Employees who separate from service while on military duty are considered to be in a nonpay status for FEGLI purposes. These individuals 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 right to convert.

If a Federal employee with FEGLI is called-up to active military duty and is killed, death benefits are payable to the employee's beneficiaries. Accidental death and dismemberment benefits are also payable under Basic insurance (and Option A, if the employee had that coverage) unless the employee was in actual combat at the time. 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 types of life insurance he or she had before going into nonpay status (as long as the position is not excluded from coverage).