Q. What is a conversion policy? Who is eligible to convert their FEGLI benefit?
A. A conversion policy is an individual (non-group) life insurance policy that you are entitled to when your group life insurance ends, unless it ended because you voluntarily cancelled it.
If you have assigned your insurance, the assignee(s), rather than you, is (are) entitled to convert your Basic, Option A, and Option B coverage. You may still convert your Option C coverage.
Under the conversion privilege, you may convert all or any part of your Basic and Optional insurance to an individual policy. No medical examination is required.
The individual policy will be a cash-value type of life insurance policy. This means it will build cash value that you can borrow against. You cannot convert to term insurance.
Q. How will I know I am eligible to convert?
A. Your employing office must give you notice of the loss of group coverage and the right to convert whenever your insurance terminates under conditions that allow you to convert to an individual policy. The form used for this purpose is the Notice of Conversion Privilege (SF 2819).
Q. If I receive an SF 2819 (Notice of Conversion Privilege), do I have to convert my insurance?
A. No. If you receive an SF 2819, that means that you are eligible to convert your insurance, but you don't need to — the choice is yours. IF you qualify to carry your coverage into retirement, you may want to do that and not convert. Just because you receive an SF 2819 does not mean that you do not qualify to carry your coverage into retirement. All employees whose current coverage as an employee is terminating (other than by voluntary cancellation) receive a copy of that form — whether or not they qualify to carry coverage into retirement.
Q. What happens if my agency doesn't give me an SF 2819? Can I still convert my FEGLI coverage?
A. Yes. Your agency is supposed to give you notice and the loss of group coverage and the right to convert when your insurance ends. We know, however, that sometimes this does not happen. If your agency does not give you the conversion notice, you can request a conversion by writing directly to the Office of Federal Employees' Group Life Insurance (OFEGLI) at P. O. Box 2627, Jersey City, NJ 07303-2627. The request must be postmarked within 31 days after the date of the terminating event.
Conversions are effective at the end of the 31-day extension of coverage.
If you are unable to mail the request within 31 days, you may qualify for a belated election. You must mail the request to OFEGLI within six months after the date you first became eligible to convert. Your request must show that you were not notified of the loss of coverage and the right to convert or you weren't able to convert for reasons beyond your control.
Belated conversions are made retroactive to the end of the 31-day extension of coverage and you must pay the retroactive premiums.
Q. What insurance companies will accept conversion of FEGLI coverage?
A. When you are ready to convert your coverage, you may request a list of eligible insurance companies from the Office of Federal Employees' Group Life Insurance at P. O. Box 2627, Jersey City, NJ 07303-2627 or 1-800-633-4542. You can choose any company on that list.
Q. What is the 31-day temporary extension of coverage?
A. When your life insurance terminates, except when you stop it voluntarily by cancellation, the coverage automatically continues for 31 days after the terminating date. You do not pay any premiums during these 31 days.
Q. Can I convert Option C when I no longer have any eligible family members?
A. No. You cannot convert Option C when family members lose eligibility.
You can convert Option C only when you separate from service. If you do not want to convert the coverage when you separate, your family members covered under Option C are eligible to convert their coverage to an individual policy. Eligible family members can also convert their coverage upon your death. They can ask your human resources office for a Notice of Conversion Privilege (SF 2819).
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