Quick answer
If you retire from the United States Postal Service, your basic Federal Employees' Group Life Insurance (FEGLI) does not automatically end, but you must actively elect to continue it and pay the required premiums. Without election, coverage stops on your retirement date.
- Quick answer
- Understanding FEGLI and USPS Life Insurance
- Retiree Options for Basic FEGLI
- 1. Elect to continue basic coverage
- 2. Let the coverage lapse
- Key Dates and Deadlines
- Cost of Continuing Basic Coverage
- Steps to Keep Your Coverage
- What Happens After Five Years?
- Comparing FEGLI Continuation to Private Life Insurance
- Frequently Asked Questions
- Do I need to pay for optional FEGLI coverage after retirement?
- Can I transfer FEGLI to a spouse?
- What if I miss the 60‑day election window?
- Is there a tax advantage?
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Understanding FEGLI and USPS Life Insurance
The USPS offers its employees group life insurance through the Federal Employees' Group Life Insurance (FEGLI) program, which includes:
- Basic (or "base") coverage: 1 × your annual salary, up to $10,000, paid by the government at no cost while you're an active employee.
- Optional coverage: Additional amounts you can purchase, also paid by you.
When you become a retiree, the rules change because you are no longer an active federal employee.
Retiree Options for Basic FEGLI
Retirees have two main paths:
1. Elect to continue basic coverage
You may elect to keep the basic FEGLI benefit for up to five years after retirement. You will pay the entire premium yourself, which is based on your age and the amount of coverage.
2. Let the coverage lapse
If you do not submit an election form within the required window (usually 60 days after retirement), the basic coverage ends on your last day of active service.
Key Dates and Deadlines
| Date or Period | Event | Why It Matters |
|---|---|---|
| Retirement Day | Basic FEGLI automatically terminates unless you elect continuation | Prevent a coverage gap |
| Within 60 days | Submit FEGLI continuation election (Form SF‑50 or FEGLI election form) | Eligibility to keep basic coverage for up to 5 years |
| Annually thereafter | Pay premium (age‑based) | Maintains continuous coverage |
Cost of Continuing Basic Coverage
The premium you pay as a retiree is calculated using the same actuarial tables that active employees use, but you cover the full cost. Rough estimates (2023 rates) are:
- Age 55‑59: $1.20 per $1,000 of coverage per month
- Age 60‑64: $1.55 per $1,000 per month
- Age 65‑69: $2.10 per $1,000 per month
For a retiree with a $70,000 salary (the maximum basic coverage), the monthly premium could range from $84 to $147 depending on age. Exact rates are published annually by the Office of Personnel Management (OPM).
Steps to Keep Your Coverage
1. Review your FEGLI statement – It shows current coverage and premium rates.2. Complete the continuation election – Use the FEGLI Election Form (OPM Form 1400) or the USPS HR portal.3. Submit before the deadline – Typically 60 days after your official retirement date.4. Pay the first premium – Payment is usually deducted from your pension or billed directly.5. Re‑evaluate annually – As you age, premiums rise; you may decide to discontinue coverage after the 5‑year window.
What Happens After Five Years?
FEGLI allows retirees to keep basic coverage for a maximum of five years after retirement. After that period, the basic benefit ends unless you qualify for another group life program (e.g., a private policy or the Postal Service's optional life insurance). Many retirees transition to private term or whole life policies to maintain lifelong protection.
Comparing FEGLI Continuation to Private Life Insurance
Below is a brief comparison to help you decide whether to keep FEGLI or purchase a private policy.
| Metric | FEGLI Continuation | Private Term Life |
|---|---|---|
| Coverage amount | Up to $10,000 (or salary‑based) | Customizable, often $100k‑$500k+ |
| Premium cost | Age‑based, relatively high per $1,000 | Generally lower per $1,000 for healthy adults |
| Eligibility | Automatic for retirees who elect | Medical underwriting required |
| Duration | Maximum 5 years post‑retirement | 10‑30 years or whole life |
Frequently Asked Questions
Do I need to pay for optional FEGLI coverage after retirement?
No. Optional coverage ends on your retirement date unless you had a separate arrangement through another employer.
Can I transfer FEGLI to a spouse?
Spousal coverage ends at retirement; you would need to secure a new policy for your spouse.
What if I miss the 60‑day election window?
Basic coverage will terminate on your last day of service. You can still apply for a private policy, but you cannot retroactively reinstate FEGLI.
Is there a tax advantage?
Employer‑paid FEGLI premiums are tax‑free. Once you pay the premiums yourself as a retiree, they are not tax‑deductible.