FEGLI Guide: Federal Employee Life Insurance Options, Costs, and Strategies

What FEGLI Is and Who It Covers

The Federal Employees' Group Life Insurance program is the largest group life insurance plan in the world, covering more than 4 million federal employees, retirees, and many of their family members. It is administered by the Office of Personnel Management (OPM), with policies underwritten by MetLife through the Office of Federal Employees' Group Life Insurance (OFEGLI). FEGLI is strictly group term life insurance, which means it pays a death benefit but does not build cash value or paid-up value the way a permanent policy would.

Most permanent federal employees are automatically enrolled in Basic coverage on their first day of work unless they actively waive it. The three optional layers (Option A, Option B, and Option C) are not automatic and must be elected within 60 days of becoming eligible or during a Qualifying Life Event (QLE) such as marriage, divorce, or the birth or adoption of a child.

Who is eligible

• Permanent federal civilian employees in eligible appointments
• Most postal workers (USPS pays 100% of the Basic premium for postal employees)
• Members of certain federal commissions and boards
• Retirees who carried FEGLI for the required period before retirement

Temporary and intermittent employees, contractors, and some excepted-service positions are generally not eligible. If you are comparing FEGLI to workplace coverage in the private sector, our overview of group life insurance basics is a helpful primer.

How FEGLI Basic Coverage Is Calculated

FEGLI Basic is the foundation of your coverage, and the math is simple once you see it. Your Basic Insurance Amount (BIA) equals your annual basic pay rounded up to the next $1,000, plus $2,000. If the calculation comes out below $10,000, the minimum BIA is $10,000.

A quick example

If your annual basic pay is $74,250:

1. Round up to the next $1,000 → $75,000
2. Add $2,000 → $77,000 of Basic coverage

Basic also includes an Extra Benefit that effectively doubles the BIA for employees under age 36, then phases out by 10% per year between ages 36 and 45.

Basic premiums and the government contribution

Per OPM's official premium table, the total Basic rate is $0.2250 biweekly per $1,000 of coverage. The federal government pays one-third of that cost ($0.0750 per $1,000), and the employee pays the remaining two-thirds, which comes out to $0.15 biweekly per $1,000 of Basic coverage in 2026. That works out to roughly $0.3250 per month per $1,000 for the employee share. The Basic rate does not change as you age while you are an active employee, which is one of the strongest reasons most planners recommend keeping it.

FEGLI Options A, B, and C Explained

Once Basic is in place, you can layer on three optional coverages. Each one has a very different structure, and the cost differences become dramatic over time.

Option A: Standard

Option A is a flat $10,000 of additional coverage. You pay the full premium with no government contribution. Rates rise in 5-year age bands and get steep quickly.

Option B: Additional

Option B is the heavy hitter. You can elect 1, 2, 3, 4, or 5 multiples of your annual basic pay (rounded up to the next $1,000). A federal employee earning $101,000 who elects 5 multiples would carry $505,000 of Option B coverage. The premium is charged per $1,000 of coverage and increases sharply in 5-year age bands. Because the 2026 federal pay raise pushes many salaries into a higher $1,000 rounding tier, some employees will see their Option B premium tick up automatically at the start of the year even though OPM has not changed the underlying rate table since October 2021.

Option C: Family

Option C covers your spouse and eligible children. Each "multiple" provides $5,000 for your spouse and $2,500 for each eligible child under age 22 (or a disabled adult child). You can elect 1 to 5 multiples, so the maximum family coverage is $25,000 on a spouse and $12,500 per child. If your family situation is complex, our guide to dependent life insurance for spouse and child coverage explains how private-market options stack up.

2026 Premium Tables by Age Band

Here are the current 2026 biweekly rates for active federal employees, based on OPM's premium schedule that took effect October 1, 2021 and remains in force for 2026. Use these to estimate your own cost or to spot-check your Leave and Earnings Statement.

Option A: $10,000 of coverage

Option B: per $1,000 of coverage

Option C: per multiple (1 multiple = $5,000 spouse + $2,500 per child)

Why Option B becomes painful after 60

Look at the jump from age 55-59 to 60-64 on Option B: the rate more than doubles from $0.18 to $0.40 per $1,000 biweekly. A federal employee with $500,000 of Option B at age 62 would pay roughly $200 every two weeks, or about $5,200 per year. At age 75, that same $500,000 would cost over $46,000 per year. That is the trap many federal retirees fall into without realizing it. Comparing this against a level term life insurance policy often reveals huge savings for healthy retirees.

Bringing FEGLI Into Retirement

To carry FEGLI into retirement, you must have been enrolled for at least the 5 years immediately preceding retirement (or since the first opportunity you had to enroll). For Basic coverage, you choose one of three reduction elections by filing form SF-2818 at retirement.

The three Basic reduction elections

If you do not file an election form, OPM automatically defaults you to the 75% reduction option. The reductions and premium changes only begin at age 65 or 12 months after retirement, whichever is later.

