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FEGLI Calculator

Calculate your FEGLI life insurance premiums, coverage amounts, and benefits instantly.

FEGLI Coverage Calculator

Your current annual salary
Current age (18-80)
Years in federal service
Select Coverage: All Options
Additional coverage multiples for Option B
Family coverage units
Include Post-Retirement Reduction

Select Coverage Types

Included

Automatic coverage equal to your annual salary plus $2,000, rounded up to next $1,000.

$10,000

Additional $10,000 coverage regardless of salary.

Multiple of Salary

1-5 multiples of your annual salary (after first $2,000).

Family Coverage

Coverage for spouse and eligible children.

Compare FEGLI Options

Coverage Type Amount Monthly Premium Annual Premium Cost per $1,000 Best For

FEGLI Retirement Planning

Planned retirement age (55-70)
Current Basic coverage amount

Post-Retirement Coverage Reduction

Your FEGLI Analysis

FEGLI Premium Breakdown

Coverage Type Coverage Amount Monthly Premium Annual Premium Cost per Month per $1,000 Status

Related Calculators

Frequently Asked Quentions

1. What is the minimum salary required for FEGLI Basic coverage?
There is no minimum salary requirement for Basic FEGLI coverage. All eligible federal employees are automatically enrolled in Basic coverage regardless of salary level, with coverage calculated as salary plus $2,000 rounded up to the next $1,000.
2. Can I increase my FEGLI coverage after Open Season?
Generally, you can only increase optional FEGLI coverages (Options A, B, and C) during an Open Season or with a qualifying life event (like marriage, birth of a child, or promotion). Basic coverage increases automatically with salary increases.
3. What happens to my FEGLI when I retire?
Upon retirement, you have three choices for Basic coverage: 75% Reduction, 50% Reduction, or No Reduction. Optional coverages (A, B, C) continue at full cost with no government contribution. All coverage reduces 2% monthly beginning at age 65.
4. Is FEGLI coverage enough for my family's needs?
For most federal employees, FEGLI alone is insufficient for comprehensive family protection. Basic coverage equals approximately one year's salary, which is below the recommended 5-10x salary coverage. Supplementing with private term life insurance is often advisable.
5. How are FEGLI premiums calculated for older employees?
FEGLI uses age-band pricing where premiums increase at specific age thresholds (35, 40, 45, 50, 55, 60, 65, 70, 75). The cost per $1,000 of coverage rises significantly with age, making FEGLI potentially expensive for older employees compared to private market options.
6. Can I keep FEGLI if I leave federal service?
If you have at least 5 years of civilian service, you may convert your FEGLI coverage to an individual policy without medical underwriting within 31 days of separation. However, conversion premiums are typically much higher than group rates.
7. What is the difference between FEGLI Option B and private term life?
Option B provides additional coverage in multiples of salary with premiums based on age brackets. Private term life offers level premiums for the term period (10, 20, 30 years) and may be cheaper for younger employees but lacks the guaranteed issue feature of Option B during Open Season.
8. How do I file a FEGLI death claim?
Beneficiaries should contact the employing agency's human resources office or the Office of Federal Employees' Group Life Insurance (OFEGLI). Required documents typically include a death certificate, claim form (FE-6), and proof of beneficiary status. Processing usually takes 4-6 weeks.
Are FEGLI death benefits taxable?
FEGLI death benefits are generally not subject to federal income tax. However, they may be included in the deceased's estate for estate tax purposes if the estate exceeds the federal exemption limit ($12.92 million in 2023).
10. Can I have both FEGLI and private life insurance?
Yes, you can and should have both. Many federal employees use FEGLI for basic guaranteed coverage and supplement with private term life for additional protection at lower cost, especially when young and healthy. This layered approach provides optimal coverage and cost efficiency.

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What is FEGLI (Federal Employees’ Group Life Insurance)?

The Federal Employees’ Group Life Insurance (FEGLI) Program is the largest group life insurance program in the world, providing life insurance coverage to federal employees, retirees, and their families. Established in 1954, FEGLI offers affordable group rates and guaranteed coverage to eligible federal workers without requiring medical examinations for basic coverage.

Key Features of FEGLI:

  • Guaranteed Issue: Basic coverage is automatic for eligible employees without medical underwriting
  • Group Rates: Premiums are typically lower than individual policies due to group purchasing power
  • Multiple Coverage Options: Basic insurance plus three optional coverages (A, B, and C)
  • Portability: Coverage can continue into retirement with specific conditions
  • Family Coverage: Option C provides coverage for spouses and eligible children

How Does FEGLI Work?

