FEGLI, the Federal Employees' Group Life Insurance program, is group term life insurance for federal employees: Basic coverage equals your salary rounded up to the next $1,000 plus $2,000 at a flat rate for any age, and three optional tiers (A, B and C) add coverage at prices that rise in five-year age bands.
Most federal employees signed up for FEGLI on their first day, checked a box for an option or two, and never looked at it again. For years that works fine. Then a birthday ending in zero or five arrives, the paycheck deduction jumps, and the question becomes real: what is this coverage, what does it cost now, and should you keep it into retirement?
This guide answers those questions with OPM's current rates. It covers Basic coverage, the three options, how the age bands work, the reduction choice you make when you retire, and the factors that decide whether FEGLI is worth keeping.
Think of FEGLI as a rented umbrella. The rent for the Basic umbrella never changes. The rent for the bigger optional umbrellas goes up every five years, and the question at each step is whether you still need that much cover.
01What is FEGLI?
FEGLI is group term life insurance for federal employees, run by OPM and paid out by the Office of Federal Employees' Group Life Insurance (OFEGLI). It has one core tier, Basic, and three optional tiers you can add on top. Most employees are enrolled in Basic automatically unless they waive it.
Like all term insurance, FEGLI has no cash value. It pays a benefit if you die while covered. It does not build savings, and you cannot borrow against it.
- BasicYour annual basic pay rounded up to the next $1,000, plus $2,000. Flat employee rate at every age. The government pays part of the cost.
- Extra BenefitFree added Basic coverage for younger employees: double Basic at 35 or younger, falling 10 percent a year from 36 until none remains at 45 (OPM, retrieved 2026-10-11).
- Option A (Standard)A flat $10,000 of added coverage, priced by age band.
- Option B (Additional)One to five multiples of your annual basic pay, rounded up to the next $1,000, priced per $1,000 by age band.
- Option C (Family)Coverage on your spouse ($5,000 per multiple) and each eligible child ($2,500 per multiple), up to five multiples, priced per multiple by age band (OPM, retrieved 2026-10-11).
02How much does Basic FEGLI cost?
Employees pay $0.16 every two weeks, or $0.3467 a month, for each $1,000 of Basic coverage, no matter their age (OPM, retrieved 2026-10-11). The government pays the rest of the Basic premium while you are working. That flat rate is what makes Basic one of the least expensive group life benefits available.
OPM's own example shows how the Extra Benefit works: a 40-year-old with a $48,000 Basic Insurance Amount has $72,000 of coverage, because the Extra Benefit at 40 adds 50 percent (OPM, retrieved 2026-10-11). The Extra Benefit costs nothing and disappears by 45.
03How much do Options A, B and C cost by age?
The optional tiers are priced in five-year age bands, and the price climbs steeply after 50. Here are OPM's employee rates from our FEGLI data file (OPM, retrieved 2026-07-05):
| Age band | Option A, biweekly for $10,000 | Option B, biweekly per $1,000 | Option C, biweekly per multiple |
|---|---|---|---|
| Under 35 | $0.20 | $0.02 | $0.20 |
| 35-39 | $0.20 | $0.02 | $0.24 |
| 40-44 | $0.30 | $0.03 | $0.37 |
| 45-49 | $0.60 | $0.06 | $0.53 |
| 50-54 | $1.00 | $0.10 | $0.83 |
| 55-59 | $1.80 | $0.18 | $1.33 |
| 60-64 | $6.00 | $0.40 | $2.43 |
| 65-69 | $6.00 | $0.48 | $2.83 |
| 70-74 | $6.00 | $0.86 | $3.83 |
| 75-79 | $6.00 | $1.80 | $5.76 |
| 80 and over | $6.00 | $2.88 | $7.80 |
OPM publishes Option A's top employee band as "60 and over" at $6.00, shown above in each older row. Option B and C have no government contribution, so you pay the full rate. The jump from the 55-59 band to the 60-64 band more than doubles the Option B price and more than triples Option A.
