Designating a Beneficiary for Federal Employees Group Life Insurance

Why Beneficiary Designation Matters

Federal employees who hold Group Life Insurance (GLI) through the Federal Employees Health Benefits Program (FEHBP) must choose a beneficiary so that, upon death, the death benefit is paid directly to that person. If no beneficiary is named, the policy defaults to the employee's spouse or next of kin, which may not reflect the employee's wishes. Designating a beneficiary is a simple, one‑time action that can prevent disputes and delays for loved ones.

How to Designate or Change a Beneficiary

Step 1: Gather Required Information

• Employee's FEHBP account number
• Full name, date of birth, and Social Security number of the intended beneficiary
• Relationship to the employee (spouse, child, parent, etc.)

Step 2: Complete the Designation Form

Employees can download the "GLI Beneficiary Designation Form" from the FEHBP website or request a paper copy from the Human Resources office. The form requires the employee's signature and the beneficiary's details. The employee may name a single primary beneficiary or up to five contingent beneficiaries, each assigned a percentage of the death benefit.

Step 3: Submit the Form

Submit the completed form electronically via the FEHBP portal or mail it to the agency's Human Resources office. Processing time is typically 2–4 weeks, after which the policy records are updated.

Step 4: Confirm the Update

Once the change is processed, employees receive confirmation by email or mail. It is prudent to keep a copy of the confirmation for personal records.

Common Mistakes to Avoid

1. Missing Contingent Beneficiaries: If the primary beneficiary predeceases the employee, the benefit may lapse unless contingent beneficiaries are named.

2. Incorrect Information: A typo in the beneficiary's name or Social Security number can delay payment. Verify all details carefully.

3. Not Updating After Life Events: Marriages, divorces, births, or deaths should prompt a review of beneficiary designations.

Legal and Tax Implications

The death benefit from GLI is generally tax‑free and paid directly to the designated beneficiary. However, if the beneficiary is a trust or a corporation, specific filing requirements may apply. Employees should consult a financial advisor for complex arrangements.

When to Review Your Designation

Major life changes such as marriage, divorce, birth of a child, or the death of a spouse warrant a review. A quick annual check ensures the policy reflects current wishes.