General Information
Who Gets the Money after I Die?
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 by filing an Assignment, Federal Employees' Group Life Insurance (RI 76-10), OFEGLI will pay benefits:
- 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 (see page 22) 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 (see page 22) on file, OFEGLI will pay benefits:
- 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.
If you want payment to be made differently from the order listed above, and you have not assigned your life insurance and a valid court order is not on file, you must designate a beneficiary. A court-appointed guardian, or someone with your power of attorney, or other fiduciary may not designate a beneficiary for your insurance. However, if you are satisfied with the order of payment listed above, you do not need to do anything.
If there is a valid court order on file, you may not change or submit a designation of beneficiary unless the person(s) named in the decree, order, or agreement agrees in writing, or unless the decree, order, or agreement is modified.
A valid court order refers to a certified court decree, court order, or court-approved property settlement agreement incident to your court decree of divorce, annulment, or legal separation that your human resources office receives on or after July 22, 1998,and before your death (if you are an employee, or a compensationer during the first 12 months of nonpay status) or the Office of Personnel Management receives on or after July 22, 1998, and before your death (if you are an annuitant, or a compensationer after the first 12 months of nonpay status). Such an order must expressly provide for someone to receive your FEGLI benefits. If a valid court order is on file, it takes precedence over previously filed designations, and you cannot file subsequent designations.
You cannot designate beneficiaries if you have assigned your insurance. Only the assignee(s) may designate beneficiaries.
If you wish to make a designation for your Federal Employees' Group Life Insurance (FEGLI), you should complete a Designation of Beneficiary (SF 2823)and submit it to your human resources office. Your human resources office must receive the form before you die.
A designation made in any other document is valid only if the document specifies your FEGLI benefits, is signed by you, and otherwise meets the requirements of a valid FEGLI designation of beneficiary.
If you decide to file a designation, be sure it remains accurate and reflects your intentions. You should review your designation periodically, and file a new designation whenever a beneficiary's address changes. Failure to do so may mean that the Office of Federal Employees' Group Life Insurance (OFEGLI) may not be able to locate your beneficiaries and therefore cannot pay them the death benefits.
How Should Someone File a Claim?
Your beneficiary or other survivor should contact your human resources office for a Claim for Death Benefits (FE-6), or download a copy from the FEGLI website at www.opm.gov/insure/life. The completed claim form should be submitted along with a certified death certificate to your human resources office or, if instructed, directly to OFEGLI.
If you have Option C and an insured family member dies, contact your human resources office for a Statement of Claim-Option C, Family Life Insurance (FE-6 DEP) which contains further instructions, or download a copy from the FEGLI website.
How Are Benefits Paid?
As the insured person, you receive any living benefits or accidental dismemberment benefits that may be payable. You cannot designate a beneficiary(ies) for these benefits.
If an insured family member dies, you receive any Option C benefits that may be payable. You cannot designate a beneficiary(ies) for Option C.
If you die while insured, your beneficiary(ies) or other survivors will receive your Basic, Option A and/or Option B benefits (if enrolled). 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 your beneficiary less than $5,000, your beneficiary will receive a check.
If OFEGLI is paying your beneficiary $5,000 or more, your 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 your beneficiary's name, with the Metropolitan Life Insurance Company (MetLife))
If your 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 your beneficiary's name.
The MetLife TCA is a settlement option offered by 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.
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.
Someone who wrongfully causes your death cannot receive payment of death benefits. In addition, please refer to the list of exclusions on page 10 for Accidental Death and Dismemberment benefits.