FEGLI operates as a term life insurance program where premiums are deducted directly from federal employees’ paychecks. The program consists of four main components:

FEGLI Coverage Structure:

  1. Basic Insurance: Automatically provided to all eligible employees
  2. Option A – Standard Optional Insurance: Additional $10,000 coverage
  3. Option B – Additional Optional Insurance: 1-5 multiples of annual salary (after first $2,000)
  4. Option C – Family Optional Insurance: Coverage for spouse and eligible children

How to Use the FEGLI Calculator

Our FEGLI calculator simplifies the complex calculations involved in determining your coverage amounts and premiums. Follow these steps:

Step-by-Step Calculation Guide:

  1. Enter Your Annual Salary: Input your current gross annual salary as a federal employee
  2. Specify Your Age: Enter your current age (18-80 years)
  3. Years of Service: Input your total years of federal service
  4. Select Coverage Options: Choose which FEGLI components you want to calculate
  5. Adjust Multipliers: For Option B, select your desired salary multiple (1-5x)
  6. Set Family Units: For Option C, choose the number of coverage units
  7. Click Calculate: Get instant premium calculations and coverage details

Mathematical Formulas Behind FEGLI Calculations

Basic Insurance Formula:

Coverage = RoundUp[(Annual Salary + $2,000) ÷ $1,000] × $1,000

Where RoundUp always rounds to the next highest thousand

Basic Premium Calculation:

For first $50,000: Premium = (Coverage up to $50,000 ÷ 1000) × $0.325 × Age Factor

For amount over $50,000: Premium = (Coverage over $50,000 ÷ 1000) × $0.075 × Age Factor

Age Factor Table:

Under 35: 0.9 | 35-44: 1.0 | 45-54: 1.2 | 55-64: 1.5 | 65+: 2.0

Option B Coverage Formula:

Coverage = (Annual Salary – $2,000) × Selected Multiple

Minimum coverage: $0 (if salary ≤ $2,000)

Maximum coverage: 5 × (Salary – $2,000)

Post-Retirement Reduction Formula:

Post-65 Coverage = Original Coverage × (0.98)Months After 65

Where: Months After 65 = (Current Age – 65) × 12

This results in a 2% monthly reduction starting at age 65

Real-World Examples and Calculations

Example 1: Mid-Career Federal Employee

Scenario Details:

  • Annual Salary: $75,000
  • Age: 45 years
  • Years of Service: 15 years
  • Coverage Selected: Basic + Option A + Option B (2x) + Option C (2 units)

Calculations:

  1. Basic Coverage: RoundUp[($75,000 + $2,000) ÷ $1,000] × $1,000 = $78,000
  2. Basic Premium: First $50,000: ($50,000 ÷ 1000) × $0.325 × 1.2 = $19.50
    Remaining $28,000: ($28,000 ÷ 1000) × $0.075 × 1.2 = $2.52
    Total Basic Premium = $22.02/month
  3. Option B Coverage: ($75,000 – $2,000) × 2 = $146,000
  4. Option B Premium: Age 45 rate = $0.130 per $1,000 × 2 multiples = $0.26/month

Total Monthly Premium: $22.02 (Basic) + $6.50 (Option A) + $0.26 (Option B) + $5.20 (Option C) = $33.98/month

Total Annual Cost: $33.98 × 12 = $407.76/year

Example 2: Nearing Retirement Employee

Scenario Details:

  • Annual Salary: $95,000
  • Age: 62 years
  • Planning to Retire at: 65 years
  • Coverage Selected: Basic + Option A only

Post-Retirement Calculation:

  1. Current Basic Coverage: $97,000 (rounded up from $95,000 + $2,000)
  2. Months from 65 to 67: (67 – 65) × 12 = 24 months
  3. Reduction Factor: (0.98)24 = 0.617
  4. Age 67 Coverage: $97,000 × 0.617 = $59,849 → Rounded to $60,000

Key Insight: By age 67, basic coverage reduces by approximately 38% from the pre-retirement amount. This significant reduction highlights the importance of supplemental retirement planning.

Advanced Applications and Strategies

FEGLI as Part of Comprehensive Financial Planning

FEGLI should not be viewed in isolation but rather as one component of a comprehensive financial plan for federal employees. Consider these advanced strategies:

Strategy 1: Layered Coverage Approach

  • Foundation: Maintain Basic FEGLI for guaranteed coverage
  • Income Replacement: Use Option B to cover 5-10x annual salary
  • Supplemental: Consider private term life for additional coverage
  • Special Needs: Use Option C for family protection

Strategy 2: Retirement Transition Planning

As you approach retirement, consider these FEGLI decisions:

  1. Age 60-64: Evaluate whether to maintain optional coverages given premium increases
  2. Age 65: Decide on post-retirement coverage elections (75% Reduction, 50% Reduction, or No Reduction)
  3. Post-65: Monitor the 2% monthly reduction and plan for supplemental coverage
  4. Alternative Options: Explore Federal Long Term Care Insurance Program (FLTCIP) for extended care needs

Tax Implications and Advantages

Tax Aspect FEGLI Treatment Planning Consideration
Premium Payments Made with after-tax dollars No current tax deduction available
Death Benefits Generally income tax-free to beneficiaries May be subject to estate tax if estate exceeds exemption
Living Benefits Accelerated benefits may be tax-free if terminally ill Consult tax advisor for specific situations
Assignment of Benefits Can be assigned to irrevocable life insurance trust May help with estate tax planning

