. Your age does not affect the cost of Basic insurance. You pay the full cost of Optional insurance, and the cost does depend on your age.

The Office of Federal Employees’ Group Life Insurance (OFEGLI), which is a private entity that has a contract with the Federal Government, processes and pays claims under the FEGLI Program.

New FEGLI Rates

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FEGLI Calculator

The FEGLI Calculator allows you to: (1) determine the face value of various combinations of FEGLI coverage; (2) calculate premiums for the various combinations of coverage; (3) see how choosing different Options can change the amount of life insurance and the premium withholdings; and (4) see how the life insurance carried into retirement will change over time. The calculator is located at: http://www.opm.gov/retirement-services/calculators/fegli-calculator/

Cost of FEGLI Basic Insurance

The cost of Basic insurance is shared between you and the Government. You pay two-thirds of the cost, and the federal government pays one-third. Your age does not affect the cost of Basic insurance.
The cost of Basic insurance may change from time to time.  The Office of Personnel Management will announce premium changes prior to their effective date.

Withholdings for FEGLI Basic insurance

Your share of the cost of Basic insurance is $0.15 biweekly for each $1,000 of your Basic Insurance Amount.
This amount must be withheld from your pay for each pay period during which you are in pay status for any part of the pay period. If your Basic coverage becomes effective at any time other than the beginning of the pay period, full withholdings for the entire pay period are required.
Other than Biweekly Pay Periods:  If you are paid on other than a biweekly basis, the amount withheld from your pay must be prorated and adjusted to the nearest one-tenth of one cent.

Government Contribution to FEGLI Basic Insurance

The federal Government’s share of the cost of Basic insurance is an amount equal to one-half of your withholding (or one-third of the total premium). This amount must be contributed for each pay period during which you are in pay status for any part of the pay period.
The Government contribution comes from the appropriation or fund that is used for the payment of your salary. For an elected official, the contribution must come from the appropriation or fund that is available for payment of other salaries in the same office.

FEGLI Basic Insurance Amount

How to calculate your Basic Insurance amount:

• Take your annual rate of basic pay, and
• Round this up to the next higher thousand (if it’s not already an even thousand dollar amount), and then
• Add $2,000.

If you are eligible to continue Basic life insurance coverage as an annuitant or compensationer, your Basic Insurance Amount is the amount in effect at the time your insurance as an employee stops. This is at either your separation from service or after 12 months of non-pay status, whichever is earlier.

Minimum Basic Insurance Amount

The minimum Basic Insurance Amount is $10,000. Any employee whose annual pay is less than $8,000 has $10,000 in Basic insurance.

Age Multiplication Factor

Employees under age 45 covered for Basic insurance automatically have extra coverage without paying any additional premium. This extra coverage increases the amount of Basic insurance payable at the time of your death, if you die before age 45.
To determine the amount of the extra benefit, multiply your Basic Insurance Amount by the appropriate age multiplication factor as follows:

Your Age at Death	Age Multiplication Factor
35 or under	2.0
36	1.9
37	1.8
38	1.7
39	1.6
40	1.5
41	1.4
42	1.3
43	1.2
44	1.1
45 and over	1.0

 

 

Premium Rates for Different Types of Coverage

Premium rates under the FEGLI program depend on the type of coverage you elect.

 

Basic Life

Option A – Standard Coverage
Age Monthly Rate

 

Option B – Additional Coverage

* For eligible annuitants who elect “No Reduction” for Option B, coverage is not free for age 65+. These annuitants must continue to pay premiums as shown below for No Reduction Option B coverage.

Option C — Family Rates**

*For eligible annuitants who elected No Reduction for Option C, coverage is not free for age 65+. These annuitants must continue to pay premiums, as shown below:

**1 Multiple = $5,000 for a spouse or $2,500 for each eligible dependent child.