FEGLI — Federal Employees' Group Life Insurance

The Federal Employees' Group Life Insurance (FEGLI) program (5 U.S.C. §§ 8701–8716) is the largest group life insurance program in the world, covering approximately 4 million federal employees, retirees, and their family members. Established in 1954 as part of the broader federal employee benefits package, FEGLI provides automatic basic life insurance equal to your annual salary (rounded up to the next $1,000 plus $2,000) at a cost that is partially employer-subsidized — the government pays one-third of the Basic premium. Employees are automatically enrolled when they start federal service (they must affirmatively decline if they don't want it). Beyond Basic coverage, FEGLI offers three Optional coverages: Option A (an additional $10,000), Option B (1–5 multiples of salary), and Option C (coverage for spouse and children). FEGLI is administered by the Office of Personnel Management (OPM) — the agency that oversees the federal civil service — and underwritten by MetLife (the current primary insurer), with premiums deducted from employee pay and deposited into the Employees' Life Insurance Fund.

Current Law (2026)

Legal Authority

• 5 U.S.C. § 8702 — Automatic coverage (employees are automatically enrolled in Basic FEGLI on the date they become eligible; they may waive coverage or elect additional options during enrollment periods)
• 5 U.S.C. § 8704 — Group insurance amounts (sets the Basic Insurance Amount formula — salary rounded up plus $2,000; provides extra benefit for younger employees; specifies Optional coverage amounts)
• 5 U.S.C. § 8705 — Death claims; order of precedence (when a covered employee or retiree dies, benefits are paid in a defined order: designated beneficiary, surviving spouse, children, parents, executor of estate, next of kin)
• 5 U.S.C. § 8706 — Termination of insurance; assignment of ownership (insurance terminates when employment ends, with a 31-day extension and option to convert to an individual policy; employees may assign ownership of their FEGLI policy)
• 5 U.S.C. § 8707 — Employee deductions; withholding (employee's share of premiums is deducted from pay biweekly; premiums are pre-tax for Basic coverage)
• 5 U.S.C. § 8708 — Government contributions (employer pays one-half of the cost attributable to Basic coverage — effectively one-third of the total Basic premium)
• 5 U.S.C. § 8714 — Employees' Life Insurance Fund (premiums and government contributions are deposited into the Fund; OPM uses the Fund to pay claims and administrative costs)

How It Works

Every eligible federal employee is automatically enrolled in Basic FEGLI upon entering federal service. The Basic Insurance Amount (BIA) equals annual salary rounded up to the next $1,000, plus $2,000 — so a $75,400 salary produces a BIA of $78,000. Employees under age 36 receive a double benefit (BIA × 2); the extra benefit gradually phases out between ages 36 and 45, then disappears. Basic coverage costs approximately $0.15 per $1,000 of BIA per biweekly pay period for the employee, with the government paying the other half. Beyond Basic, employees may elect Option A (an additional flat $10,000 at age-based rates), Option B (1× through 5× salary at age-based rates that increase significantly with age), and Option C (family coverage providing $5,000–$25,000 for a spouse and $2,500–$12,500 per eligible child). All optional premiums are 100% employee-paid. The age-based cost structure is FEGLI's most criticized feature: Option B at 5× salary for a 30-year-old might cost $50/month but the same coverage at 60 can cost $500+/month — employees who chose high coverage when young and healthy face sharply increasing costs exactly as they age and the coverage becomes most important.

Federal retirees can continue FEGLI into retirement under FERS (or older CSRS) if continuously enrolled for the 5 years immediately before retirement. Basic coverage is reduced by 2% per month starting at age 65 until it reaches 25% of the pre-retirement BIA (the "75% reduction"), and retirees pay no premiums for this reduced Basic coverage after 65 — the government and Fund absorb the cost. Optional coverages can continue into retirement at full employee cost with similar age-based reductions. FEGLI uses a statutory order of precedence for death benefits: (1) designated beneficiary on file; (2) surviving spouse; (3) children; (4) parents; (5) executor/administrator of estate; (6) next of kin. Keeping your FEGLI beneficiary designation (SF 2823) current is important — it overrides will provisions and ensures benefits reach the intended person.