Our FEGLI cost by age tool runs these rates on your salary and the options you choose.
04Worked example: one employee's FEGLI over time
Take an employee earning $84,500 who carries Basic plus Option B at two multiples. This is an educational estimate using OPM's current rates.
- 01
Basic coverage
$84,500 rounds up to $85,000, plus $2,000, for $87,000 of Basic. Cost: 87 x $0.16 = $13.92 every two weeks at any age.
- 02
Option B coverage
Two multiples of $85,000 is $170,000.
- 03
Option B at age 52
170 x $0.10 = $17.00 every two weeks.
- 04
Option B at age 62
170 x $0.40 = $68.00 every two weeks, four times the cost at 52 for the same coverage.
- 05
Total at 62
$13.92 + $68.00 = $81.92 every two weeks, or about $2,130 a year, for $257,000 of coverage.
Your record, not our example
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05Can you keep FEGLI into retirement?
You can continue FEGLI into retirement if you retire on an immediate annuity, are enrolled on your retirement date, and have had the coverage for the five years of service immediately before retirement, or for all of your service since your first opportunity to enroll if that is shorter (OPM, retrieved 2026-10-11). OPM applies the test separately to Basic, to each option, and to each multiple of Option B and Option C. It cannot waive the requirement, and gaps cannot be bought back with premiums.
That last point catches people. If you added a third multiple of Option B three years before retiring, that third multiple does not carry into retirement, even though the first two do.
- Basic is required for options. You must keep Basic to keep any option in retirement.
- You choose at retirement. You make your reduction elections on Standard Form 2818 as part of the retirement application. If you do not file it, Basic defaults to the 75 percent reduction (OPM, retrieved 2026-10-11).
- Coverage is based on your final salary. Your Basic Insurance Amount in retirement is the amount in effect when you retire.
06What are the 75%, 50% and no reduction choices?
When you retire, you decide how your Basic coverage behaves after 65. The three choices trade coverage for cost (OPM, retrieved 2026-10-11).
| Choice | Monthly cost per $1,000 before 65 | Monthly cost per $1,000 after 65 | What happens to coverage |
|---|---|---|---|
| 75% reduction | $0.3467 | Free | Drops 2% a month after 65 until 25% remains |
| 50% reduction | $1.0967 | $0.75 for life | Drops to 50% of the original amount |
| No reduction | $2.5967 | $2.25 for life | Stays at 100% |
Using the $87,000 Basic amount from the worked example: the 75 percent reduction costs about $30.16 a month until 65 and leaves $21,750 of free coverage for life. The 50 percent reduction costs about $95.41 a month until 65, then $65.25 a month, for $43,500 of coverage. No reduction costs about $225.91 a month until 65, then $195.75 a month, to keep the full $87,000.
For the options, Option A in retirement reduces after 65 and becomes free. Option B and Option C are free after 65 if you choose full reduction; if you choose no reduction, you keep paying age-banded annuitant rates, for example $1.04 a month per $1,000 of Option B at ages 65-69 (OPM, retrieved 2026-10-11).
The 75 percent reduction is the low-cost default. The other two choices buy you more coverage for life, at a price you pay for life.
07Is FEGLI worth keeping?
That depends on why you have life insurance in the first place. FEGLI is neither a good deal nor a bad deal in the abstract. It is a good fit for some needs at some ages and an expensive fit for others.
- Who depends on your income? If a spouse would need your annuity or salary replaced, the amount of coverage matters more than its price.
- What does your survivor annuity already provide? A FERS survivor annuity replaces part of your pension for a spouse, which may reduce how much life insurance you need.
- Your health. FEGLI coverage you already hold needs no medical exam to keep. If your health has changed, comparable private coverage may cost more or be unavailable.
- Your age band. Basic stays level. Option B and Option C rates rise in later age bands, which is when many people compare them with other coverage.
- Estate and final expenses. Some people keep a smaller, permanent amount just for funeral costs or to leave a set gift.
- Canceling is generally permanent. Once you cancel FEGLI, you generally cannot re-enroll, so time any change carefully.
