FEGLI vs. Private Term Life Insurance Calculator (2026): Find Your Crossover Age

FEGLI is cheap when you are young and brutal when you are not. The Federal Employees’ Group Life Insurance program charges Option B premiums on five-year age bands, and those bands reset upward roughly every five years — quietly, automatically, straight out of your paycheck. A federal employee carrying five multiples of salary paid $260 for $500,000 of coverage at age 35 and will pay $5,200 for the same coverage at age 60. Nothing about the coverage changed; only the age band did.

That escalation creates a decision point most federal employees never formally make. At some age, a private level term policy with a locked premium becomes cheaper than continuing to rent coverage through FEGLI Option B. The calculator below projects your FEGLI premiums forward through every age band, prices an equivalent private term policy at your current age and health profile, and identifies the exact age where FEGLI stops being the better deal.

How the FEGLI vs. Private Term Calculator Works

The calculator runs two cost curves side by side for the same face amount of coverage. The first curve is FEGLI: your Basic insurance amount, plus Option A, plus whichever Option B multiples you elected, priced with the official OPM age-band tables for every birthday through your term. The second curve is a private level term policy priced at your current age — a premium that is locked at issue and never changes for the life of the term.

Three outputs matter most. The crossover age is the first birthday where your FEGLI Option A and Option B premiums exceed the annual cost of the level term policy. The cumulative cost shows what each strategy actually drains from your bank account over the full term, not just this year. And the coverage note shows exactly how much face amount a private policy must replace to match your FEGLI supplemental layers, so you compare equal amounts of protection rather than a headline coverage number against a smaller one.

The model deliberately excludes FEGLI Basic from the replacement math. Basic is the one layer of FEGLI where the federal government pays one-third of the premium, the rate never increases with age, and the 75% reduction election turns it into permanent free coverage after 65. Almost every federal employee should keep Basic. The decision that actually moves money is what to do with Option A and Option B. Read more in our complete FEGLI vs. private term guide for federal employees.

FEGLI Premium Rates in 2026: What You Actually Pay

FEGLI has four layers, and each one is priced differently. Basic is a flat rate that ignores your age entirely. Options A, B and C are age-banded, which means the premium per $1,000 of coverage resets upward on a five-year schedule whether or not your health changes.

Option B is where the real money is, because it is the only layer most employees use to build meaningful coverage — one to five multiples of salary. The table below shows the official employee rate per $1,000 of Option B coverage in the age band that applies to you today, followed by what the same coverage costs once you age into each later band.

Those are the OPM rates in effect for 2026 — the same figures printed on your Leave and Earnings Statement. The pattern is the whole story: the cost of the identical coverage multiplies 144 times between your twenties and your eighties, and it does not care whether you were healthy the entire time. See the official OPM FEGLI program page for the current premium tables and election forms.

Why FEGLI Option B Gets Expensive: The Age-Band Trap

Level term insurance and FEGLI Option B both sell death benefit protection, but they price risk in opposite directions. A private term policy locks your premium at the age and health class you had on the day you applied. FEGLI Option B re-prices you every five years using nothing but your birthday.

An employee who enrolls at 32 and takes five multiples of a $90,000 salary carries $450,000 of Option B coverage for about $19.50 a month. Nothing about the policy changes when they turn 50 — the face amount is the same, the beneficiary is the same, the health of the insured may be better than it was at 32 — but the rate has been quietly restated four times, and the invoice is now $97.50 a month. By the time the same employee reaches the 60–64 band, the same $450,000 costs $390 a month, or $4,680 a year, for coverage a healthy 45-year-old could have locked in permanently for roughly $1,160 a year.

This is why the comparison should be run at the age you are now, not the age you were when you enrolled. Older enrollees often discover that FEGLI Basic plus a private term policy costs less than the FEGLI elections they are already carrying — and that the gap widens every five years.

FEGLI vs. Private Term Life Insurance: Side-by-Side

Price is only one axis. FEGLI wins decisively on access and guaranteed issue; private term wins on pricing stability, coverage limits and ownership. The table below compares the two on the factors federal employees should weigh before waiving anything.

