Employees who are put in a nonpay status while on military duty can keep their Federal Employees' Group Life Insurance (FEGLI) coverage for up to 12 months. This coverage is free. At the end of 12 months in nonpay status, the coverage terminates. Employees get a free 31-day extension of coverage and have the right to convert to a nongroup policy.
Employees who separate from service while on military duty are considered to be in a nonpay status for FEGLI purposes. These individuals also can keep their FEGLI coverage for up to 12 months, or until 90 days after their military service ends, whichever date comes first. This coverage is free. At the end of 12 months (or 90 days after military service ends), the coverage terminates. These individuals also get the 31-day extension of coverage and the right to convert.
Being called up to active duty status or being sent to a combat zone does NOT cancel FEGLI coverage. Nor does it automatically make an employee ineligible for accidental death and dismemberment (AD&D) coverage. All FEGLI coverage remains in effect for the period of time described above. If a Federal employee with FEGLI is called-up to active military duty and is killed, "regular" death benefits are payable to the employee's beneficiaries. Accidental death benefits are also payable under Basic insurance (and Option A, if the employee had that coverage) unless the employee was in actual combat (or unless nuclear weapons are being used) at the time of the injury that caused the employee's death. Accidental death benefits are in addition to regular death benefits. Even if accidental death benefits are not payable, regular death benefits ARE payable.
Return to Active Federal Service. When an employee who has been on military duty returns to active Federal service, he or she gets back whatever type(s) of life insurance he or she had before going into nonpay status (as long as the position is not excluded from coverage). The employee does not get an opportunity to elect more coverage unless he or she has been separated from service for at least 180 days.