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08How do FEGLI beneficiaries work?
FEGLI pays the people named on your Standard Form 2823, Designation of Beneficiary. If there is no valid designation, assignment, or court order on file, OPM pays in a fixed order of precedence: your spouse, then your children, then your parents, then the executor or administrator of your estate, then your next of kin (OPM, retrieved 2026-10-11).
The order of precedence is fine for many families. A designation matters when you want a different result, such as naming a trust, splitting proceeds unevenly, or making sure a former spouse is not paid. Our beneficiaries guide covers SF 2823 alongside the other federal designation forms.
09Moving forward with your FEGLI decisions
FEGLI is easy to ignore and expensive to get wrong at the wrong moment. The five-year rule means the coverage you want in retirement must be in place five years before your last day, and the reduction choice you make at retirement shapes your costs for decades.
Run your own numbers with our FEGLI cost by age tool, check the FEHB guide for the matching five-year rule on health coverage, and make sure your beneficiary forms say what you mean.
FFEBA is an education organization. If you want someone to look at your own numbers, we can match you with a Federal Retirement Consultant (FRC), a professional trained on federal benefits. The FRC designation is listed with FINRA. The first review is free, nothing is booked until you choose a time, and you are never obligated to work with anyone we introduce. Get matched with an FRC.
10Questions federal employees ask
How much is Basic FEGLI coverage?
Basic coverage equals your annual basic pay rounded up to the next $1,000, plus $2,000. If you are 35 or younger, an Extra Benefit doubles it at no cost; the extra amount shrinks 10 percent a year from age 36 and ends at 45 (OPM, retrieved 2026-10-11).
What does Basic FEGLI cost?
Employees pay $0.16 every two weeks per $1,000 of Basic coverage, the same rate at every age. That rate has been in effect since the first pay period on or after October 1, 2021 (OPM, retrieved 2026-10-11).
Can I keep FEGLI when I retire?
Yes, if you retire on an immediate annuity and had the coverage for the five years of service immediately before retirement, or for all service since your first opportunity to enroll. Each option and each multiple must meet the test on its own, and OPM cannot waive it (OPM, retrieved 2026-10-11).
What is the 75 percent reduction for FEGLI in retirement?
It is the default Basic choice at retirement. Starting the second month after you reach 65 or retire, whichever is later, Basic coverage drops 2 percent a month until 25 percent of the original amount remains. You pay a premium until 65, then that remaining coverage is free for life (OPM, retrieved 2026-10-11).
Is FEGLI worth keeping?
It depends on your age, health, who depends on your income, and what other coverage costs you. Basic is inexpensive at any age, while Option B and Option C become expensive after 60. FEGLI also requires no medical exam to keep, which matters if your health has changed.
Who gets my FEGLI if I die?
The people named on your Designation of Beneficiary, Standard Form 2823. Without a valid designation, assignment, or court order, OPM pays in a fixed order: spouse, then children, then parents, then your estate's executor or administrator, then next of kin (OPM, retrieved 2026-10-11).
Reviewed by the FFEBA education team. Last reviewed October 2026.
Sources
- U.S. Office of Personnel Management, FEGLI program information and premium rates (FFEBA data file), retrieved 2026-07-05
- U.S. Office of Personnel Management, FEGLI program information (annuitant reduction rates re-checked), retrieved 2026-10-11
- U.S. Office of Personnel Management, Learn more about life insurance benefits and retirement, retrieved 2026-10-11
- U.S. Office of Personnel Management, Five-year/all opportunity rule for continuing life insurance into retirement, retrieved 2026-10-11
- U.S. Office of Personnel Management, FEGLI Handbook, retrieved 2026-10-11
- U.S. Office of Personnel Management, Designation of Beneficiary for the FEGLI Program, retrieved 2026-10-11
Every government figure on this page carries its source and retrieval date. Worked examples are educational estimates on the assumptions shown, not a projection of any person's benefit. FFEBA is an education organization, not a financial advisor.