Limitations of FEGLI Coverage

Important Limitations to Consider:

  • Post-Retirement Reductions: Significant coverage decreases starting at age 65
  • No Cash Value: Pure term insurance with no investment component
  • Limited Flexibility: Standardized options with little customization
  • Beneficiary Restrictions: Limited options for non-traditional families
  • Portability Limitations: Coverage may terminate if employment ends under certain conditions
  • No Living Benefits Rider: Unlike some private policies, no chronic illness riders

Comparison with Private Life Insurance

Feature FEGLI Private Term Life Recommendation
Guaranteed Issue ✓ Basic coverage Usually requires underwriting FEGLI for guaranteed coverage
Cost for Young Employees Higher than market Often lower Compare both options
Cost for Older Employees May be competitive Increases significantly with age FEGLI may be better
Post-Retirement Coverage Reduces significantly Can be level term Private for retirement needs
Convertibility Limited options Convertible to permanent Private for flexibility

Best Practices for FEGLI Management

Top Recommendations for Federal Employees:

  1. Annual Review: Recalculate your FEGLI needs each year during Open Season
  2. Life Event Adjustments: Update beneficiaries after marriage, divorce, births, or deaths
  3. Coordination with TSP: Ensure FEGLI complements your Thrift Savings Plan
  4. Documentation: Keep copies of all FEGLI election forms and beneficiary designations
  5. Family Communication: Ensure beneficiaries know about the coverage and claims process
  6. Professional Advice: Consult with a federal benefits specialist for complex situations

Open Season Strategy

FEGLI Open Season occurs periodically (not annually). During Open Season, employees can:

  • Enroll in optional coverages without evidence of insurability
  • Increase existing optional coverage
  • Add family coverage under Option C
  • Make changes to beneficiary designations

Pro Tip: Mark your calendar for Open Season announcements. These opportunities are infrequent and provide the only chance to increase coverage without medical underwriting.

Future Trends and Considerations

Digital Transformation in Federal Benefits

The federal government is increasingly moving toward digital platforms for benefits management. Expect these developments:

  • Enhanced Online Calculators: More sophisticated tools like ours for precise planning
  • Mobile Access: Increased accessibility through government mobile apps
  • Integration with EHR: Potential links with electronic health records for streamlined claims
  • AI-Powered Planning: Artificial intelligence for personalized coverage recommendations

Legislative Changes on the Horizon

Potential Future Changes to FEGLI:

  • Premium Adjustments: Potential rate changes based on claims experience
  • Expansion of Living Benefits: Possible addition of chronic illness riders
  • Enhanced Portability: Improved options for separating employees
  • Digital Beneficiary Management: Streamlined online beneficiary updates

Final Recommendations and Action Steps

Immediate Actions for Federal Employees:

  1. Calculate Your Current Coverage: Use our FEGLI calculator to understand your exact premiums and benefits
  2. Review Beneficiary Designations: Ensure they reflect your current wishes
  3. Compare with Private Options: Get quotes from private insurers for comparison
  4. Integrate with Overall Plan: Consider FEGLI as part of your complete financial strategy
  5. Plan for Retirement: Understand the post-retirement reductions and plan accordingly
  6. Document Everything: Keep records of all elections, calculations, and communications

The Role of Technology in FEGLI Management

Tools like our FEGLI calculator represent the future of federal benefits management. By leveraging technology, federal employees can:

  • Make informed decisions based on precise calculations
  • Model different scenarios for career and retirement planning
  • Compare FEGLI with private market alternatives
  • Stay updated on legislative changes affecting their coverage
  • Plan for life transitions with accurate projections

Remember:

FEGLI is a valuable benefit, but it’s not one-size-fits-all. Your optimal coverage depends on your specific circumstances including age, salary, family situation, health status, and retirement plans. Regular reviews and adjustments are essential to ensure your life insurance protection aligns with your evolving needs.

⚠️ Disclaimer:

This FEGLI calculator and accompanying content are provided for informational and educational purposes only. While we strive for accuracy, the calculations are estimates based on publicly available FEGLI program information and should not be considered as official government guidance or financial advice.

Important Notes:

  • Actual FEGLI premiums and coverage are determined by the U.S. Office of Personnel Management (OPM)
  • Premium rates and program details may change without notice
  • This calculator does not account for all possible scenarios or special circumstances
  • For official FEGLI information, always refer to OPM.gov and consult with your agency’s benefits officer
  • This tool is not affiliated with or endorsed by the U.S. Federal Government or OPM
  • Users should verify all calculations with official sources before making financial decisions
  • We are not responsible for any financial decisions made based on this calculator’s results

For definitive information about your FEGLI coverage, please contact:
U.S. Office of Personnel Management
Retirement and Benefits Service
Or visit: OPM.gov/insurance

By using this calculator, you acknowledge that CalculatorMafia.com and its creators are not liable for any inaccuracies, errors, or omissions in the calculations or information provided.

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