If you are reemployed under conditions that terminate your annuity, the life insurance you carried as an annuitant is also terminated. There is no right to convert. You can get life insurance as an employee, as long as you are not in an excluded position. Note: An annuity that is suspended is not considered to be terminated.
If you are reemployed and your annuity continues and the position is FEGLI eligible, the Basic insurance you carried as an annuitant is suspended. If enrolled in Option A and Option C, those coverages you carried as an annuitant are also suspended. You automatically get Basic just like any other employee. You automatically get Option A and Option C insurance as an employee, if enrolled.
Option B is handled differently from Basic, Option A, and Option C.
When you have Option B as an annuitant and are reemployed in a position that does not exclude coverage, you must be given the opportunity within 60 days of reemployment to choose whether to keep Option B as an annuitant or have it as an employee.
Please refer to the FEGLI Handbook for all the details on the actions you and your agency need to take regarding your FEGLI coverage as a reemployed annuitant. It is important that the OPM Retirement Office is notified of your reemployment.