Federal Employee Group Life Insurance for Family Members
The Federal Employees’ Group Life Insurance (FEGLI) Program is a comprehensive life insurance plan available to federal employees, retirees, and many of their family members. Established in 1954, it’s the largest group insurance program globally. Coverage under FEGLI has options to suit different needs and budgets. Basic life is automatically provided to most new federal employees, with additional options available for supplemental insurance. The program offers financial security by paying benefits in the event of the insured person’s death or dismemberment, helping to support loved ones during difficult times.
FEGLI Option C is a valuable benefit designed to provide financial protection to federal employees’ families. This option allows employees to extend insurance benefits to their spouse and eligible dependent children.
What is FEGLI Insurance Option C Coverage?
FEGLI Option C is a family insurance option that protects a federal employee’s spouse and eligible dependent children. The amount for each family member is determined by the number of multiples the employee elects, with each multiple equaling $5,000 for the spouse and $2,500 for each child.
Unlike FEGLI Basic, Options A, and Option B, which are insurance for the employee, Option C is solely focused on providing financial protection for the employee’s family. Additionally, while the cost of FEGLI Basic, Options A, and B is based on the employee’s salary, the cost of Option C is based on the employee’s age and the number of multiples elected.
Knowledge is Confidence!
What Are the Costs for Option C?
Although Option C covers the life of the employee’s family members, the costs are based on the employee’s age and the number of multiple selected. Here are the details on the premiums per multiple.
As the employees age, the cost for each multiple goes up by their age brackets. Moreover, the cost does not change based on the number of family members. For example, if you are 55, married, and have 3 children, your cost would be the same as someone who is 59, married, and has 1 child.
Understanding Eligibility and Criteria
So who will qualify for Option C coverage? Only your spouse and unmarried children under age 22 would qualify. If your child is incapable of self-support due to a disability prior to age 22, they can maintain the insurance. Children can be:
- Natural Children
- Adopted Children
- Stepchildren
- Foster Children
Planning Considerations for Option C FEGLI
Do you have any eligible family?
The most important thing with FEGLI is understanding the eligibility requirements above. We often meet single or divorced employees with children over 22 who still carry Option C coverage. If you review the requirements above, you should realize that you are paying for family insurance, but no one is eligible. The good thing is that you can cancel Option C, and it can be retroactive to the end of the pay period in which you ceased to have any eligible family members. You can work with your agency to get the refund of extra premiums paid using SF2817.
Keeping it in Retirement
You are eligible to maintain after you retire if you had it for the last 5 years before retirement. Remember that the cost could be as high as $16.90 per multiple. Considering that you are covering your spouse, that’s $219.70 per month for $5,000 of insurance. The cost may not be worth it unless your spouse has health issues.
FEGLI Calculator
OPM’s website has two great tools for verifying insurance coverage and costs. The first tool is the FEGLI Code Translator. You can enter the FEGLI code on your LES (Leave & Earnings Statement) to determine your coverage.
Now that you know your insurance amount, you can enter your information on their FEGLI Calculator to get the exact cost. You can also modify your coverage to see how it will affect your premium.
Reach Out to Us!
If you have additional federal benefit questions, contact our team of CERTIFIED FINANCIAL PLANNER™ (CFP®) and Chartered Federal Employee Benefits Consultants (ChFEBC℠). At PlanWell, we are federal employee financial advisors with a focus on retirement planning. Learn more about our process designed for the career fed.
Preparing for federal retirement? Check out our scheduled federal retirement workshops. Sign up for our no-cost federal retirement webinars here! Make sure to plan ahead and reserve your seat for our FERS webinar, held every three weeks. Want to have PlanWell host a federal retirement seminar for your agency? Reach out, and we’ll collaborate with HR to arrange an on-site FERS seminar.
Want to fast-track your federal retirement plan? Skip the FERS webinar and start a one-on-one conversation with a ChFEBC today. You can schedule a one-on-one meeting here.
