Types and Amounts of Insurance
KIND OF INSURANCE
Federal Employees' Group Life Insurance (FEGLI) is group term life insurance coverage. It does not build up a cash or paid-up value. You cannot obtain a loan by borrowing from this insurance.
FEGLI provides coverage wherever you are, not just when you are at work. FEGLI benefits are payable regardless of cause of death.
TYPES OF INSURANCE
There are two types of life insurance under the FEGLI Program: Basic and Optional.
There are three types of Optional insurance: Option A-Standard, Option B-Additional, and Option C-Family.
AMOUNT OF BASIC INSURANCE
Basic Insurance Amount (BIA)
Your Basic Insurance Amount (BIA) is based on your actual current pay.
To determine your BIA:
- Take your annual rate of basic pay; and
- Round it up to the next even $1,000 (if it is not already an even thousand dollar amount); and
- Add $2,000.
Example
Carlos has an annual salary of $48,586. Round that up to $49,000. Then add $2,000. His Basic Insurance Amount is $51,000.
See the Table of Basic Insurance Amounts.
Your BIA automatically changes whenever your pay changes enough to move you to a higher or lower thousand dollar amount.
If you are eligible to continue Basic life insurance coverage as an annuitant or compensationer, your BIA is the amount in effect at the time your insurance as an employee stops. Your insurance as an employee stops either at your separation from service or your completion of 12 months in nonpay status, whichever is earlier.
Minimum and Maximum BIA
The minimum amount of Basic insurance is $10,000. Any employee whose annual pay is less than $8,000 has $10,000 in Basic insurance, even if the employee is part-time. Exception: If you elected a partial living benefit, it's possible that your remaining BIA may be less than $10,000.
There is no maximum BIA. However, if your salary is "capped" by law, the amount of your Basic insurance is based on the capped amount, the amount you are actually being paid. It is not based on the amount your pay would be without the cap.
Extra Benefit/Age Multiplication Factor
If you are under age 45 and you are covered under Basic insurance, you automatically have extra coverage without paying any additional premium. This Extra Benefit increases the amount of Basic insurance payable at the time of your death, if you die before age 45.
To determine the amount of the Extra Benefit, multiply your BIA by the appropriate age multiplication factor as follows:
| Your Age at Death |
Age Multiplication Factor |
| 35 or under |
2.0 |
| 36 |
1.9 |
| 37 |
1.8 |
| 38 |
1.7 |
| 39 |
1.6 |
| 40 |
1.5 |
| 41 |
1.4 |
| 42 |
1.3 |
| 43 |
1.2 |
| 44 |
1.1 |
| 45 and over |
1.0 |
Example
Clara dies at age 40, with an annual salary of $57,126. Her BIA is $60,000. The age multiplication factor is 1.5. The amount of Basic life insurance payable is $90,000 ($60,000 x 1.5).
Living Benefit Post-Election BIA
The post-election BIA is the amount of Basic insurance left after you elect a living benefit.
If you elect a full living benefit, your post-election BIA is $0.
If you elect a partial living benefit, you still have some Basic insurance left. OFEGLI provides the post-election BIA on the FE-8C Explanation of Benefits that is sent to your employing agency. OFEGLI determines this amount by taking your BIA on the date OFEGLI receives your completed living benefit application and reducing it by a percentage. This percentage represents the amount of your partial living benefit payment, compared to the amount you could have received if you had elected a full living benefit. The amount that is left is rounded up or down to the nearest multiple of $1,000. (If the amount is midway between multiples, it is rounded up to the next higher multiple.)
Your post-election BIA cannot change, even if your salary increases or decreases.
If you elect a partial living benefit and are under age 45 when you die, OFEGLI will multiply your post-election BIA by the Extra Benefit age factor that was in effect on the date OFEGLI received your completed living benefits application.
ANNUAL RATES OF BASIC PAY
Determination
Your annual pay is your annual rate of basic pay as fixed by law or regulation. If your pay is "capped"
by law, your annual pay for FEGLI purposes is the capped amount, the amount you are actually being paid.
