FEGLI Federal Employee Life Insurance Guide 2026: Coverage, Costs & Alternatives

If you’re a federal employee or postal worker, you’ve likely heard of FEGLI — the Federal Employees’ Group Life Insurance program. It’s the default life insurance coverage that comes with your federal job, administered by MetLife on behalf of the U.S. Office of Personnel Management (OPM). But is FEGLI really the best option for protecting your family? In this comprehensive 2026 guide, we break down every FEGLI coverage option, reveal the true cost at every age band, compare FEGLI against private life insurance alternatives, and answer the most common questions federal employees have about their life insurance benefits. See also: term vs whole life insurance comparison See also: life insurance at age 65 See also: life insurance at age 55

Whether you’re a new GS-7 just starting your federal career, a mid-career GS-13 evaluating your benefits package, or a soon-to-retire CSRS/FERS annuitant wondering what happens to your coverage after retirement — this guide has you covered.

What Is FEGLI? Understanding the Federal Employees’ Group Life Insurance Program

FEGLI stands for the Federal Employees’ Group Life Insurance program, established in 1954. It is the largest group life insurance program in the world, covering over 4 million federal employees, postal workers, and their families. The program is administered by Metropolitan Life Insurance Company (MetLife) under a contract with the Office of Personnel Management (OPM).

FEGLI is not a single policy — it’s a program with multiple coverage options that federal employees can mix and match. When you’re first hired as a federal employee, you’re automatically enrolled in Basic FEGLI coverage unless you explicitly waive it. The government even pays one-third of your Basic premium, making it an attractive default option. But as we’ll explore in detail, the optional coverages (Options A, B, and C) are fully employee-paid — and their costs can skyrocket as you age.

For the most authoritative source on FEGLI, visit the OPM Life Insurance page. For general consumer guidance on life insurance, the NAIC Consumer Resources page is an excellent independent reference.

FEGLI Coverage Options: A Complete Breakdown

FEGLI offers four distinct types of coverage. Understanding each one is critical to making informed decisions about your benefits. Here’s a detailed breakdown:

Basic Insurance (Automatic Enrollment)

Basic FEGLI is the foundation of the program. Every eligible federal employee is automatically enrolled in Basic coverage when hired, unless they specifically opt out. Here’s what Basic provides:

• Coverage amount: Your annual basic pay rounded up to the next $1,000, plus an additional $2,000. For example, if your salary is $72,500, your Basic coverage would be $75,000 (rounded up from $72,500 to $73,000, plus $2,000).
• Cost sharing: You pay two-thirds of the Basic premium; the government pays one-third. This is the only FEGLI coverage where the government contributes.
• Accidental Death & Dismemberment (AD&D): Basic includes AD&D coverage at no extra cost, providing additional benefits for accidental death or loss of limbs/eyesight.
• Living Benefits: Basic coverage includes a living benefits provision that allows terminally ill employees to access a portion of their death benefit while still alive.

Option A — Standard Insurance ($10,000)

Option A provides a flat $10,000 of additional coverage. It’s a simple, fixed-amount policy that does not change with your salary. This option is fully employee-paid — the government contributes nothing toward Option A premiums.

Option B — Additional Insurance (1–5 Times Salary)

Option B allows you to purchase additional coverage in multiples of your annual basic pay. You can elect 1, 2, 3, 4, or 5 times your salary. For a federal employee earning $80,000, electing 3 multiples of Option B would provide an additional $240,000 in coverage. Option B premiums are fully employee-paid and increase significantly with age.

Option C — Family Insurance (Spouse & Children)

Option C provides coverage for your spouse and eligible dependent children. You can elect 1, 2, 3, 4, or 5 multiples, with each multiple providing $5,000 for your spouse and $2,500 for each eligible child. For example, 5 multiples of Option C would provide $25,000 for your spouse and $12,500 per child. Like Options A and B, Option C is fully employee-paid.

