§8714d Option to receive “living benefits”

Summary

The Office of Personnel Management must write rules so people with federal group life insurance who are terminally ill can choose a one-time lump-sum "living benefit." A person is "terminally ill" if a doctor says they are expected to live 9 months or less. The lump sum can be the full insurance amount or a part of it in multiples of $1,000. The payment is figured based on a date set by the rules but no later than 30 days after the application is approved. The payment also includes any extra amount needed so the insurer’s cost does not go up. To apply, you must give the proof the rules require, including a doctor’s statement about the 9‑month prognosis. The agency can require a medical exam at no cost to you. The agency’s decision is final and not open to administrative review. If you take the lump sum, no further death benefits are payable unless you took only part of the benefit; then the remaining insurance is cut by the same percentage and rounded to the nearest $1,000. Payroll deductions and contributions stop or are reduced after the payment date. You can still buy optional coverage if you pay its full cost. The choice is final and may be made only once. Certain people cannot choose a partial payment, and the rules must cover a special rule for those age 65.