Example:
As an example if an individual's current salary is $125,078 and the individual receives authorized premium pay of 25 Percent or $31,259.50, the total would be $156,347.50. However, if the salary is capped at $143,471, then FEGLI is based on the capped amount of $143,471. The FEGLI BIA would then be $146,000.
Included
The following are included in annual pay:
- Interim geographic adjustments and locality-based comparability payments (i.e. locality pay), as provided by Pub. L. 101-509;
- Night differential pay for wage employees;
- Environmental differential pay for employees exposed to danger or physical hardship;
- Tropical differential pay for citizen employees in Panama;
- Special pay adjustments for law enforcement officers;
- Premium pay for standby duty under 5 U.S.C. 5545(c)(1)*;
- Premium pay for administratively uncontrollable overtime under 5 U.S.C. 5545(c)(2) for law enforcement officers, as defined under 5 U.S.C. 8331(20) and 5 CFR 831.902 and 842.802*;
- Availability pay for criminal investigators under 5 U.S.C. 5545a*;
- Bonuses for physicians and dentists of the Department of Veterans Affairs under Pub. L. 96-330;
- Premium pay for overtime inspectional service for customs officers, as provided by Pub. L. 103-66; and
- Straight-time pay for regular overtime hours for firefighters, as provided in 5 U.S.C. 5545b and 5 CFR part 550, subpart M.
*If your annual pay includes this, your annual pay is determined by multiplying your annual rate of basic pay by the applicable percentage factor.
Not Included
The following are not included in annual pay:
- Foreign post differential for wage employees with the exception of wage employees in Guam who were recruited from outside Guam and are paid a recruitment and retention incentive;
- Night differential pay and foreign or nonforeign post differential pay of General Schedule employees;
- Bonuses, allowances, overtime, holiday, and military pay not listed above as included;
- Premium pay authorized certain air traffic controllers under Pub. L. 97-276;
- Lump-sum payments for accrued leave;
- Supervisory differentials;
- Retention allowances; and
- Physicians' comparability allowances.
Hourly, Daily, and Similar Rates
To convert a pay rate of other than annual salary to an annual rate, multiply the pay rate by the number of the pay intervals worked in a 52-week work year.
Example
Dave is paid $18.89 an hour and works 2,087 hours per year. His annual pay is $39,423 ($18.89 x 2,087).
If part of your basic 40-hour week is paid at an overtime rate, your basic pay is determined at your base rate for 40 hours. The overtime rate is not counted toward your basic pay for life insurance purposes.
Example
Dottie is paid $19.02 an hour, works 2,087 hours per year, and is assigned a workweek of four 10-hour days. She is paid $28.53 per hour for two hours of each 10-hour day. Since her overtime hours are part of the 40-hour week, they are counted at the base rate, not the overtime rate. Her annual pay is $39,695 ($19.02 x 2,087).
Part-Time Rates
If you are a part-time employee, your annual pay is your basic pay applied to your tour of duty on record (as shown on your most recent Standard Form 50 Notification of Personnel Action or equivalent document) in a 52-week work year.
Example
The annual salary for Ernest's position is $48,638, and Ernest works 24 hours per week. His annual pay for FEGLI purposes is $29,183. ($48,638 ÷ 52 weeks ÷ 40 hours x 24 hours x 52 weeks).
Piecework Rates
If you are an employee on piecework rates, your annual pay is your total basic earnings for the previous calendar year, not counting premium pay for overtime or holidays.
Whenever the piecework rate changes, your annual pay is adjusted by applying the percentage of increase or decrease in rate.
If you had leave without pay during the year, your annual pay is determined by dividing the year's earnings (or adjusted earnings) by the number of days for which you were paid (days worked plus leave with pay); this gives the average daily rate. This average daily rate is multiplied by 260.
Example
Erica's 2005 earnings were $37,489 and she was paid for 190 days. Her average daily rate is $197.31 ($37,489 ÷ 190). Her 2006 annual pay for FEGLI purposes is $51,301 ($197.31 x 260).
If you are a new employee, your first year's annual pay for life insurance purposes is the average earned or adjusted annual basic pay during the previous calendar year for piecework employees doing similar work in your group, subject to any further adjustment of the average during the first year.
