Q. Who will get my life insurance benefits when I die?
A. When you die, the Office of Federal Employees' Group Life Insurance (OFEGLI) will pay life insurance benefits in a particular order, set by law:
- If you assigned ownership of your life insurance, OFEGLI will pay benefits in the following order of precedence:
First, to the beneficiary(ies) designated by your assignee(s), if any;
Second, if there is no such beneficiary, to your assignee(s).
- If you did not assign ownership and there is a valid court order on file, OFEGLI will pay benefits in accordance with that court order.
- If you did not assign ownership and there is no valid court order on file, OFEGLI will pay benefits in the following order of precedence:
- First, to the beneficiary(ies) you designated;
- Second, if there is no such beneficiary, to your widow or widower;
- Third, if none of the above, to your child or children, with the share of any deceased child distributed among descendants of that child (a court will usually have to appoint a guardian to receive payment for a minor child);
- Fourth, if none of the above, to your parents in equal shares or the entire amount to your surviving parent;
- Fifth, if none of the above, to the executor or administrator of your estate;
- Sixth, if none of the above, to your other next of kin as determined under the laws of the state where you lived.
Q. What is OFEGLI?
A. The Office of Federal Employees' Group Life Insurance (OFEGLI) is an administrative unit of Metropolitan Life Insurance Company (MetLife) that pays claims for the Federal Employees' Group Life Insurance (FEGLI) Program.
OFFEGLI is located in Utica, NY. The toll free phone number 1-800-633-4542 is available from 8:30 am to 4:00pm EST. Overseas beneficiaries should call 212-578-2975. The mailing address is P.O. Box 6512, Utica, NY 13504-6512. The address to use for overnight mail deliveries is 5950 Airport Road, Oriskany, NY 13424-3926.
How are claims paid under the FEGLI Program?
A. The Office of Federal Employees' Group Life Insurance (OFEGLI) is an administrative unit of Metropolitan Life Insurance Company (MetLife) that pays claims for the Federal Employees' Group Life Insurance (FEGLI) Program.
If OFEGLI is paying the beneficiary less than $5,000, the beneficiary will receive a check.
If OFEGLI is paying the beneficiary $5,000 or more, the beneficiary will have a choice of two ways to receive the payment.
- A check
- A MetLife Total Control Account or (TCA), an interest bearing account set up in the beneficiary's name, with MetLife
If the beneficiary is receiving $5,000 or more and does not make a decision on how to receive payment, a MetLife Total Control Account will be set up in the beneficiary' s name.
Q. What is a MetLife Total Control Account (TCA)?
A. The MetLife TCA is a settlement option offered by Metropolitan Life Insurance Company (MetLife) for the payment of claims. A MetLife TCA is not a checking, savings, or money market bank account. Since the MetLife TCA is not a bank account, it is not insured by the FDIC or any government agency. Instead, MetLife guarantees the full amount in the MetLife TCA, including all interest earned. MetLife's guarantee is further backed by the beneficiary's respective state guaranty association. Maximum guarantee limits vary from state to state and may change over time. If the beneficiary chooses a MetLife TCA, the relationship is between
the beneficiary and MetLife, not with the Federal Government or any of its agencies. You or your beneficiary can find additional information about state guaranty associations on the National Association of Insurance Commissioners (NAIC) website www.naic.org.
The MetLife TCA offers a minimum guaranteed annual effective interest rate, meaning that
MetLife commits to pay the beneficiary at least that specified rate of interest on the money in the account. The beneficiary begins earning interest the day the MetLife TCA is created. Interest is earned daily, but is not credited until the last day of the month. The interest rate offered on the MetLife TCA may be better or worse than
the prevailing market rates. The MetLife TCA is a product offered by
MetLife on which the company may make a profit. The beneficiary pays no
monthly maintenance fees on a MetLife TCA.
The beneficiary has complete control of, and access to, the entire amount of the
insurance proceeds. The beneficiary can withdraw the full amount from the MetLife TCA at any time. The information packet the beneficiary receives will include a draft book (similar to a checkbook). At any time and at no cost, the beneficiary can write drafts (similar to checks) from a minimum of $250 up to the full balance of the account. In addition, the beneficiary will receive periodic activity statements, and can designate a beneficiary for the account. If the beneficiary chooses the MetLife TCA settlement option, he or she will receive more detailed information when the account is opened.
Q. Will benefits still be payable if I commit suicide?
A. Yes. Benefits are payable based on the death of an enrolled individual no matter how the death happened. However, if someone else causes your death, he or she may be excluded from receiving the death benefits.
The Office of Federal Employees' Group Life Insurance (OFEGLI) will not pay Accidental Death and Dismemberment (AD&D) benefits in a suicide or attempted suicide case since the death or dismemberment is not accidental.
Q. Can the Office of Federal Employees' Group Life Insurance (OFEGLI) pay the funeral home from the FEGLI benefits? If so, how is this done?
A. Yes. OFEGLI can pay FEGLI benefits to a funeral home if that's what the person entitled to the money wants to happen. Funeral homes have the form to do this.
Q. Will my beneficiary have to pay income tax on the FEGLI benefits?
A. Life insurance proceeds are not considered taxable income for the recipients for personal income tax purposes. Interest paid on FEGLI proceeds is reportable as income for Federal Income tax purposes. You may wish to consult your tax advisor for further advice.
Q. When is interest paid?
A. The Office of Federal Employees' Group Life Insurance (OFEGLI) pays interest on claims from the date of the insured's death to the date of the payment. OFEGLI pays a maximum of two years worth of interest, even if the time from date of death to date of payment is over two years.
Q. I willll travel over a war zone soon, but I am not in the military and will not be in combat. Will life insurance benefits still be payable, if I die there?
A. Yes. Basic and any Optional insurance is payable no matter where your death occurs.
The only amount in question is the Accidental Death and Dismemberment (AD&D) coverage payable under Basic and Option A. AD&D coverage is payable if you receive bodily injuries solely through violent, external, and accidental means (with some exceptions) and if, as a direct result of the bodily injuries, independently of all other causes, and within one year afterwards, you lose your life, limb, or eyesight. One of the exceptions is if your death or loss is caused directly or indirectly by war (declared or undeclared), any act of war, armed aggression, or insurrection, in which you are, at the time bodily injuries are sustained, in actual combat.
The Office of Federal Employees' Group Life Insurance (OFEGLI) decides whether to pay AD&D only after the death or loss has occurred and after thoroughly studying the facts surrounding the situation. OFEGLI cannot give definitive answers beforehand.