A hybrid approach is what most employees actually land on: keep FEGLI Basic for the subsidy and its guaranteed issue status, then layer a private policy over the top for the coverage you genuinely need. If no medical exam is a hard requirement for you, our guide to no medical exam life insurance covers simplified-issue alternatives, and a convertible term policy keeps the option to exchange coverage later without new underwriting.

A Worked Example: Age 45, $90,000 Salary, Five Option B Multiples

Here is the comparison the calculator produces for a healthy 45-year-old GS-12 earning $90,000 a year with five Option B multiples and Option A elected. FEGLI face amount is $552,000 — $92,000 of Basic plus $10,000 of Option A plus $450,000 of Option B. A private policy needs to replace $460,000 to match the supplemental layers.

The crossover lands at age 50 in this example. Notice how small the gap is at that first band — $36.84 a year — and how violently it widens afterward. That is the nature of a five-year band structure: the decision looks trivial the year it arrives and looks enormous five years later. Including FEGLI Basic in both columns, the 20-year totals are $52,167 staying inside FEGLI versus $30,838 for Basic plus a private level term policy.

• Key takeaway 1: FEGLI Option B is usually the cheapest coverage on earth before age 45 and the most expensive after age 60 — the same policy, priced by your birthday.
• Key takeaway 2: Keep FEGLI Basic in almost every case. Its premium never rises, the government pays one-third, and the 75% reduction election leaves permanent free coverage after 65.
• Key takeaway 3: Private premiums are set by the age and health you have when you apply, so a replacement policy gets more expensive — or unavailable — every year you delay.
• Key takeaway 4: Never cancel or waive FEGLI coverage before a replacement policy is approved and its first premium is paid. FEGLI enrollment windows outside a qualifying life event are rare.
• Key takeaway 5: If you smoke or have a significant health history, FEGLI's guaranteed issue status may be worth more than any price gap a calculator shows.

When Staying in FEGLI Is the Right Call

The crossover math is not a verdict on its own. FEGLI carries two advantages private insurers cannot match, and for some employees they outweigh the premium difference completely.

• Guaranteed issue. FEGLI accepts you at the coverage level you elected during the initial 60-day window, a qualifying life event, or an open season — no exam, no health questions, no decline letter. Employees managing diabetes, a cardiac history or a recent cancer diagnosis are often priced into a substandard class privately, or declined outright, and FEGLI may be the only meaningful coverage available.
• The government subsidy on Basic. One-third of the Basic premium is paid by your agency, the rate is age-blind, and the post-retirement 75% reduction election turns that coverage into a permanent benefit at zero ongoing cost. No private product replicates it.
• Tobacco pricing. Private carriers routinely charge smokers 200% to 300% of standard rates. FEGLI charges tobacco users the same age-band rate as everyone else, which can flip the comparison entirely.
• Salary growth. Basic and Option B are tied to your basic pay, so coverage grows automatically as you climb the pay scale with no underwriting and no new application.

If any of those apply to you, treat the calculator as a way to size the trade-off rather than a command to switch. For a closer look at how underwriting classes are priced, see term life vs. whole life insurance and the underlying rate structures behind each product type.

The FEGLI Decision Window: Ages 40 to 52

Federal benefits specialists generally point to the 40-to-52 window as the period when private level term outcompetes FEGLI Option B — and, just as importantly, when applicants are still young and healthy enough to qualify for the best rate classes. Before 40, FEGLI Option B is simply too cheap to beat. After about 55, the premium advantage of private coverage is large but so is the underwriting risk: a new medication, a changed weight or a single abnormal lab result can move an applicant two rate classes or end the application.

Two practical rules follow from this. First, request quotes before you need them, so you know your real rate class rather than an illustration's assumption. Second, if the answer is "not yet," put the crossover age in your calendar and re-run this calculator annually — the numbers move every five years and your insurability only moves one direction.

1. Enter your current age, salary and actual Option B multiples so the projection reflects your real elections, not the maximum.
2. Note the crossover age and the 20-year difference between the two strategies.
3. Request private term quotes for the exact face amount your FEGLI supplemental layers provide, in your real health class.
4. If you smoke, carry an impaired health history, or would need coverage within weeks, price the underwriting risk against the premium gap before acting.
5. If you switch, keep FEGLI Basic, keep your Option C family coverage if you rely on it, and only then waive the layers you have replaced.