Multiple Rates - Regular Schedule
If you are regularly scheduled to work at different pay rates (such as day and night rates), your annual pay is the weighted average of the rates at which you are paid, projected to an annual basis. A regular schedule can exist even if your schedule varies within a year or even within a pay period.
Example
Franklin is paid $14.92 per hour on a day shift and $18.37 per hour on a night shift and is regularly scheduled to work eight months on day shift and four months on night shift. Multiply $14.92 by 1,391 hours (2,087 hours ÷ 12 months x 8 months) and $18.37 by 696 hours (2,087 hours ÷ 12 months x 4 months). Franklin's annual pay is $33,539.
Multiple Rates - No Regular Schedule
If you work at different pay rates, but not on a regular schedule, your annual pay is the annual rate you were receiving at the end of the pay period. In the event of your death or dismemberment, it is the annual rate you were receiving at the time of your death or accident.
The employing office will determine the amount of insurance and withholdings for multiple rate employees with no regular schedule at the end of each pay period.
Example
Francesca does not work a regular schedule. During the latest biweekly pay period, she worked 50 hours on the day shift at $14.47 per hour and 30 hours on the night shift at $16.96 per hour. Her annual pay at the end of this pay period is $32,040 ([$14.47 x 50 hours x 26 pay periods] + [$16.96 x 30 hours x 26 pay periods]).
Part-Time Flexible Schedule
If you hold more than one appointment, of which at least one is a part-time flexible schedule appointment in the Postal field service, your Basic and Option B insurance amounts are based on the higher of your pay rates.
Intermittent Employment Rates
If you are a non-Postal intermittent employee (a non-full time employee with no prearranged regularly scheduled tour of duty), your annual pay is the annual rate you received at the end of the pay period. In the event of your death or dismemberment, it is the annual rate you were receiving at the time of your death or accident.
The employing office must determine the amount of insurance and withholdings for non-Postal intermittent employees at the end of each pay period.
For FEGLI purposes, during pay periods in which you are not scheduled to work, you are considered to be in nonpay status. "If you are in a nonpay status for 12 consecutive months, your FEGLI coverage terminates, with a 31-day extension of coverage and the right to convert. If you return to pay and duty status, your coverage is automatically reinstated."
Note: If you are an intermittent employee, you are excluded from FEGLI coverage by regulation, except when your intermittent employment follows, with a break in service of no more than three days, a position in which you were insured and to which you are expected to return.
Example
Greg is an intermittent employee and is paid $17.84 per hour. His annual rate of basic pay fixed by law is therefore $37,232 ($17.84 x 2,087 hours). If Greg works only two days (16 hours) during a particular biweekly pay period, his annual rate of pay for insurance purposes for that pay period is $7,421 ($17.84 x 16 x 26). (However, he would be covered for the minimum $10,000 of Basic insurance.)
Certifying the Amount of Insurance When There Is No Regularly Scheduled Tour of Duty
When you do not have a regularly scheduled tour of duty, upon your death, your employing office will base its certification of the amount of insurance upon the number of hours you worked in the last full pay period during which you worked.
Example
Gail, an intermittent employee earning $16.72 per hour, dies. During the last full pay period before her death, she did not work. During the previous pay period, she worked 64 hours. The amount of Basic insurance the employing office would certify is $30,000 ($16.72 x 64 hours x 26 pay periods = $27,822, rounded to the next $1,000 = $28,000, plus $2,000 = $30,000).
AMOUNT OF OPTIONAL INSURANCE
Option A-Standard
Option A coverage is $10,000. There is no Extra Benefit if you are under age 45.
Option B-Additional
Option B coverage comes in 1, 2, 3, 4, or 5 multiples of your annual pay (after your pay is rounded up to the next even thousand). It does not include the extra $2,000 added for Basic insurance and does not include an Extra Benefit.
Example
Homer earns $52,578. His BIA is $55,000. He elected 3 multiples of Option B coverage. Each multiple is worth $53,000.
The amount of your Option B coverage automatically changes whenever your pay changes enough to move you to a higher or lower thousand dollar amount.
If you are eligible to continue Option B coverage as an annuitant or compensationer, the amount of your Option B is the amount in effect at the time your insurance as an employee stops. Your insurance as an employee stops either at your separation from service or your completion of 12 months in nonpay status, whichever is earlier.