FEGLI Coverage Options at a Glance

Coverage Type	Coverage Amount	Who Pays?	Enrollment	Key Feature
Basic	Salary rounded up to next $1,000 + $2,000	Employee 2/3, Gov’t 1/3	Automatic (can waive)	Includes free AD&D and Living Benefits
Option A	$10,000 flat amount	100% Employee	Elective	Fixed coverage, does not change with salary
Option B	1–5 multiples of annual salary	100% Employee	Elective	Most flexible; premiums rise sharply with age
Option C	1–5 multiples of $5,000 (spouse) / $2,500 (child)	100% Employee	Elective	Covers spouse and dependent children

FEGLI Premiums: How Age Bands Affect Your Costs

One of the most important — and often overlooked — aspects of FEGLI is how premiums are structured. FEGLI uses a system of 5-year age bands, meaning your premium rate increases every five years as you move into the next age bracket. This is fundamentally different from private term life insurance, where you typically lock in a fixed rate for the entire policy term (10, 15, 20, or 30 years). Learn more in our term life insurance basics for beginners.

The age bands for FEGLI are:

• Under 35
• 35–39
• 40–44
• 45–49
• 50–54
• 55–59
• 60–64
• 65–69
• 70–74
• 75–79
• 80 and over

Here’s a representative premium table showing how Option B costs escalate across age bands. Rates shown are biweekly premiums per $1,000 of coverage for Option B (2026 rates):

Age Band	Option B Biweekly Rate (per $1,000)	Annual Cost for 3x Salary ($80,000 salary = $240,000 coverage)	Annual Cost for 5x Salary ($80,000 salary = $400,000 coverage)
Under 35	$0.043	$268.32	$447.20
35–39	$0.065	$405.60	$676.00
40–44	$0.087	$542.88	$904.80
45–49	$0.150	$936.00	$1,560.00
50–54	$0.280	$1,747.20	$2,912.00
55–59	$0.540	$3,369.60	$5,616.00
60–64	$0.960	$5,990.40	$9,984.00
65–69	$1.500	$9,360.00	$15,600.00
70–74	$2.500	$15,600.00	$26,000.00
75–79	$3.900	$24,336.00	$40,560.00
80+	$6.200	$38,688.00	$64,480.00

Note: Rates shown are representative 2026 biweekly premiums per $1,000 of Option B coverage. Actual rates are published by OPM and may vary slightly. Basic and Option A/C use different rate schedules. Always verify current rates at OPM.gov.

As you can see, the cost escalation is dramatic. A 35-year-old federal employee with 3x Option B coverage ($240,000) pays about $406 per year. By age 55, that same coverage costs $3,370 per year — an 8x increase. By age 65, it jumps to $9,360 annually. This is the single biggest reason why many financial advisors recommend that federal employees explore private life insurance alternatives well before they hit their 50s.

FEGLI vs. Private Life Insurance: A Cost Comparison

One of the most valuable exercises for any federal employee is comparing FEGLI costs against what you could get on the private market. Below is a side-by-side comparison for a 45-year-old federal employee in good health earning $80,000, comparing FEGLI Option B (3x salary = $240,000) against a 20-year level term life insurance policy from a highly-rated private carrier:

Comparison Factor	FEGLI Option B (3x Salary)	Private 20-Year Term ($250,000)	Winner
Coverage Amount	$240,000	$250,000	Private (slightly higher)
Annual Premium (Age 45)	$936	~$350–$500	Private (50–63% cheaper)
Annual Premium (Age 55)	$3,370	~$350–$500 (locked)	Private (85–90% cheaper)
Annual Premium (Age 60)	$5,990	~$350–$500 (locked)	Private (92–94% cheaper)
Rate Structure	Increases every 5 years	Level (fixed) for 20 years	Private (predictable)
Medical Underwriting	None required (guaranteed issue)	Typically required	FEGLI (easier to get)
Portability	Can convert if leaving federal service	Fully portable — yours to keep	Private (truly portable)
10-Year Total Cost (Age 45–54)	~$13,416	~$3,500–$5,000	Private (saves $8,400–$9,900)
20-Year Total Cost (Age 45–64)	~$60,000+	~$7,000–$10,000	Private (saves $50,000+)

The numbers tell a compelling story. While FEGLI’s guaranteed-issue nature (no medical exam required) is a genuine advantage — especially for federal employees with health conditions — the cost difference over time is staggering. A healthy 45-year-old could save over $50,000 across 20 years by choosing a private term life policy instead of relying solely on FEGLI Option B.

