What is FEGLI?
Federal Employee Group Life Insurance (FEGLI) is offered to all government employees. Under FEGLI, employees are provided with three kinds of coverage: group term life without a medical exam, accidental death and dismemberment insurance that provides double indemnity protection, and a “living benefit” for terminally ill employees.
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. Federal Educators of America recommends that you request a Benefit Analysis to investigate your current FEGLI coverage and rates as well the cost of continuing coverage.
The Problem
FEGLI is very affordable up to a certain age. Then the rates can almost double every four years based upon your annual salary. It builds NO CASH VALUE, NO LOAN VALUE, or provides you with PAID UP EXTENDED INSURANCE. It is intended as a form of immediate protection in the event of death, dismemberment, or terminal illness. Coverage may be extended, but at a very high cost and with decreasing face amounts.
The Solution
Federal Educators of America recommends that you request a Benefit Analysis to investigate your current FEGLI coverage and rates as well the cost of continuing coverage. Your cost analysis can help you make the right decisions towards retirement. If you plan on keeping your Federal Employee Group Life Insurance, we strongly recommend that you explore your options.