There is no minimum amount of Option B coverage. This is different than Basic coverage. Option B coverage for an employee whose annual pay is less than $8,000 is calculated on the actual salary, not the minimum Basic coverage amount.
There is no maximum Option B amount. However, if your salary is "capped" by law, the amount of your Option B is based on the capped amount, the amount you are actually being paid. It is not based on the amount your pay would be without the cap.
The same things that are included in your annual pay for Basic insurance are also included for Option B. The same things that are not included for Basic insurance are not included for Option B. (See "Annual Rates of Pay.")
With Option B there is no Extra Benefit if you are under age 45.
Option C-Family
Option C provides coverage for your spouse and eligible dependent children. When you elect Option C, all of your eligible family members are automatically covered. You may elect either 1, 2, 3, 4 or 5 multiples of coverage. Each multiple is equal to $5,000 for your spouse and $2,500 for each eligible dependent child.
Example
If you elect three multiples of Option C, and your spouse dies, you would receive $15,000 (3 times $5,000). If one of your eligible dependent children dies, you would receive $7,500 (3 times $2,500).
The number of multiples you elect applies to all of your eligible family members. You cannot elect a number of multiples for your spouse that is different from the number of multiples for your eligible dependent children. The number of multiples is also not connected to the number of family members. You can elect 5 multiples of Option C even if you have only one child, for example.
There is no Extra Benefit for Option C if you (or a covered family member) are under age 45.
CONCURRENT EMPLOYMENT
Eligibility
If you are legally serving in more than one position at the same time - whether in the same or in different agencies - you are eligible for life insurance coverage as long as at least one of your positions is a covered position.
You cannot have more than one FEGLI election for each type of coverage, so you cannot have FEGLI in more than one position. In other words, you cannot carry "two FEGLI policies" even though you are serving in more than one position.
Amount of Insurance
The amount of Basic and Option B insurance is based on the sum of the annual pay for all of your positions, including the annual pay for a position excluded from life insurance coverage.
The agency which pays the higher salary does the withholding and pays the Government contribution. Exception: If you are in nonpay status from one position, the agency that is still paying salary does the withholdings and pays the Government contribution.
Exceptions:
- This does not apply to part-time flexible schedule employees in the Postal Service.
- If you are in nonpay status from your covered position and you accept a temporary appointment in which you would normally be excluded from coverage, the amount of your Basic and Option B coverage is based on whichever position's salary is higher.
- If one of your positions is an excluded position, and you go into nonpay status in that position, at the end of 12 months in nonpay status, the amount of coverage is no longer based on the combined salary, but only on the salary from the covered position.
- If one of your positions is a temporary, intermittent, position with the decennial (every 10 years) census, it has no effect on the amount of your Basic or Option B insurance, the withholdings or Government contribution for your insurance, or determining when 12 months in nonpay status ends.
The two salaries are added together before rounding up to the next even thousand and before adding the additional $2,000 for Basic insurance.
Example
Hannah works full-time for the Department of Energy, with an annual salary of $57,319. She also works part-time for the IRS; her part-time annual salary is $21,432. Her BIA is $81,000 ($57,319 + $21,432 = $78,751, rounded up to $79,000 + $2,000). If Hannah has Option B coverage, each multiple is worth $79,000 up to a maximum of five multiples.
Concurrent employment does not affect the amount of Option A or Option C coverage.
Multiple Rate Employee with Part-Time Flexible Schedule Appointment
When you are a multiple rate employee who holds more than one appointment, with at least one of them being a part-time flexible schedule appointment in the Postal field service, the amount of Basic and Option B insurance is based on the higher (highest) of the pay rates.
CHANGES IN AMOUNT OF INSURANCE
Automatic Changes
If you are insured as an employee, the amount of Basic insurance and Option B coverage automatically changes whenever your annual pay is increased or decreased by an amount that will raise or lower pay to a different $1,000 bracket. Exception: If you have elected a living benefit, the amount of your post-election BIA cannot change.
The effective date of your increased/decreased insurance amount is the effective date of your increased/decreased annual pay.
