Changing Coverage: Open Seasons, Physicals, & FEGLI Qualifying Life Events

Federal Employees elect to enroll in FEGLI Options A, B, & C when first eligible, but adding it later can get tricky- Open Seasons, Physicals, & FEGLI Qualifying Life Events

Upon entering federal employment, eligible individuals are automatically signed up for Basic Federal Employee Group Life Insurance (FEGLI) coverage. They have the option to decline the basic plan or to add any combination of FEGLI Options A, B, and C. Additional enrollment opportunities are available for employees who:

Transition from a non-eligible to an eligible FEGLI position,
Return to federal service after more than 180 days,
Are designated as “emergency essential” by the DoD, or
Support “contingency operations” as civilian employees.

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For federal employees outside these categories, altering FEGLI coverage can be complex. While canceling coverage is straightforward, requiring only the submission of form SF-2817, adding coverage later involves one of three paths: participating in a FEGLI Open Season, passing a physical exam for coverage eligibility, or applying within 60 days following a Qualifying Life Event (QLE). Note that unlike FEHB open seasons, such events for FEGLI are rare, unpredictable, and last typically just one month. The last such event was back in 2016 when the window reopened for FEGLI enrollment during the month of September that year. The previous open season before that? 2004. For the other routes to add FEGLI insurance, both proof of a QLE and the physician’s approval are needed within 60 days of the physical exam or event.

FEGLI Qualifying Life Events

QLEs that permit federal employees to add to their FEGLI coverage outside of Open Season or without a medical exam include:

Marriage
Divorce
Death of a spouse
Birth or adoption of a child

Note that retirement does not constitute a QLE, and it’s often during pre-retirement planning that employees analyze their FEGLI choices. For guidance on FEGLI decisions or general help with their federal retirement plan, feds can consult with Serving Those Who Serve’s specialists in federal benefits.

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 Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **