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American Benefits Exchange Federal ABX

Federal Group Life Insurance

The Federal Employees’ Group Life Insurance (FEGLI) Program was established on August 29, 1954. It is the largest group life insurance program in the world, covering over 4 million Federal employees and retirees, as well as many of their family members.

Most employees are eligible for FEGLI coverage. FEGLI provides group term life insurance. As such, it does not build up any cash value or paid-up value. FEGLI coverage consists of Basic life insurance coverage and three options (A, B, & C). You must have Basic insurance in order to elect any of the optional coverage

The cost of Basic federal employee insurance is shared between the employee and the Government. Age does not affect the cost of Basic insurance. Options A, B, & C do not have shared costs and are fully paid for by the employee.

This entire program is administered by the Metropolitan Life Insurance Company (MetLife) under contract with the Office of Personnel Management (OPM). The Office of Federal Employees’ Group Life Insurance (OFEGLI), which is a private entity, has a contract with the Federal Government, processes and pays claims under the FEGLI Program.

American Benefits Exchange, LLC is not connected with or endorsed by the local, state, or federal government.

FEGLI Basic Life
FEGLI Optional Coverage
FEGLI After Retirement
FEGLI Basic Life

FEGLI Basic Life Insurance

FEGLI Basic Coverage Amount

The FEGLI Basic coverage amount is determined by the federal employee’s annual basic pay rounded to the next thousand plus $2,000. This excludes Cost of Living Adjustment (COLA). The minimum amount of basic life insurance is $10,000, for those earning $8,000 or less. The cost of Basic Life Insurance is 15 cents bi-weekly or 32.5 cents monthly per thousand; however it is free for postal employees.

FEGLI Life Insurance – Extra Benefit

If you are 44 years old or younger, you are eligible for the Extra Benefit option. The amount of this benefit is calculated by multiplying the amount of your Basic Life Insurance by an Age Multiplication Factor (see table below). This amount is then added to your Basic Life Insurance to determine your coverage amount at your current age.

Beginning at age 36, the multiplication factor for the amount of basic extra benefit insurance declines by 10% each year. The extra benefit ends at age 45.

Age Factor
35 and Under 1.0
36 0.9
37 0.8
38 0.7
39 0.6
40 0.5
41 0.4
42 0.3
43 0.2
44 0.1
FEGLI Optional Coverage

FEGLI Options

You must have Basic Life Insurance coverage to be eligible for FEGLI’s three Optional Insurance offerings: Option A (Standard Optional Insurance), Option B (Additional Optional Insurance) and Option C (Family Optional Insurance). You must actively elect your Optional coverage and you must pay the full cost for all Optional coverage you select.

FEGLI Option A (Standard Optional Insurance):

FEGLI Option A (Standard Optional Insurance) gives you an additional $10,000 worth of coverage. The costs are outlined in the table below:

Age Group Bi-Weekly Monthly
Under 35 $0.20 $.43
35-39 $0.30 $0.65
40-44 $0.40 $0.87
45-49 $0.70 $1.52
50-54 $1.10 $2.38
55-59 $2.00 $4.33
60 and over $6.00 $13.00

FEGLI Option B (Additional Optional Insurance)

FEGLI Option B (Additional Optional Insurance) allows the federal employee to elect up to 5 times their base salary rounded to the next thousand in additional coverage. The employee must pay the entire cost. Costs are per thousand dollars of coverage and are based upon the employee’s age. Costs increase every 5 years beginning at age 35. See chart below.
Withholding costs per $1,000 are outlined in the table below:

Age Group Bi-Weekly Monthly
Under 35 $0.02 $.043
35-39 $0.03 $0.065
40-44 $0.04 $0.087
45-49 $0.07 $0.152
50-54 $0.11 $0.238
55-59 $0.20 $0.433
60-64 $0.44 $0.953
65-69 $0.54 $1.170
70-74 $0.96 $2.080
75-79 $1.80 $3.900
80+ $2.64 $5.720

Costs for FEGLI Option B can get very expensive over time. It is always important to look at all of the options to see what is available in order to potentially reduce costs.