The amount of your Option A and Option C coverage does not change due to changes in annual pay.
If you are insured as an annuitant or compensationer, your BIA will not change.
- However, the amount of Basic insurance in force as an annuitant or compensationer may start to reduce when you reach age 65, depending on the election you made at the time you retired or became insured as a compensationer.
- Your Option B and Option C coverage as an annuitant or compensationer may also start to reduce at age 65 depending on the election you make at retirement regarding post-65 reduction.
- Your Option A coverage as an annuitant or compensationer will automatically start to reduce at age 65.
- (See "Post-65 Reduction in the Amount of Coverage - Basic Insurance" and "Post-65 Reduction in the Amount of Coverage - Optional Insurance.")
Correction of Errors in Annual Pay
When a pay change is retroactive, any resulting change in the amount of Basic and Option B insurance becomes effective retroactively on the effective date of the pay adjustment. The premiums must be adjusted accordingly.
ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) BENEFITS
When Are Benefits Payable?
Accidental death and dismemberment (AD&D) benefits are payable when you sustain bodily injury solely through violent, external, and accidental means, and as a direct result of the bodily injury, independently of all other causes, and within one year afterwards, you lose your life, limb (hand or foot), or eyesight.
- Loss of hand means loss by severance at or above the wrist joint, or equivalent loss, as determined by OFEGLI.
- Loss of foot means loss by severance at or above the ankle joint, or equivalent loss, as determined by OFEGLI.
- Loss of eyesight means total and permanent absence of any usable vision in one or both eyes.
Accidental death benefits, if payable, are payable in addition to "regular" FEGLI benefits.
Exclusions
AD&D benefits will not be paid if your death or loss in any way results from, is caused by, or is contributed to by:
- physical or mental illness;
- the diagnosis of or treatment of a physical or mental illness;
- ptomaine or bacterial infection. However, accidental death and dismemberment benefits will be paid if the loss is caused by an accidentally sustained external wound;
- a war (declared or undeclared), any act of war, or any armed aggression against the United States, in which nuclear weapons are actually being used;
- a war (declared or undeclared), any act of war, or any armed aggression or insurrection in which you are in actual combat at the time bodily injury is sustained;
- suicide or attempted suicide;
- injuring yourself on purpose;
- illegal or illegally obtained drugs that you administer to yourself; or
- driving a vehicle while intoxicated, as defined by the laws of the jurisdiction in which you were operating the vehicle.
&Regular& Basic insurance and any Optional insurance are payable when you die, regardless of the cause, even if accidental death benefits are not payable.
Automatic Coverage
AD&D coverage is an automatic part of Basic and Option A insurance for employees.
There is no AD&D coverage:
- With Options B and C;
- For annuitants or persons insured as compensationers; and
- During the 31-day extension following termination of coverage.
Accidental death benefits are paid to your beneficiary(ies); accidental dismemberment benefits are paid to you, the insured.
Amount of Accidental Death Benefits under Basic Insurance
Under Basic insurance, accidental death benefits are equal to your BIA, but without the age multiplication factor. These benefits are payable in addition to your Basic insurance and any Optional insurance payable.
Example
At age 37, Ian dies as the result of injuries received in a car accident. His BIA at the time of his death is $48,000. Ian also has 3 multiples of Option B, each worth $46,000. The benefits payable to Ian's beneficiary(ies) are as follows:
| |
Regular Death Benefit |
Accidental Death Benefit |
| Basic Insurance |
$86,400 ($48,000 x age multiplication factor of 1.8) |
$48,000 |
| Option B |
$138,000 |
N/A |
Since Ian is below age 45 on the date of death, he is eligible for the Extra Benefit. The total amount payable is $272,400 ($86,400 + $138,000 + $48,000).
Amount of Accidental Dismemberment Benefits under Basic Insurance
Under Basic insurance, accidental dismemberment benefits for the loss of one hand, one foot, or eyesight in one eye are equal to one-half of your BIA.
For the loss of two or more of these in the same accident, benefits are equal to your full BIA.
Total AD&D benefits for a single accident, no matter how many losses occur, cannot be more than your full BIA.
