What is FEGLI? FEGLI stands for Federal Employee’s Group Life Insurance and is a life insurance program for Federal and Postal employees and annuitants. The law related to FEGLI is authorized by law and can be found in Chapter 87 of Title 5, United States Code. The Office of Personnel Management (OPM) administers the Program and sets the premiums. The FEGLI regulations are in Title 5 of the Code of Federal Regulations, Part 870.
FEGLI is group term life insurance. It does not build up cash value. You cannot take a loan out against your FEGLI insurance.
OPM has a contract with the Metropolitan Life Insurance Company (MetLife) to provide this life insurance. MetLife has an administrative office called the Office of Federal Employees’ Group Life Insurance (OFEGLI). OFEGLI is the contractor that adjudicates claims under the FEGLI Program.
Many things in life can be complicated and certainly, life insurance can be one of those things. However, that is not the case with FEGLI. There are two types of life insurance under the FEGLI Program: Basic and Optional. Basic insurance pays out your annual rate of basic pay upon death. You may also purchase optional life insurance: Option A ($10,000); Option B (one, two, three, four, or five multiples of your annual rate of basic pay); and Option C (multiple(s) payable to the insured individual upon the death of a spouse or eligible child).
As part of the FEGLI life insurance program there is also coverage for accidental death and dismemberment (AD&D) coverage. AD&D coverage is an automatic part of Basic insurance and Option A insurance (if elected) for employees, at no additional cost. There is no accidental death and dismemberment coverage with Options B and C, and there is none for annuitants or enrollees on workers’ compensation.
Accidental death benefits are payable when you sustain injuries by accidental means and, within one year afterwards, you die resulting directly from those injuries. Under Basic insurance, accidental death benefits are equal to your BIA (without the Extra Benefit). Under Option A, accidental death benefits are equal to your Option A coverage. Accidental dismemberment benefits are payable when you sustain injuries by accidental means and, within one year afterwards, you lose a limb or sight in one or both eyes resulting directly from those injuries. Under Basic insurance, accidental dismemberment benefits are equal to one-half of your BIA for the loss of one limb or sight in one eye. Under Option A, accidental dismemberment benefits are equal to one-half of your Option A coverage for the loss of one limb or sight in one eye.
The thing to know about a FEGLI claim that is being denied, is that there are special rules set forth by the government that apply to FEGLI claims. When a claim is not being paid promptly, it is vital that a life insurance attorney who has handled FEGLI claims is contacted as soon as possible.