FEGLI Option B Comparison

Here is an example of a FEGLI Option B comparison and the potential cost savings. Let’s use a 45 year old female federal employee in great health, Jane Smith. Jane has a base rate of pay of $50,001 and has elected 5 times Option B. Here total coverage under Option B is $255,000. Costs for this coverage both currently and over time are shown in the chart below:

Age Group Bi-Weekly Factor Bi-Weekly Cost Monthly Factor Monthly Cost
45-49 .08 20.40 .173 44.12
50-54 .13 33.15 .282 71.91
55-59 .23 58.65 .498 126.99
60-64 .52 132.60 1.127 287.39
65-69 .62 158.10 1.343 342.47
70-74 1.14 290.70 2.470 629.85
80+ 2.40 612.00 5.200 1,326.00

Over the next 20 years Jane’s total costs will be $31,824.60 and over the next 30 years $112,042.80.

When comparing these costs to those of a highly rated insurance company over the same period of time, Jane will be able to save about $25,000 over the next 20 years and $96,000 over the next 30 years.

Click here for a FREE analysis and to see which options you may qualify for and what your comparison looks like.

FEGLI Option C (Family Optional Insurance):

FEGLI Option C (Family Optional Insurance) allows the federal employee to elect coverage for their eligible family members: spouse and dependent children (including adopted children, stepchildren or recognized natural children who live with you or are receiving substantial support from you). To receive coverage, a child must be under 22 years of age and unmarried, or if over 22, must be incapable of self-support because of an existing (prior to age 22) mental or physical disability.

Coverage can be elected in units: $5,000 for your spouse and $2,500 for each child. The federal employee may elect up to five (5) units of coverage.

Costs are based upon the the amount of units elected and the federal employee’s age. Costs increase every 5 years beginning at age 35. See chart below:

Age Group Bi-Weekly Monthly
Under 35 $0.22 $.48
35-39 $0.29 $0.63
40-44 $0.42 $0.91
45-49 $0.63 $1.37
50-54 $0.94 $2.04
55-59 $1.52 $3.29
60-64 $2.70 $5.85
65-69 $3.14 $6.80
70-74 $3.60 $7.80
75-79 $4.80 $10.40
80+ $6.60 $14.30
FEGLI After Retirement

Federal Government Retirement Benefits

At American Benefits Exchange, we help Federal Employees understand the benefits they have, as well as other options in the private sector. Our representatives will take a look at your unique goals and show you what options are available to help you reach those goals.

What You Need to Know about Federal Government Retirement

There are number options available to you when you retire as a government employee. These options are effective the first of the month following the month in which you reach the age of 65 or retire (if later). Under the 75% Reduction Plan, your premiums remain the same; higher premiums are charged under the 50% Reduction and No Reduction Plans.

75% Reduction Plan: Once you retire or reach the age of 65, the amount of your FEGLI decreases by 2% a month, until you have reached 25% of your Basic Life policy value. You will continue to pay the same premium as active employees until you reach the age of 65. Then your coverage will be free.

50% Reduction – This consists of a reduction of 1% a month beginning at age 65, which continues until coverage reaches 50% of the basic policy value. There is a higher premium charged for the lesser reduction (i.e., $1.035 per month per $1,000 of coverage until age 65 and $.71 a month per $1,000 of coverage thereafter).

No Reduction – This choice results in a larger premium being charged – $2.455 per month per $1,000 of coverage until age 65 and $2.13 per month per $1,000 of coverage thereafter.

Option A (Standard Optional Insurance):

Option A (Standard Optional Insurance) coverage is free after you turn 65 or retire (if later). Coverage will be reduced by 2% per month until it reaches 25% of the pre-retirement amount, beginning the month following your 65th birthday or retirement, whichever is later. You cannot select any reduction plans.

Option B (Additional Optional Insurance):

Option B (Additional Optional Insurance) is free after you reach the age 65. Then, your coverage will decrease at the rate of 2 percent each month for 50 months, at which point your coverage will cease. However, you may elect to continue your coverage at the time of your retirement. You will then be required to pay the monthly premiums. You may cancel this election at a later date.

Option C (Family Optional Insurance):

Option C (Family Optional Insurance) is free after you reach the age 65. Then, your coverage will decrease at the rate of 2 percent each month for 50 months, at which point your coverage will cease. However, you may elect to continue your coverage at the time of your retirement. You will then be required to pay the monthly premiums. You may cancel this election at a later date.

ABX is not connected with the federal government.

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