Pamphlet RI 76-12
Who Receives Benefits Under Your Option C - Family Insurance
If you have Option C - Family insurance, you are
the beneficiary. No designation is permitted under the law. Payment will be made
to you in a lump sum. If you should die after the death of an insured family
member but before payment of your claim, payment will be made to the person (or
persons) to whom your Basic life insurance benefits are payable.
How to File a Claim for Option C - Family Insurance Benefits
If an insured family member (your spouse or eligible child
as described in Option C - Family insurance, page 9) dies, you should call us,
use the Internet, or write to us for the appropriate claim form (Form FE6-DEP).
This form provides complete instructions for filing your claim. (You should not
request this form unless the benefit becomes payable due to the death of an
eligible family member.)
If we are withholding premiums for Option C from your
annuity and you no longer have an eligible family member, you should notify us
so we can stop withholding premiums.
In the event of your death, any eligible family member can
convert his or her own coverage to an individual policy within 31 days after
your death or within 31 days after he or she receives our notice of the right to convert, if later.
Living Benefits
You may elect to receive a lump-sum payment called a
living benefit if you are terminally ill and have a documented medical prognosis
that you are not expected to live more than nine months. Eligible annuitants may elect a full lump-sum payment equal to
their Basic life insurance amount, plus any extra benefit for persons who are
under age 45, that would be in effect nine months after the date the Office of Federal Employees’ Group Life Insurance
(OFEGLI)
receives a completed claim for living benefits. If the life insurance is
reducing, the lump sum will be the reduced amount payable nine months after
OFEGLI receives the completed claim form. Annuitants cannot elect a partial
living benefit payment; this option is available only to employees.
If you have assigned your life insurance coverage, neither
you nor the assignee may elect living benefits. However, if you elected a living benefit, you
may assign any remaining life insurance.
Your living benefits payment will be reduced by a nominal
amount to make up for lost earnings to the Life Insurance Fund because of the
early payment of benefits.
If you receive living benefits after retirement, no Basic
life insurance will be payable after your death. We will stop withholding any
Basic life insurance premiums from your monthly annuity. If you elected living benefits before you retired, the amount of Basic
life insurance payable after your death and the premiums we withhold from your
annuity depend upon the amount of living benefits you received before
retirement.
Your election of living benefits has no effect on the
amount of any optional life insurance you may have. We will continue to withhold
any premiums for optional insurance.
You may contact the Office of Federal Employees’ Group
Life Insurance at 1-800-633-4542 to obtain Form FE-8, Claim for Living
Benefits, to elect living benefits. This form is not available from agencies
or from your retirement system.