Your Life Insurance Coverage with FEGLI Option A

Your Life Insurance Coverage with Option A: FEGLI For Federal Employees

While there a lot of things about the Federal Employee Group Life Insurance (FEGLI) program that can quickly become confusing, the additional coverage known as “Option A” is relatively easy to grasp. This appears to be true when compared to the other possible additions- known as “B” & “C,” respectively. The optional insurance adds $10,000 to a federal worker’s Basic plan and shares similarities with it. Both Basic and the Option A insurance include accidental death & dismemberment (AD&D) plans while the employee is currently working in civil service for the government. The AD&D plan mirrors the dollar amount of the life insurance, which is $10,000 in the case of Option A, and goes away immediately upon retirement. The cost for this additional insurance depends on the employee’s age: it can be as cheap as 43 cents per month for someone in their early 30’s, or at its most expensive, $13.00 per month for someone in their 60s. If you maintained the “A” plan in the last five years before retiring, you can keep it for no cost going forward. Once it is free, the coverage does gradually get reduced until reaching $2,500, which is also similar to the 75% reduction of FEGLI-Basic. The decrease in coverage for FEGLI-A is automatic, however, and can’t be avoided if the additional insurance is kept after retiring.

Until Next Time,

**Written by Benjamin Derge, Administrative Associate. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Prior to making a decision regarding the purchase of an investment or insurance product, please consult with your financial advisor about your individual situation. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Serving Those Who Serve is not a registered broker/dealer and is independent of Raymond James Financial Services. Information provided is not approved or endorsed by the Federal Employee Retirement System.

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