For a deeper dive into how term life compares to permanent coverage, check out our Term vs. Whole Life Insurance Calculator. And if you’re concerned about medical exams, our guide on No-Medical-Exam Life Insurance explores alternatives that still offer competitive rates.

FEGLI After Retirement: What Happens to Your Coverage?

One of the most confusing aspects of FEGLI is what happens when you retire. The rules differ significantly depending on which coverage you hold and how long you’ve had it. Here’s what you need to know:

Basic Coverage After Retirement

To continue Basic FEGLI into retirement, you must have been enrolled in Basic for the 5 years immediately preceding your retirement (or from your first opportunity to enroll). If you meet this requirement, you can choose from three options at retirement:

• 75% Reduction: Your Basic coverage continues at no cost to you after age 65, but it reduces by 2% per month starting at age 65 until it reaches 25% of the original face value. This is the default option if you make no election.
• 50% Reduction: Your Basic coverage reduces by 1% per month starting at age 65 until it reaches 50% of the original face value. You pay a premium for this option after 65.
• No Reduction: Your Basic coverage remains at 100% of the original face value. You pay premiums for this option after age 65, and those premiums increase with age.

Critical point: If you choose the 75% Reduction (the default), your $80,000 Basic policy shrinks to just $20,000 by the time you’re 65. That’s a dramatic reduction that many retirees don’t fully anticipate.

Optional Coverages After Retirement

For Options A, B, and C, you can continue them into retirement if you’ve been enrolled for the 5 years immediately preceding retirement. However, you’ll continue paying the full premium — and those premiums keep climbing with each age band. Many retirees find that continuing Option B or C into their 70s and 80s becomes prohibitively expensive.

5 Key Strategies for Federal Employees to Optimize Life Insurance

Based on our analysis of FEGLI’s cost structure and how it compares to the private market, here are five actionable strategies for federal employees at different career stages:

1. Keep Basic FEGLI — the government subsidy makes it worthwhile. Since the government pays one-third of your Basic premium and it includes free AD&D coverage, Basic FEGLI is almost always worth keeping. The cost is modest, and the coverage provides a solid foundation.
2. Lock in private term life insurance before age 45. If you’re healthy, apply for a 20- or 30-year level term policy from a top-rated carrier while you’re still young. Rates are lowest in your 30s and early 40s. Visit our Best Life Insurance Companies 2026 guide to compare top-rated carriers.
3. Replace FEGLI Option B with private term insurance. For most healthy federal employees, private term life is dramatically cheaper than Option B over the long run. A $500,000 20-year term policy for a healthy 40-year-old can cost as little as $25–$35 per month — far less than what FEGLI Option B will cost as you age.
4. Consider a hybrid approach for Option C (Family). Option C provides modest coverage for your spouse and children. Compare the cost against a separate private term policy on your spouse. Often, a private policy provides more coverage for less money.
5. Plan your retirement coverage transition early. Don’t wait until you’re 62 to think about what happens to your FEGLI after retirement. By your early 50s, you should have a clear plan: Will you keep the No Reduction option? Will you supplement with private coverage? Will you self-insure? Make these decisions before the 75% reduction kicks in.