How It Affects You

State Variations

Implementing Regulations

• 5 CFR Part 870 — Federal Employees' Group Life Insurance Program (66 sections across 11 subparts — the OPM regulations that implement 5 U.S.C. §§ 8701–8716 and define the operational rules for the world's largest group life insurance program):
  • Subpart B — Types and Amount of Insurance (6 sections): Basic Insurance Amount (BIA) is the employee's annual pay rounded to the next $1,000, plus $2,000 (minimum $10,000) (§ 870.202); Option A = $10,000 flat (standard optional); Option B = 1–5 multiples of annual pay (employee's choice); Option C = family coverage (1–5 multiples of a fixed amount for spouse and eligible dependents); accidental death and dismemberment (AD&D) is automatic for Basic and Option A for active employees — not for Option B, Option C, or annuitants (§ 870.206)
  • Subpart E — Coverage (10 sections): details the positions and employment types that are covered; most civilian federal employees are covered automatically; excluded positions include political appointees serving fewer than 6 months, employees on intermittent schedules, and employees in positions excluded by OPM; FEGLI coverage is separate from the Federal Employees Health Benefits program
  • Subpart F — Termination and Conversion (3 sections): coverage terminates when employment ends or the employee enters a non-pay status for 12 months; a 31-day extension of free coverage follows termination during which the employee may convert to an individual policy without a medical exam; conversion rights are permanent and cannot be denied for health reasons — the conversion option is one of FEGLI's most valuable features for employees with health conditions that would make private coverage expensive or unavailable
  • Subpart G — Annuitants and Compensationers (8 sections): retired employees and OWCP compensationers may continue FEGLI coverage; continuation requires 5 consecutive years of enrollment (or coverage from the earliest opportunity) immediately before retirement; Basic coverage is reduced at retirement for annuitants who retire after age 65 at 2% per month until it reaches 25% of the pre-retirement BIA, after which no premium is charged for life — the residual paid-up coverage
  • Subpart H — Order of Precedence and Designation of Beneficiary (3 sections): FEGLI death benefits paid to: (1) designated beneficiary (Form SF 2823); (2) widow/widower; (3) children; (4) parents; (5) estate executor; (6) next of kin; the designation overrides any will; beneficiaries are not subject to probate for designated amounts; employees should update designations after life events
  • Subpart I — Assignments (10 sections): employees may irrevocably assign ownership of all FEGLI coverage to another person or entity (a trustee, a spouse, an estate-planning trust) under a collateral or absolute assignment; after an absolute assignment, the assignee pays premiums, can convert coverage, and receives death benefits; the employing office handles administrative effects of the assignment
  • Subpart K — Living Benefits (3 sections): terminally ill employees certified by a physician may elect a lump-sum Living Benefit equal to all (full Living Benefit) or part (partial Living Benefit, in $1,000 multiples) of their Basic insurance amount, effective July 25, 1995 (§ 870.1101); annuitants and compensationers may elect only the full Living Benefit; after election, the remaining BIA becomes the employee's "post-election BIA"; election is processed through OFEGLI (the insurance carrier office) with physician certification; Living Benefits are income-tax-free under IRC § 101(g)
• 48 CFR 1631 — FEHBP/FEGLI contract cost accounting standards (cost principles for FEGLI carrier contracts)

Pending Legislation

No standalone FEGLI reform bills have been introduced in the 119th Congress. Federal employee benefits provisions appear in broader government operations legislation — see Federal Employee Benefits and Federal Retirement (FERS).

Recent Developments

OPM has modernized FEGLI enrollment through electronic systems, reducing paper-based processing. The age-based premium structure continues to draw criticism — proposals to flatten age-banding or cap premium increases have been discussed but not enacted. The Employees' Life Insurance Fund maintains a healthy balance and has generally operated at a surplus, though low interest rates reduced investment income from the Fund. OPM has expanded the assignment option (allowing employees to irrevocably transfer ownership of their FEGLI policies to another person or trust for estate planning purposes). The automatic enrollment feature ensures high participation — over 90% of eligible employees carry at least Basic coverage.