- Option A adds $10,000 to a fed’s FEGLI Basic coverage
- The cost for FEGLI A is dependent on the covered individual’s age
- The benefit amount is reduced to $2500 in retirement
While there a bunch of aspects regarding the Federal Employee Group Life Insurance (FEGLI) program, that be somewhat complex, the additional coverage known as “option A” is pretty simple to understand, especially when compared to options B and C. FEGLI A adds an amount of $10,000 to a federal employee or retiree’s basic life insurance coverage, and is very similar to basic benefits, too. Both basic and option A insurance includes accidental death and dismemberment (AD&D) plans while the employee is actively in service for the federal government. The AD&D coverage mirrors the dollar amount of the life insurance, which is $10,000 in the case of FEGLI A and goes away immediately upon retirement.
Learn about FEGLI premiums for all types of coverage at our “Life Insurance for Federal Employees” webinar
The cost for option A life insurance through FEGLI depends on the covered individual’s age. It can be as cheap as $0.43/month for a fed in their early thirties or as expensive as $13.00/month for someone in their sixties. If you maintained coverage with option A in the last five years of federal service before retiring, you can keep FEGLI A at no additional cost. Once it is free, however, the coverage does get gradually reduced until reaching $2500 – similar to the 75% of FEGLI basic that can happen in retirement. Unlike FEGLI basic, the decrease in option A coverage is not optional and cannot be avoided if keeping FEGLI A after retiring.
If you’re starting to think about planning your retirement from the federal government, be sure to chat with one our fed-focused financial advisors to ensure you’ve got all of your ducks in a row! Book your appointment here – https://stwserve.com/meet-with-us
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Until Next Time,
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