FEGLI, the Federal Employees’ Group Life Insurance Program, is a program that provides life insurance coverage to Federal and Postal employees and annuitants. It is controlled by Chapter 87 of Title 5, United States Code. The FEGLI regulations are in Title 5 of the Code of Federal Regulations, Part 870. Public Law 83-598 authorized the creation of the FEGLI Program. Links to the law and regulations are on the FEGLI website athttps://www.opm.gov/healthcare-insurance/life-insurance/reference-materials/.
FEGLIA is very complex. In order to understand how FEGLIA affects your particular case, please consult with a FEGLI attorney. Below you can find some important parts of the law that may help consumers understand their FEGLI claims.
A Federal employee is automatically insured on the date he is eligible for FEGLI. If an employee does not wish to participate in FEGLI, he needs to notify his employer in writing. If the employer receives such notice before the employee becomes insured, the insurance will not take effect on the effective date. If the employer receives notice after FEGLI takes effect, it will stop at the end of the pay period in which the notice was received.
A Federal employee’s basic life insurance coverage amount usually equals his annual salary. An employee who is younger than 45 is eligible to be insured for an amount that is equal to the employee’s basic insurance amount (usually the employee’s annual salary) multiplied by the appropriate factor based on the employee’s age. In addition to basic life insurance coverage, FEGLI insureds are eligible for optional coverage and AD&D coverage (group accidental death and dismemberment insurance).
Order of Precedence in Paying Death Claims
The amount of group life insurance and group accidental death insurance in force on an employee at the date of his death is paid in the following order of precedence:
1) To the beneficiary or beneficiaries designated by the employee in a signed and witnessed writing received before death in the employing office or,
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.
If payment has not been made within 4 years after the death of the employee and no claim is pending, the FEGLI amount will escheat to the of the Employees’ Life Insurance Fund.
Termination of FEGLI
FEGLI will terminate on the date a Federal employee separates from the service or 12 months after discontinuance of his pay. There is a 31-day temporary extension of life insurance coverage for conversion to an individual policy of life insurance during which FEGLI coverage will remain in effect.
Retirement and FEGLI
If an employee retires on an immediate annuity and has been insured throughout the 5 years of service immediately preceding the date of the employee’s retirement, his FEGLI coverage, without accidental death and dismemberment insurance, may be continued.
Living Benefits under FEGLI
An insured Federal employee may receive living benefits if he is terminally ill and has a medical prognosis that his life expectancy is 9 months or less. A Federal employee may receive an amount of living benefits that is equal to the full amount of his FEGLI coverage or a portion of it. If the insured receives the total amount of coverage as a living benefit lump sum payment, his beneficiaries will not receive FEGLI benefits after his death. If, however, the employee receives only a portion of the FEGLI benefits as a living benefit in case of a terminal illness, his beneficiaries will receive the remainder of the FEGLI benefits upon the insured’s death.
Short-Term Appointment, Seasonal And Intermittent Employment
The Office of Personnel Management may prescribe regulations necessary to carry out FEGLIA. The regulations of the Office may prescribe and the conditions under which an employee is eligible for coverage. The OPM may exclude an employee on the basis of the nature and type of his employment, such as Short-Term Appointment, Seasonal And Intermittent Employment.
For more information about FEGLI coverage, please call our FEGLI attorneys at 888-510-2212.
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