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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 their family members. It is administered by the Office of Personnel Management (OPM) with policies underwritten by MetLife. 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, birth or adoption of a child.
Who is eligible
- Permanent federal civilian employees in eligible appointments
- Most postal workers
- 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.
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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:
- Round up to the next $1,000 → $75,000
- 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
The 2026 Basic premium is $0.16 biweekly per $1,000 of coverage for the employee. The federal government pays one-third of the full cost, and you pay the other two-thirds. The Basic rate does not change as you age, 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.
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.
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.
2026 Premium Tables by Age Band
Here are the 2026 biweekly rates for active federal employees. Use these to estimate your own cost or to spot-check your Leave and Earnings Statement.
Option A: $10,000 of coverage
| Age band | Biweekly premium |
|---|---|
| Under 35 | $0.20 |
| 35-39 | $0.40 |
| 40-44 | $0.60 |
| 45-49 | $1.20 |
| 50-54 | $2.00 |
| 55-59 | $3.20 |
| 60-64 | $4.40 |
| 65+ | $6.00 |
Option B: per $1,000 of coverage
| Age band | Biweekly rate per $1,000 |
|---|---|
| Under 35 | $0.02 |
| 35-39 | $0.02 |
| 40-44 | $0.03 |
| 45-49 | $0.06 |
| 50-54 | $0.10 |
| 55-59 | $0.18 |
| 60-64 | $0.40 |
| 65-69 | $0.48 |
| 70-74 | $0.86 |
| 75-79 | $1.80 |
| 80+ | $2.88 |
Option C: per multiple (1 multiple = $5,000 spouse + $2,500 per child)
| Age band | Biweekly premium per multiple |
|---|---|
| Under 35 | $0.20 |
| 35-39 | $0.46 |
| 40-44 | $0.72 |
| 45-49 | $1.28 |
| 50-54 | $2.00 |
| 55-59 | $3.60 |
| 60-64 | $5.20 |
| 65+ | $7.80 |
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. A federal employee with $500,000 of Option B at age 62 would pay roughly $200 every two weeks, or $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 at retirement.
The three Basic reduction elections
| Election | What happens after age 65 | Cost in retirement |
|---|---|---|
| 75% Reduction | Coverage drops 2% per month until it reaches 25% of the original BIA | Same rate as active employees until 65, then free for life |
| 50% Reduction | Coverage drops 1% per month until it reaches 50% of the original BIA | Extra premium until 65, then $0.75 per $1,000 monthly for life |
| No Reduction | Full BIA stays intact for life | Highest premium until 65, then $2.25 per $1,000 monthly for life |
If you do not file an election form, OPM automatically defaults you to the 75% reduction option.
A retirement math example
Take a retiree with $77,000 of Basic coverage:
- 75% reduction: Coverage shrinks to $19,250 by about age 67. Premiums stop entirely.
- 50% reduction: Coverage stays at $38,500 for life. Lifetime cost after 65 ≈ $58 per month forever.
- No reduction: Coverage stays at $77,000 for life. Lifetime cost after 65 ≈ $173 per month forever.
For Option B and Option C, you can elect "Full Reduction" (coverage drops to zero over 50 months starting at age 65) or "No Reduction" (you pay full age-band premiums for life).
FEGLI Open Season and Enrollment Changes
Unlike the Federal Employees Health Benefits (FEHB) program, FEGLI does not have an annual open season. Per OPM, "FEGLI life insurance open seasons are infrequent. None are currently scheduled." The most recent government-wide FEGLI open season took place in September 2016.
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
You can decrease or cancel FEGLI coverage at any time without a QLE by filing form SF-2817 with your HR office.
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.
FEGLI vs. private term life
Private term policies lock in a level premium for 10, 20, or 30 years. A healthy 35-year-old non-smoker can often buy $500,000 of 30-year term for $30 to $50 per month, with the same rate from age 35 to 65. Option B at that same coverage would start cheap but cost over $1,000 per month by age 70. Learn more about how term life insurance pricing works before making a switch.
FEGLI vs. whole life insurance
Whole life is permanent coverage that builds cash value. It costs 5 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, comparing whole life insurance quotes can show whether the higher cost makes sense for your situation.
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.
- Replace Option B with private term before age 50 if you are healthy. Lock in 20-30 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.
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. 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.
How much does FEGLI Basic insurance cost?
In 2026, FEGLI Basic costs $0.16 biweekly per $1,000 of coverage for the employee, plus a one-third government contribution. A federal employee with $77,000 of Basic coverage would pay about $12.32 every two weeks, or roughly $320 per year. The rate is the same regardless of age, which is unique among FEGLI components.
When is the next FEGLI open season?
There is no FEGLI open season currently scheduled. OPM has confirmed that open seasons for FEGLI are rare, and the last one occurred in September 2016. To enroll or increase coverage outside an open season, you generally need a Qualifying Life Event or must pass a medical exam.
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 (modest lifetime premium), or no reduction (highest lifetime premium). Option B and Option C also offer Full Reduction or No Reduction 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.