Life insurance is an important financial tool that provides financial protection to your loved ones in the event of your death. As a federal employee, you have access to various benefits, including basic life insurance coverage. The cost of basic life insurance for federal employees depends on several factors, such as your age, salary, and the coverage amount you choose.
The Federal Employees’ Group Life Insurance (FEGLI) Program offers basic life insurance coverage to federal employees. The program is administered by the Office of Personnel Management (OPM) and provides coverage to more than four million federal employees and retirees.
The cost of basic life insurance under the FEGLI program is based on a formula that takes into account your age and salary. The formula is as follows:
– For employees under the age of 35, the cost is $0.15 per $1,000 of coverage.
– For employees aged 35-39, the cost is $0.23 per $1,000 of coverage.
– For employees aged 40-44, the cost is $0.43 per $1,000 of coverage.
– For employees aged 45-49, the cost is $0.66 per $1,000 of coverage.
– For employees aged 50-54, the cost is $1.20 per $1,000 of coverage.
– For employees aged 55-59, the cost is $2.24 per $1,000 of coverage.
– For employees aged 60-64, the cost is $3.98 per $1,000 of coverage.
– For employees aged 65 and over, the cost is $6.55 per $1,000 of coverage.
To determine the cost of your basic life insurance coverage, multiply your salary rounded up to the next thousand by the appropriate cost factor. For example, if your salary is $45,000 and you are aged 40, the cost of your basic life insurance coverage would be $0.43 multiplied by 45, which equals $19.35 per year.
Now, let’s address some common questions about basic life insurance for federal employees:
1. Can I change my basic life insurance coverage amount?
Yes, you can increase or decrease your basic life insurance coverage amount during open seasons or when you experience a qualifying life event.
2. Can I name multiple beneficiaries for my basic life insurance coverage?
Yes, you can name multiple beneficiaries and designate the percentage of the benefit they will receive.
3. Can I continue my basic life insurance coverage after retirement?
Yes, you can continue your basic life insurance coverage into retirement, but the cost may increase.
4. Can I convert my basic life insurance coverage to an individual policy after retirement?
Yes, you have the option to convert your basic life insurance coverage to an individual policy within 31 days after retirement.
5. Can I convert my basic life insurance coverage if I leave federal service before retirement?
No, you cannot convert your basic life insurance coverage if you leave federal service before retirement.
6. Can I cancel my basic life insurance coverage at any time?
Yes, you can cancel your basic life insurance coverage at any time.
7. Can I reinstate my basic life insurance coverage after canceling it?
Yes, you can reinstate your basic life insurance coverage within 31 days after cancelation without providing evidence of insurability.
8. Can I assign my basic life insurance coverage to someone else?
Yes, you can assign your basic life insurance coverage to another person or entity.
9. Can I designate a trust as a beneficiary for my basic life insurance coverage?
Yes, you can designate a trust as a beneficiary for your basic life insurance coverage.
10. Can I purchase additional life insurance coverage through the FEGLI program?
Yes, you can purchase additional life insurance coverage through the FEGLI program.
11. Does the cost of basic life insurance coverage increase with age?
Yes, the cost of basic life insurance coverage increases as you get older.
12. Can I change my basic life insurance coverage amount after retirement?
No, you cannot change your basic life insurance coverage amount after retirement.
13. Can I enroll in FEGLI after retirement?
No, you cannot enroll in FEGLI after retirement.
In conclusion, the cost of basic life insurance for federal employees is determined by a formula that takes into account your age and salary. It is an important benefit that provides financial protection to your loved ones. Understanding the details of your basic life insurance coverage and the available options is essential for making informed decisions about your financial future.
