How much is FEGLI basic life?

Asked by: Dr. Corbin Dach  |  Last update: February 11, 2022
Score: 4.3/5 (44 votes)

The cost of Basic Life Insurance is 15 cents bi-weekly or 32.5 cents monthly per thousand; however it is free for postal employees.

Is FEGLI basic a good deal?

Keeping full coverage can become considerably expensive, but if you are suffering from a life-threatening illness, maintaining FEGLI-Basic probably makes a ton of sense. As for reducing it, FEGLI coverage can be cut by 50% for a cheaper price, or slashed by 75%.

How much is FEGLI basic death benefit?

It provides your beneficiaries with a $10,000 death benefit in the event of your death.

How much coverage is basic FEGLI?

Through the Federal Employees' Group Life Insurance (FEGLI) Program, you have several choices in selecting the amount of life insurance that's right for you. FEGLI offers: Basic insurance: equal to the greater of (a) your salary rounded up to the next $1,000 plus $2,000, or (b) $10,000.

Is FEGLI basic free?

15 biweekly for each $1,000 of your coverage. The Federal Government pays the remaining 1/3rd of the cost of Basic insurance. (Basic is free for U.S. Postal Service employees).

FEGLI Basic Life Insurance Basics

45 related questions found

What is FEGLI basic plus option A?

Option A allows any employee who is covered under Basic Insurance to buy an additional $10,000 of coverage. ... You'll have to submit a completed Standard Form 2817, Life Insurance Election, to your personnel office within 31 days of your appointment to a position that provides FEGLI coverage.

Do federal retirees get life insurance?

After age 65, Basic life insurance is free for all retirees. The 50% and No Reduction premiums continue for life.

How is FEGLI payout calculated?

To figure out your BIA, take your current salary and round it up to the nearest $1,000, then add $2,000 to it. This is your Basic Insurance Amount. FEGLI costs 15¢ per $1,000 of your BIA. So if, for example, you have a $84,500 salary, then you have coverage for $87,000.

How is FEGLI paid out?


The employee (or eligible retiree under age 65) pays two-thirds. The rate is $0.15 per $1,000 of coverage biweekly while you are employed. The death benefit is determined by your basic salary rate rounded to the next highest $1,000, plus an additional $2,000.

How much is FEGLI in retirement?

To retain the same insurance value you had when you retired, you will pay $2.5967 per $1,000 per month until age 65, when your premium will drop to $2.25 per $1,000 per month.

What is post retirement basic life insurance premium?

All retirees pay for Basic life insurance until age 65. The premium is the same rate as that for active employees ($0.3250 monthly per $1,000). After age 65, Basic life insurance is free. If you choose the 50% Reduction or No Reduction, you will begin to pay a premium for the extra coverage starting at retirement.

Is FEGLI term or whole life?

FEGLI provides group term life insurance. As such, it does not build up any cash value or paid-up value. ... 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.

Why is FEGLI so expensive?

The primary reason for the rate difference is that the FEGLI program must charge higher rates for healthy applicants to make up for the less healthy applicants. In the private market, such is not the case. The total cost for a $594,000 death benefit in the private market amounts to $67,141.

What is the FEGLI death benefit?

The FEGLI death benefit is a payout to the beneficiary of the life insurance policy, annuity, or pension when the federal employee or retiree passes away.

Can I sell my Fegli life insurance?

FEGLI policies, or Federal Employee Group Life Insurance Coverage, can be sold for cash through a viatical or life settlement.

What is basic life insurance for federal employees?

Unless they waive coverage, most Federal employees have Basic Life Insurance under the Federal Employees' Group Life Insurance Program. Basic Life Insurance is equal to the actual rate of annual basic pay (rounded to the next $1,000) plus $2,000, or $10,000, whichever is greater.

How do I estimate my FERS retirement?

FERS (Immediate or Early)

FERS annuities are based on high-3 average pay. Generally, the benefit is calculated as 1 percent of high-3 average pay multiplied by years of creditable service. For those retiring at age 62 or later with at least 20 years of service, a factor of 1.1 percent is used rather than 1 percent.

How does FEGLI work in retirement?

FEGLI Option A, B and C Coverages in Retirement

Upon reaching age 65 or the month after they retire if they retire after age 65, Option A coverage automatically reduces each month by 2 percent of the pre-retirement amount (2 percent of $10,000 or $200 per month) until it reaches $2,500.

At what age does FEGLI end?

The requirements for continuing your FEGLI life insurance into retirement are explained in the FEGLI Handbook. If you meet the requirements, you must choose what will happen to your Basic when you turn 65 or retire, whichever is later.

What is FEGLI Option B?

FEGLI Option B is essentially term insurance – with a guaranteed renewable five year term. This plan in particular can insure you for as much as 1, 2, 3, 4, or even 5 times your Annual Salary rounded up to the nearest $1,000.

Did FEGLI rates go up in 2021?

ByEd Zurndorfer. Effective October 1, 2021, FEGLI life insurance premium rates will change for some types of coverages. In particular, premium rates for the FEGLI “basic” insurance for employees and annuitants (who elect to retain full “basic” Insurance into and throughout retirement) will increase. ... 1, 2021.

Is federal employee life insurance good?

FEGLI life insurance is great for anyone who may be considered high risk life insurance due to a pre-existing condition. However, for everyone who is healthy, keeping FEGLI past age 50 may not make good financial sense. The good news is you can have both FEGLI and Private life insurance, if that option is best for you.

Does FEGLI have cash value?

No. The FEGLI Program provides group term life insurance. It does not have any cash value and you cannot borrow against your coverage.

Does FEGLI cover funeral expenses?

Yes. OFEGLI can pay FEGLI benefits to a funeral home if that's what the person entitled to the money wants to happen.