How can termination of FEGLI coverage affect FEGLI Beneficiaries’ rights?

Employees of the Federal Government are covered by group life insurance called FEGLI.

When they apply for coverage, federal employees are required to complete a Designation of Beneficiary form, identifying an individual as the beneficiary of the life insurance proceeds payable upon their death under the FEGLI policy.

The insurance is valid as long as premiums are paid and the insured remains in the category of eligible participants. If FEGLI coverage is terminated, pursuant to federal law, the previous designation of beneficiary is automatically cancelled thirty-one days after the insurance coverage ends.

Thus, the previous beneficiary ceases to be the designated beneficiary of the FEGLI policy. If the insured whose coverage had been terminated reinstates the policy later, he is required to complete another beneficiary designation form.

What happens if the employee fails to execute a new Designation of Beneficiary form when he reinstates the policy?

Since the previous beneficiary designation under the policy that had been terminated is no longer valid, the FEGLI proceeds will be distributed according to the FEGLI order of precedence outlined in the policy.

For example, if an insured was married at the time of his death, the proceeds will be paid to the widow. If the FEGLI insured was divorced and had children, the proceeds will be paid to the insured’s children.

What is the FEGLI order of precedence if there is no designated beneficiary?

Under the law, if the insured died without designating a specific individual to get the FEGLI benefits, the money will be paid in the following order:

  1. To the beneficiary or beneficiaries designated by the employee in a signed and witnessed writing received before death in the employing office;
  2. If there is no designated beneficiary, to the widow or widower of the employee;
  3. If none of the above, to the child or children of the employee and descendants of deceased children by representation;
  4. If none of the above, to the parents of the employee or the survivor of them;
  5. If none of the above, to the duly appointed executor or administrator of the estate of the employee;
  6. If none of the above, to other next of kin of the employee entitled under the laws of the domicile of the employee at the date of his death;

Do I need a FEGLI attorney for settlement of a life insurance claim?

If your FEGLI claim has been denied, you should consult a FEGLI attorney to know your options. If the insurance company filed an interpleader, you may need an attorney to represent you in court.

A FEGLI claim denied due to termination of FEGLI coverage may be settled with the help of an experienced life insurance lawyer. Most life insurance lawyers work on a contingent fee basis and will not collect a legal fee unless you win your case.

Our FEGLI attorneys will zealously represent you in court, against the insurance company and against competing claimants. Call us now at (888) 510-2212.

Call (888) 510-2212 for a free consultation.