Example
Ileana, age 46, has Basic coverage only. She loses an arm in a climbing accident. Her BIA is $42,000. The amount of accidental dismemberment benefits payable to her is $21,000 for the loss of her arm. Six months later, she loses sight in both eyes due to the same accident. She is eligible for another accidental dismemberment payment of $21,000. The total accidental dismemberment benefit payable to Ileana from this accident is $42,000, equaling her BIA, even though she suffered three losses (one arm and sight in both eyes).
Two weeks later, Ileana dies as the result of other injuries sustained in that accident. While a regular death benefit of $42,000 is payable, no accidental death benefit will be payable, since any additional payment for this accident would be more than Ileana's BIA.
Amount of Accidental Death & Dismemberment Benefits under Option A
Under Option A, accidental death benefits are equal to the amount of Option A coverage ($10,000). Accidental dismemberment benefits for the loss of one hand, one foot, or eyesight in one eye are equal to one-half of your Option A coverage ($5,000). For the loss of two or more of these, benefits are equal to your full Option A coverage.
Total AD&D benefits under Option A for a single accident, no matter how many losses occur, cannot be more than your Option A benefits of $10,000.
These benefits are payable in addition to your Basic insurance and any Option B insurance payable. AD&D benefits for Option A are payable only if you were enrolled in Option A at the time of your accident.
Benefits for Different Accidents
AD&D benefits are payable for each separate accident, regardless of whether benefits were paid to you for a previous accident.
Example
Jeremy's BIA is $60,000 and he loses an eye (eyesight in one eye) in an accident. He will be paid $30,000 in accidental dismemberment benefits. If he later dies in another accident, his beneficiaries will receive the full $60,000 in accidental death benefits for the second accident.
Benefits following a Living Benefit Election
If you elect a full living benefit, your post-election BIA is $0. The amount of your AD&D coverage therefore is also $0.
If you elect a partial living benefit, you still have some Basic insurance left. The amount of your AD&D coverage is reduced to correspond to your post-election BIA.
A living benefit election has no effect on AD&D benefits under Option A.
HISTORICAL INFORMATION
Basic Insurance
The FEGLI Program started in 1954. At that time, what is now called Basic insurance was the only coverage offered. In 1968, when Optional insurance began being offered, what is now called Basic insurance became known as "regular" insurance. The term "Basic" insurance came into use in 1981 with the introduction of Options B and C.
Until February 1968 there was no minimum amount of "regular" insurance and no additional $2,000 of insurance.
The Extra Benefit (age multiplication factor) became effective in October 1981.
Prior to October 1998, Basic insurance was subject to a maximum.
Option A
Option A (Standard Optional Insurance) came into effect in February 1968. At that time it was simply called "optional" insurance. When Options B and C were introduced in 1981, Option A became known by its current name.
When Basic insurance was subject to a maximum, Option A could be increased beyond the normal $10,000 amount to compensate for the limitation on Basic. When the maximum on Basic was removed in 1998, there was no longer a need for Option A to be more than $10,000. Since then, the only persons with more than $10,000 in Option A coverage were those who retired or became insured as compensationers with a higher amount of Option A before the removal of the maximum on Basic.
Option B
Option B (Additional Optional Insurance) became effective in April 1981.
Until October 1998, like Basic insurance, Option B was subject to a maximum.
Option C
Option C (Family Optional Insurance) became effective in April 1981. Initially, the amount of coverage was $5,000 for the death of a spouse and $2,500 for the death of an eligible child.
In April 1999 multiples of Option C went into effect, with each multiple (up to five) worth $5,000 for the death of a spouse (for a maximum of $25,000) and $2,500 for the death of an eligible child (for a maximum of $12,500 for each child).
Accidental Death and Dismemberment (AD&D)
In November 2000, we added the exclusion for "driving a vehicle while intoxicated, as defined by the laws of the jurisdiction in which you were operating the vehicle".
Previously, AD&D benefits were payable only if the death or dismemberment happened within 90 days of the accidental injury. In February 2003, the 90-day period was extended to one year.
In August 2004, we removed the exclusion for hernia.
U.S. Office of Personnel Management 1900 E Street NW, Washington, DC 20415 | (202) 606-1800 | TTY (202) 606-2532