What Is FEGLI and How Does It Work Through the National Life Group?
FEGLI stands for the Federal Employees Group Life Insurance program, a workplace benefit available to federal employees and retirees. The National Life Group, through its subsidiary Life Insurance Company of the Southwest, administers the coverage, processes claims, and manages policy records. Unlike many group life plans, FEGLI is designed to be portable and modular, letting participants build basic, option, and family coverage in layers. For most federal workers, it is the default life insurance foundation unless an individual declines or opts for an alternative.
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The program is overseen by the Office of Personnel Management (OPM), which sets eligibility rules, while the National Life Group handles the day-to-day administration, billing, and contract servicing. Understanding that split — OPM for rules, National Life Group for execution — helps when you contact either entity with a question about your policy.
Coverage Options Under FEGLI
FEGLI is built around three coverage components, each of which operates differently from standard individual life insurance:
- Basic Life Insurance: Automatically provided to most employees, equal to your annual salary rounded to the next $1,000 plus $2,000. Premiums are shared between you and the government, and coverage is equal regardless of age or health at enrollment.
- Option A (Standard Additional Coverage): A flat $10,000 of term life insurance. Premium is age-based, meaning it rises as you get older, and coverage is not guaranteed beyond age 65 unless you apply before that window.
- Option B (Additional Flexible Coverage): Lets you purchase multiples of your basic pay, up to five times your salary. Premiums are community-rated at first but shift to individually rated after age 55, which can cause significant increases.
- Option C (Family Protection): Covers eligible dependents — spouse and children — in units of $5,000 per spouse and $2,500 per child, up to a set maximum. Premiums are level for the duration of the policy.
Who Is Eligible and How Do You Enroll?
Full-time and part-time federal employees, including postal workers, are generally eligible from their first day of service. Temporary employees with a one-year or longer appointment also qualify. Enrollment is automatic for Basic coverage for most new hires; Options A, B, and C require affirmative action during open seasons or within 31 days of a qualifying life event such as marriage, birth, or adoption.
The National Life Group does not set eligibility — OPM does — but the insurer is the entity you will interact with for beneficiary updates, premium billing questions, and claims. Keeping your contact information current with the National Life Group helps avoid delays if a claim ever needs to be filed.
How FEGLI Premiums and Costs Are Structured
Because FEGLI is group insurance, premiums are not individually underwritten at the outset. That means a 25-year-old and a 50-year-old in the same job classification pay similar rates for Basic coverage. The catch comes with Options A and B, where premiums increase in steps, and with Option B's shift to individually rated pricing at age 55.
| Coverage | Premium Structure | Key Consideration |
|---|---|---|
| Basic | Shared government-employee rate | Equal for all enrollees; no medical underwriting |
| Option A | Age-based, increases every five years | Fixed $10,000 benefit; can be declined |
| Option B | Community-rated, then individually rated | Premiums can jump sharply after age 55 |
| Option C | Level premiums | Coverage tied to family size; units can be adjusted |
Converting FEGLI After Separation or Retirement
When federal employment ends, FEGLI coverage does not automatically terminate. Basic coverage ends 31 days after separation unless you convert it. Options A and B can be converted to individual policies through the National Life Group, but the new policies are fully medically underwritten, meaning your health at conversion matters. Option C coverage ends when the youngest dependent child reaches age 22 or marries, whichever comes first.
Working With the National Life Group on Claims and Service
Filing a FEGLI claim is handled directly with the National Life Group, not OPM. Beneficiaries submit a claim form, a certified death certificate, and any other requested documentation. The insurer's role is to verify coverage and process payment according to the contract terms. For living policyholders, the National Life Group handles premium billing changes, beneficiary updates, and policy status inquiries. Keeping copies of your FEGLI election forms and premium receipts is a practical habit, especially if you switch payroll offices or agencies during your career.