Life Insurance (FEGLI) Options | Federal RIF Resource Hub
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Life Insurance (FEGLI) Options

Maintain financial protection for your family by understanding your FEGLI options after a RIF.

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Understanding Your FEGLI Coverage

Federal Employees' Group Life Insurance (FEGLI) provides crucial financial protection. When facing a Reduction in Force (RIF), knowing your options for continuing coverage is essential.

Good News: Free Extension
Your FEGLI coverage automatically continues for 31 days after separation at no cost. This gives you time to make decisions.

Your Current FEGLI Coverage Types

As a federal employee, your FEGLI coverage likely includes some combination of:

  • Basic Insurance: Generally your annual basic salary rounded up to the next $1,000, plus $2,000.
  • Option A - Standard: An additional $10,000 of coverage.
  • Option B - Additional: 1 to 5 times your annual basic salary (you elected the multiple).
  • Option C - Family: Coverage for your spouse and eligible dependent children (you elected the number of multiples).

Verify your specific coverage levels in your personnel records or through your agency's HR/Benefits portal.

FEGLI Continuation Options After RIF

Option 1: 31-Day Free Extension

This happens automatically:

  • All your current coverage remains in effect for 31 days after separation.
  • No premiums are required during this time.
  • Provides a window to arrange for conversion or other coverage.

Option 2: Convert to an Individual Policy

You have the right to convert your FEGLI coverage (Basic, Option A, B, and/or C) to an individual policy without a medical exam.

Key Points about Conversion:
  • You must apply within the strict 62-day deadline from your separation date (31-day free extension + 31-day application window).
  • Conversion is handled by the Office of Federal Employees' Group Life Insurance (OFEGLI), administered by MetLife.
  • The policy type is typically whole life insurance, not term insurance.
  • Premiums are based on your age at conversion and are significantly higher than FEGLI employee rates.
Cost Warning
Converted policy premiums are much higher than employee rates. It's crucial to request a premium quote before deciding.

Option 3: Continue Coverage Through Retirement (If Eligible)

If you qualify for an immediate annuity (including DSR), you can continue FEGLI coverage into retirement.

Key Points for Retirement Continuation:
  • You must meet the "5-year rule" (enrolled in FEGLI for 5 years before retirement or since first opportunity).
  • You can choose which coverages (Basic, A, B, C) to continue.
  • You can elect reductions in coverage (75% reduction, 50% reduction, or No reduction for Basic) to lower premiums in retirement.
  • Premiums are deducted from your annuity.
  • Coverage amounts may automatically reduce after age 65 unless you elected "No Reduction" for Basic.
Check Retirement Eligibility

FEGLI Conversion Premium Estimator (Very Rough)

This tool provides a highly simplified, non-official estimate of potential conversion costs. Actual premiums are determined solely by OFEGLI/MetLife based on their current rates.

Step-by-Step FEGLI Conversion Process

Request Forms Immediately

Contact your agency's HR department upon receiving your RIF notice. Request the SF-2821 ("Agency Certification of Insurance Status") and information on obtaining the OFEGLI Conversion Application.

Obtain Completed SF-2821

Ensure your agency completes and provides you with the SF-2821 form. This verifies your coverage amounts.

Complete OFEGLI Conversion Application

Fill out the conversion application accurately, specifying which coverages you wish to convert. This form is obtained from OFEGLI/MetLife, often via your HR office or the OFEGLI website.

Submit Application & Payment (Crucial Timing)

Send the completed conversion application, the SF-2821, and the required initial premium payment directly to OFEGLI (address on application). It MUST be postmarked or received within the 62-day window from your separation date.

Keep Records

Retain copies of all submitted forms, payment confirmation, and proof of mailing (e.g., certified mail receipt). Follow up if you don't receive confirmation.

Read FEGLI Handbook (Chapter 5)

Comparing FEGLI Conversion with Alternatives

Evaluate your options carefully before the deadline expires.

Option Pros Cons Best For
FEGLI Conversion
  • Guaranteed acceptance
  • No medical exam
  • Maintains coverage continuity
  • Very high premiums
  • Limited policy type (usually whole life)
  • Strict deadline
 Those with health issues making other insurance hard/costly to get.
New Individual Policy (Private Market)
  • Potentially lower premiums (if healthy)
  • More policy types (term, whole, universal)
  • Flexible coverage amounts/terms
  • Requires medical underwriting
  • Can be denied or rated up
  • Rates based on health/age
 Healthy individuals who can qualify for good rates.
New Employer's Group Coverage
  • Often lower cost than individual
  • May have guaranteed issue amount
  • Payroll deduction
  • Requires getting a new job quickly
  • Coverage may be limited
  • Tied to employment
 Those expecting immediate re-employment with benefits.
Continue FEGLI via Retirement
  • Maintain FEGLI coverage
  • Lower premiums than conversion
  • Annuity deduction
  • Requires immediate retirement eligibility
  • Must meet 5-year rule
  • Potential coverage reductions later
 Those eligible for immediate retirement (e.g., DSR).

Frequently Asked Questions (FEGLI & RIF)

Yes. You can choose to convert your Basic insurance, Option A, any amount of Option B you had, and/or Option C, independently. You do not have to convert everything.

Premiums are significantly higher than employee rates, often 2 to 5 times (or more) depending on age and coverage amount. The cost is based on standard commercial rates for individual whole life policies at your age, without considering your health. Always get an official quote from OFEGLI/MetLife.

It typically converts to an individual whole life insurance policy from MetLife. This policy builds cash value but has higher premiums than the term insurance provided through FEGLI employment.

The 62-day deadline (31-day extension + 31-day application window) from your separation date is strict. If missed, you permanently lose the right to convert FEGLI without a medical exam. You would have to apply for private insurance, subject to underwriting.

Agency-Specific Provisions

While less common than with health benefits, some agencies might have supplemental life insurance programs or specific transition resources. Always verify with your agency HR.

Contact your agency's Human Resources or Benefits office to inquire specifically if there are any agency-funded supplemental life insurance programs, special conversion rules, or dedicated counseling resources related to FEGLI for RIF-affected employees. Examples might include certain law enforcement or intelligence community groups. Standard FEGLI rules apply unless your agency explicitly states otherwise.