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<b>Don&#8217;t Let FEGLI Kill Your&#8230;</b>

Don’t Let FEGLI Kill Your…

…Budget! This month’s article is a brief overview of FEGLI, the Federal Employee Group Life Insurance programs:


Navigating FEGLI

FEGLI is a suite of optional life insurance coverage available to Federal Employees. There are several coverages available including:

  •  Basic Coverage: (1X salary rounded up to the next $1,000, plus $2,000). Basic has level pricing regardless of age and the Federal Government covers 1/3 of the premium cost.

If you have the Basic Coverage, there are three types of Optional insurance, whose premium differs from the “level pricing” of Basic Coverage. These optional coverages have premium increases based upon age brackets:

  • Option A-Standard, is for an additional $10,000 of life insurance coverage.
  • Option B-Additional, is for additional coverage of 1-5 times annual salary. This is where the gradual increasing premiums at 5 year age brackets can “kill your budget”. See the costs per $1,000 of coverage below:

Optional "B" - Additional Age Brackets

Pricing charts using bi-weekly or monthly rates per $1,000 of coverage may lead people to under-estimate the impact on cost. For example, FEGLI premiums for a Federal employee from age 50 to age 70 (under current FEGLI rates) for a $500K policy will cost a total of $81,250 over 20 years. The same 20 year term coverage from a retail insurer* would have an approximate monthly cost of $124.131 (assuming Standard Plus, Non-Tobacco Rate Class) totaling $29,760, saving $51,490 over the same timeframe. This is how you Save Your Budget!

  • Option C-Family. insures the lives of your spouse and eligible dependent children. It comes in 1, 2, 3, 4, or 5 multiples of coverage. Each multiple is equal to $5,000 for a spouse and $2,500 for each eligible dependent child. See the costs per $1,000 of coverage below:

Optional "C" Family - Additional Age Bracket


FEGLI is a suite of group life insurance options, with the exception of "Basic", which become increasing expensive with each 5 year age bracket. As with any insurance coverage, its purpose is to address risks to your families financial well being. These risks evolve as you age and should be evaluated as part of your periodic financial planning reviews.

*Calculated using the average cost of 5 leading insurance companies as rated A+ by AM Best.