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Introduction to Federal Employees’ Group Life Insurance (FEGLI) Program

Feb 27th 2020 at 1:44 AM

FEGLI Program is a life insurance program created for the federal and postal employees and for annuitants (an individual who receives annuity). It is authorized by the law (refer to Chapter 87 of Title 5 of the United States Code). The Office of Personnel Management (OPM) takes care of the Program, sets the premiums and sees if everything is going in the right direction. The FEGLI regulations are in Title 5 of the Code of Federal Regulations (CFR). FEGLI can be termed as a group term life insurance. It does not add up to the cash value and you won’t be able to take a loan out against your FEGLI insurance plan. OPM has joined hands with the Metropolitan Life Insurance Company to offer this particular life insurance scheme. This company has an administrative office known as the Office of Federal Employees’ Group Life Insurance (OFEGLI). It serves as a contractor that examines claims under the program. The process of FEGLI basic life insurance retirement plan is not that complicated and can be accomplished with the help of a renowned federal retirement planning consultant.

Law and Regulations

Public Law 83-598 permits the creation of the FEGLI program. FEGLI Program regulations are found in part 870 of Title 5 of the CFR. You can find more information one the law and regulations on the FEGLI homepage.

Basic Insurance

As an eligible worker of your organization, you will be automatically entitled for the basic insurance unless you waive the coverage. Basic insurance covers life for whichever is higher —Your annual rate of basic pay (rounded to even $1,000 plus $2,000) or $10,000.

This is referred to as the Basic Insurance Amount (BIA). The Government pays 33 % of the premium cost for the basic plan and you pay the other 67%. The USPS pays the entire amount required to secure a basic insurance plan for its employees.

Optional Insurance

There are three major categories of optional insurance — Option A (Standard), Option B (Additional), and Option C (Family). The former insures your life for $10,000. The second option provides insurance for 1, 2, 3, 4, or 5 multiples of your annual rate of basic pay (approximated to the next even $1,000). The last option insures the lives of your spouse and other eligible dependent children. It comes in 1, 2, 3, 4, or 5 times the coverage. Each is equivalent to $5,000 for a spouse and $2,500 for each eligible child.

Consider this article and hire federal employee retirement constant from a reliable company.

Author: The author is a blogger and the article is about FEGLI insurance.

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