FEGLI in Retirement: What Happens at 65

FEGLI does not stop at 65 — it reduces according to the irrevocable election you file at retirement, and getting that election wrong is one of the most expensive errors a federal retiree can make. Most retirees choose the 75% reduction on Basic: premiums stop, coverage drops to 25% of the pre-retirement amount, and a $100,000 Basic policy becomes $25,000 of permanent coverage at no ongoing cost. The 50% and no-reduction elections keep more face amount at steadily rising premiums.

Option B follows a parallel logic. With full reduction, the coverage phases out over 50 months and then becomes free at zero — the premium curve in the table above simply stops mattering. With no reduction, you keep the entire face amount but continue paying the published age-band rates for life, which is exactly where retirees in their 70s and 80s routinely pay more for FEGLI than a level term policy would have cost them at 45. If you expect to need coverage well into retirement, the strongest structure is usually a level term policy purchased during your working years plus FEGLI Basic reduced to its free permanent floor.

Regulatory details on policyholder rights, replacement rules and complaint procedures are published by the National Association of Insurance Commissioners, and OPM publishes the official FEGLI calculator for verifying your current elections before you make any change.

Watch: FEGLI Options Explained for Federal Employees

Frequently Asked Questions

What is the crossover age for FEGLI versus private term life insurance?

It is the first birthday where your FEGLI Option A and Option B premiums for the year exceed the annual premium of a level term policy with the same face amount. For a healthy 45-year-old with five Option B multiples on a $90,000 salary, the crossover typically arrives around age 50 on a 20-year term. Every year after the crossover, you pay more for identical coverage.

How much does FEGLI Option B cost in 2026?

The employee rate is $0.02 per $1,000 biweekly under age 40, $0.06 at 45–49, $0.18 at 55–59, $0.40 at 60–64, $0.48 at 65–69, and $2.88 at age 80 and over. Because the rate resets every five years, $500,000 of Option B coverage costs $260 a year at age 35 and $37,440 a year at 80.

Should I drop FEGLI Option B and buy private term insurance?

Healthy employees in their 40s and early 50s usually save money by keeping Basic and replacing Options A and B with level term. Employees whose health or tobacco use would push them into a substandard class — or who cannot pass underwriting at all — should model the risk carefully before waiving anything, because FEGLI is guaranteed issue.

Is FEGLI Basic worth keeping?

For most federal employees, yes. Basic costs $0.16 biweekly per $1,000, the government pays one-third of the premium, the rate never rises with age, and the 75% reduction election leaves 25% of the coverage permanently in force at no cost after 65.

What happens to FEGLI at retirement age 65?

Coverage reduces according to the election you file at retirement. The 75% reduction election ends premiums on Basic and Option A while preserving 25% of the original amount. Option B with full reduction phases out over 50 months and becomes free at zero; with no reduction you keep the full face amount but keep paying the age-band rates.

Can I carry both FEGLI and a private policy?

Yes. FEGLI and private coverage are independent and there is no cap on your combined death benefit. The most common structure keeps FEGLI Basic for its subsidy and guaranteed issue status while a private level term policy covers the rest of the need. Federal law enforcement and postal employees can benchmark their numbers against our coverage guide for federal agents and the FEGLI options overview for postal workers.

Related Resources

• OPM — Federal Employees' Group Life Insurance program and official premium tables
• OPM — FEGLI calculator for verifying your current elections
• NAIC — consumer information on policy replacement and policyholder rights
• Life Insurance for Federal Employees 2026: FEGLI vs. Private Term Coverage
• Life Insurance for Postal Workers 2026: FEGLI Options, Costs & Protection
• Life Insurance for Border Patrol Agents 2026: Coverage Options & Rates
• Term Life vs. Whole Life Insurance 2026: Which Should You Buy?
• No Medical Exam Life Insurance in 2026: Instant Coverage Without the Exam
• Compare Free Life Insurance Quotes

FEGLI is a strong foundation and a poor long-term home for large coverage amounts. Run the crossover, confirm your real elections with OPM, and price a level term policy for the gap — then decide with numbers instead of inertia. Get your free life insurance quotes and see what your own health class actually costs today.

Federal employees with student debt can pair FEGLI with a private term policy using our student loan life insurance calculator, which excludes the federal balances that are discharged at death.