What the FEGLI Handbook Covers
The handbook is the definitive guide for federal employees, retirees, and their families who participate in the FEGLI program. It outlines the four coverage levels—Basic, Voluntary, Family, and Accidental—along with eligibility criteria, premium calculations, and the claims process. It also contains policyholder rights, coverage adjustments, and how to file a claim or appeal a denial.
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Basic Coverage Explained
Basic coverage is mandatory and provides a death benefit of $50,000 to the employee's estate. The handbook details the calculation of the basic premium, which is a percentage of the employee's salary and is deducted from the pay system. It explains the eligibility for federal retirees and the special rules for certain positions, such as the Federal Reserve Board and the Department of Defense.
Voluntary and Family Coverage Options
Voluntary coverage allows employees to purchase additional death benefits, up to 200% of their base salary. The handbook lists the available coverage levels (1×, 2×, 3×, 4×, 5×) and the corresponding premium rates. Family coverage is optional for spouses and dependents, covering them with a benefit equal to the employee's Basic coverage. The handbook includes tables of premium rates by age and coverage level, and it explains how to adjust coverage during open enrollment or qualifying life events.
Accidental Death and Dismemberment (AD&D)
AD&D is an add‑on that pays an additional benefit if death or loss of limb occurs due to an accident. The handbook lists the benefit amounts for different levels of dismemberment and outlines the circumstances that qualify. It also provides guidance on how to file an AD&D claim and the required medical documentation.
Claims Process and Administration
To file a claim, beneficiaries must submit Form 1060, the Death Certificate, and any required supporting documents. The handbook describes the timeline for processing claims, the role of the Office of Personnel Management (OPM), and the appeal process if a claim is denied. It also explains how to access the online FEGLI portal for real‑time claim status updates.
Policyholder Rights and Responsibilities
Employees have the right to review their coverage, update beneficiary designations, and cancel coverage under certain conditions. The handbook outlines the procedures for updating beneficiaries, the impact of changes on premiums, and the deadlines for making changes during open enrollment or after a qualifying life event. It also cautions against the misuse of policy documents and the legal consequences of fraudulent claims.
Administrative Support for HR and Payroll
HR professionals and payroll personnel find a dedicated section that explains how to integrate FEGLI enrollment data into payroll systems, reconcile premium deductions, and handle employee inquiries. The handbook includes sample forms for enrollment, renewal, and cancellation, and it lists contact information for the FEGLI Office.
Key Takeaways
The FEGLI handbook is a comprehensive resource that clarifies coverage options, premium calculations, and the claims process for federal employees. It is essential for employees to review the handbook annually to ensure their coverage aligns with their needs and to understand the rights and responsibilities associated with each policy level.