A retirement math example

Take a retiree with $77,000 of Basic coverage:

• 75% reduction: Coverage shrinks to about $19,250 by age 68. Premiums stop entirely at 65.
• 50% reduction: Coverage stays at $38,500 for life. Cost after 65 = 77 × $0.75 = about $58 per month for life.
• No reduction: Coverage stays at $77,000 for life. Cost after 65 = 77 × $2.25 = about $173 per month for life.

For Option B and Option C, you can elect "Full Reduction" (coverage drops to zero over 50 months starting at age 65, then free) or "No Reduction" (you keep the full death benefit but pay age-banded premiums for life that can climb well past $6 per $1,000 per month at age 80).

FEGLI Open Season and Enrollment Changes

Unlike the annual Federal Benefits Open Season for FEHB and FEDVIP, FEGLI does not have a regular open season. OPM's FAQ confirms that FEGLI open seasons are infrequent and none are currently scheduled, so there is no FEGLI open season planned for 2026 or 2027. The most recent government-wide FEGLI open season took place in September 2016, and the one before that was in 2004.

Outside of an open season, you can only add or increase coverage by:

• Experiencing a Qualifying Life Event (marriage, divorce, birth or adoption of a child, etc.) within 60 days
• Submitting to a physical exam and being approved by OFEGLI (using form SF-2822)

You can decrease or cancel FEGLI coverage at any time without a QLE by filing form SF-2817 with your HR office. Just remember that reversing that decision usually requires medical underwriting or waiting for a rare open season, so plan carefully.

FEGLI vs. Private Term and Whole Life Insurance

The biggest question for most federal employees is whether to keep stacking FEGLI options or shop the private market. Here is how the pieces stack up in 2026.

FEGLI vs. private term life

Private term life insurance policies lock in a level premium for 10, 20, or 30 years. Based on 2026 rate data, a healthy 35-year-old non-smoker can buy $500,000 of 20-year term for roughly $25 to $30 per month, with the same rate from age 35 to 55. A healthy 50-year-old can still find $500,000 of 20-year term for around $110 to $140 per month. Option B at those same coverage amounts starts cheap in your 30s but climbs past $1,000 per month by age 70. Learn more about how life insurance rates are calculated before making a switch.

FEGLI vs. whole life insurance

Whole life is permanent coverage that builds cash value. In 2026 it costs 8 to 15 times more than equivalent term coverage but never expires and can be a useful estate planning tool. FEGLI offers nothing comparable, since it is purely term coverage with no cash value. If you want a permanent death benefit for estate or final expense planning, a separate whole life or IUL policy is worth comparing.

A decision framework

• Keep FEGLI Basic in nearly every case. The government subsidy and level rate make it a bargain.
• Drop Option A if you can qualify for private coverage. The rate gets steep after 55 and $10,000 is too small to matter for most families.
• Replace Option B with private term insurance before age 50 if you are healthy. Lock in 20 to 30-year level premiums while rates are low.
• Re-evaluate Option C if your children are grown. The maximum spouse benefit of $25,000 may not justify the rising cost past age 60.

If you are also weighing workplace coverage from a spouse's employer, our comparison of employer life insurance vs individual policies walks through the trade-offs, and our overview of life insurance coverage options covers the broader menu.

Frequently Asked Questions

Is FEGLI worth it for federal employees?

FEGLI Basic is almost always worth keeping because the federal government pays one-third of the cost and the premium does not rise with age for active employees. The optional layers (A, B, and C) are often a poor value past age 50 because premiums increase steeply every 5 years. Most planners recommend keeping Basic, then comparing private term life insurance for any additional coverage you need.

How much does FEGLI Basic insurance cost in 2026?

In 2026, FEGLI Basic costs $0.15 biweekly per $1,000 of coverage for the employee, plus a one-third government contribution that brings the total premium to $0.225 per $1,000. A federal employee with $77,000 of Basic coverage would pay about $11.55 every two weeks, or roughly $300 per year. The rate is the same regardless of age while you are actively employed, which is unique among FEGLI components.

When is the next FEGLI open season?

There is no FEGLI open season currently scheduled for 2026 or 2027. OPM has confirmed that open seasons for FEGLI are rare, with the last one occurring in September 2016 and the one before that in 2004. To enroll or increase coverage outside an open season, you generally need a Qualifying Life Event or must pass a medical exam through OFEGLI.

What happens to FEGLI when I retire?

To carry FEGLI into retirement, you must have been enrolled for the 5 years immediately preceding your retirement date. For Basic coverage, you choose between a 75% reduction (free after age 65), 50% reduction ($0.75 per $1,000 per month for life after 65), or no reduction ($2.25 per $1,000 per month for life after 65). Option B and Option C also offer Full Reduction (free after 65) or No Reduction (age-banded premiums for life) elections.

Can I cancel or reduce my FEGLI coverage at any time?

Yes. You can decrease or cancel any portion of your FEGLI coverage at any time by filing form SF-2817 with your agency's HR office. You do not need a Qualifying Life Event to cut coverage. Just remember that once you cancel, getting it back generally requires a medical exam or waiting for a rare open season, which is why many advisors recommend having private term coverage in place before you cut FEGLI Option B.