As a federal employee, your Federal Employees Group Life Insurance (FEGLI) coverage is a key part of your benefits package, and making the right FEGLI life insurance election is essential for protecting your income and your family. This program offers three standard plans—Basic, Option A, and Option B—each with different cost and coverage structures. You generally enroll during an open season period or when you meet a qualifying event, such as retirement or separation from service. This guide explains how FEGLI elections work, the differences between plans, and how to choose the coverage level that aligns with your long-term financial goals.
- What Is FEGLI and How Does Election Work?
- Key FEGLI Election Plans at a Glance
- Open Season and Your Annual Election Opportunity
- Steps to Review Your FEGLI Election During Open Season
- Qualifying Events That Trigger an Election Change
- Common Qualifying Events That Affect FEGLI Elections
- How to Choose the Right FEGLI Coverage for Your Situation
- Quick Comparison of Common FEGLI Election Strategies
- Plan Conversions and Your Long-Term Coverage Strategy
- Common Mistakes to Avoid When Electing FEGLI Coverage
- Final Considerations for Your FEGLI Election
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What Is FEGLI and How Does Election Work?
The Federal Employees Group Life Insurance (FEGLI) program, administered by the Office of Personnel Management (OPM), provides low-cost group life insurance to eligible federal employees, including those in the Postal Service and other participating agencies. Your election determines which plan(s) you are covered under and how much of your premiums are split between you and the government. Coverage can be automatic upon eligibility, but you must make an active election during an open season or when you experience a qualifying event. Understanding the structure of the plans and the timing of elections helps you avoid gaps in protection and make informed choices for your financial security.
Key FEGLI Election Plans at a Glance
FEGLI offers three primary plans, each designed to meet different coverage needs and budgets. Plan A provides the lowest base coverage, while Plan B allows you to purchase additional coverage in units, and Plan C is typically suited for higher-level coverage needs. Your election determines which plan you are enrolled in by default and which options you can adjust during future open seasons or qualifying events.
| Plan | What It Covers | Typical Cost Structure | When It's Often Used |
|---|---|---|---|
| Plan A | Standard group life coverage up to a basic amount | Low cost, largely subsidized by the government | Automatic basic coverage for most employees |
| Plan B | Additional coverage in increments, based on salary | Employee pays most or all of the cost for extra coverage | When higher total death benefit is desired |
| Plan C | Coverage for executives and higher-paid positions | FEGLI election: Plan C provides options for employers to provide additional coverage for higher-paid positions or executives who require tailored life insurance protection within the federal system. This is typically offered through employer contributions rather than direct employee elections. It is designed to align with higher salary levels and executive benefit structures. Plan C is commonly used in roles where supplemental executive life insurance is needed to meet specific financial planning goals, such as executive retention or key person protection. Coverage amounts and eligibility depend on agency policies and OPM guidelines.Employer-funded supplemental coverage for executives |
Open Season and Your Annual Election Opportunity
Most federal employees have a limited window each year—typically during the fall open season—to review and change their FEGLI life insurance election. During this period, you can choose your default Plan A coverage and how much Plan B coverage you want, based on standard multipliers of your salary. Missing an open season may mean waiting another year or relying on a qualifying event to make changes. Reviewing your current coverage during open season allows you to adjust for life changes such as marriage, new dependents, or increased financial obligations.
Steps to Review Your FEGLI Election During Open Season
- Log into your agency's benefits portal or OPM's employee portal to view your current election.
- Compare your current coverage to your financial needs, including debts, income replacement, and education funding.
- Decide whether to keep, increase, or decrease your Plan A and Plan B coverage.
- Submit your new election through the official form or online system before the deadline.
Qualifying Events That Trigger an Election Change
Outside of open season, certain life events qualify you to make changes to your FEGLI election. These events include retirement from federal service, separation from federal employment, or losing other group coverage. When such an event occurs, you may have a limited window to elect coverage under a new plan or convert to an individual policy. Being aware of qualifying events ensures you do not lose valuable protection and can tailor your coverage to your new circumstances.
Common Qualifying Events That Affect FEGLI Elections
- Retirement from federal service
- Separation from federal employment
- Loss of other group life insurance coverage
- Change in marital or family status as defined by OPM rules
How to Choose the Right FEGLI Coverage for Your Situation
When you make a FEGLI life insurance election, consider your total financial picture, including other life insurance you may hold, outstanding debts, and your family's long-term needs. Plan A provides a baseline of protection at little or no cost to you, which many employees choose to keep simply because it requires no additional payment. If you need more coverage, Plan B allows you to buy additional amounts, though the cost increases with age and the amount of insurance. Evaluating your current coverage against your beneficiaries' needs helps you decide whether to maintain, increase, or reduce your election.
Quick Comparison of Common FEGLI Election Strategies
| Strategy | Description | Typical Cost to Employee | Best For |
|---|---|---|---|
| Basic Only | Keep only Plan A at no additional cost | Low to no cost (government subsidy) | Employees with other life insurance or minimal coverage needs |
| Plan A + Standard Plan B | Add one to three times salary in Plan B coverage | Moderate cost, increases with age and amount | Employees needing income replacement and debt coverage |
| Enhanced Plan B | Maximize Plan B within underwriting and budget limits | Higher cost, may require medical evidence in some cases | Employees with significant dependents or mortgages |
Plan Conversions and Your Long-Term Coverage Strategy
If you leave federal service, you may have the option to convert your group FEGLI coverage to an individual policy without proving insurability. This conversion can be valuable if you have health changes or no longer qualify for group coverage. However, individual policy premiums are typically higher than group rates, so it's important to weigh the cost and benefits. Planning for conversion as part of your overall FEGLI election strategy ensures continuity of protection beyond federal employment.
Common Mistakes to Avoid When Electing FEGLI Coverage
Employees sometimes accept the default Basic coverage without considering whether it is sufficient, or they wait too long to increase coverage until a qualifying event occurs. Others may overestimate how much Plan B they can afford over time and later reduce coverage due to budget constraints. Reviewing your beneficiaries, coverage amounts, and cost each year—especially during open season—helps you avoid these pitfalls and maintain appropriate protection for your family.
Final Considerations for Your FEGLI Election
Your FEGLI life insurance election shapes the financial security of your beneficiaries and should be revisited regularly as your life changes. The combination of automatic Basic coverage, flexible Plan B options, and the opportunity to convert after federal service provides a versatile foundation for life insurance planning. By understanding how elections work, using open season effectively, and aligning your choices with your long-term goals, you can make confident, informed decisions about your federal life insurance protection.