Who Should Keep FEGLI — and Who Should Look Elsewhere

FEGLI isn’t inherently “good” or “bad” — it’s a tool that works well for some federal employees and poorly for others. Here’s a quick guide:

FEGLI May Be Your Best Option If:

• You have significant health issues that would make private life insurance expensive or unavailable
• You’re within 5 years of retirement and need to maintain coverage through the retirement eligibility period
• You only need Basic coverage (the government subsidy makes it cost-effective)
• You’re a young federal employee under 35 and haven’t yet explored private options

You Should Strongly Consider Private Insurance If:

• You’re healthy and between ages 30–50
• You need $250,000 or more in coverage beyond Basic
• You want predictable, level premiums that won’t increase with age
• You plan to leave federal service before retirement
• You want coverage that doesn’t shrink by 75% after age 65

Frequently Asked Questions About FEGLI

Watch the video above for a visual overview of FEGLI coverage options and retirement considerations, then dive into our detailed FAQ below.

1. Is FEGLI automatic for all federal employees?

Yes. When you’re first hired as an eligible federal employee, you are automatically enrolled in Basic FEGLI coverage. You have 60 days from your appointment date to waive Basic coverage if you don’t want it. Options A, B, and C are not automatic — you must actively elect them. If you miss the initial enrollment window, you can still enroll during a FEGLI Open Season (rare) or with a Qualifying Life Event (QLE) such as marriage, divorce, or the birth of a child.

2. How much does FEGLI Basic insurance cost?

Basic FEGLI premiums are calculated at a rate of $0.15 biweekly per $1,000 of coverage (the employee’s share is two-thirds of this, or $0.10 per $1,000). For an employee with a $80,000 salary, Basic coverage would be $82,000 (rounded up to $80,000 + $2,000). The employee’s biweekly cost would be approximately $8.20, or about $213 per year. The government contributes the remaining one-third. This makes Basic FEGLI one of the most affordable group life insurance options available.

3. Can I keep FEGLI after I retire?

Yes, but with important conditions. You must have been enrolled in the coverage you want to continue for the 5 years immediately preceding your retirement (or from your first opportunity to enroll). For Basic coverage, you’ll choose between 75% Reduction (free after 65), 50% Reduction, or No Reduction. For Options A, B, and C, you continue paying the full premium, which continues to increase with each age band. Many retirees find that continuing optional coverages becomes prohibitively expensive in their 70s and beyond.

4. Does FEGLI require a medical exam?

No. One of FEGLI’s biggest advantages is that it is guaranteed issue — there is no medical exam or health questionnaire required for any coverage if you enroll when first eligible. This makes FEGLI especially valuable for federal employees with pre-existing health conditions who might be declined or charged high rates by private insurers. However, if you waive coverage and later want to enroll (outside of an Open Season or QLE), you may need to provide medical evidence of insurability.

5. Why do FEGLI premiums increase so much after age 50?

FEGLI uses 5-year age bands for premium calculations, meaning your rate jumps every five years as you move into a higher-risk age bracket. This is fundamentally different from private level term insurance, where you lock in a fixed rate for the entire term. The dramatic increases after 50 reflect the actuarial reality that mortality risk rises with age — but because FEGLI is a group program without individual underwriting, the rate increases are applied uniformly to everyone in each age band, regardless of individual health status.

6. What happens to my FEGLI if I leave federal service?

If you leave federal service before retirement, your FEGLI coverage ends, but you have options. You can convert your FEGLI coverage to an individual policy with MetLife within 31 days of separation — no medical exam required. However, the converted policy will be a whole life (permanent) policy, not term, and the premiums will be based on your age at conversion. These converted policies are typically expensive. Alternatively, you can apply for private term life insurance before leaving federal service, which is often a more cost-effective strategy.

7. Is FEGLI Option C worth it for family coverage?

Option C provides coverage for your spouse ($5,000 per multiple) and dependent children ($2,500 per multiple). For young families, it can be a reasonable option — especially since it’s guaranteed issue. However, the coverage amounts are relatively modest. Five multiples of Option C provide only $25,000 for a spouse and $12,500 per child. Many federal employees find that a private term life policy on the spouse provides significantly more coverage (e.g., $250,000–$500,000) for a comparable or lower cost, especially if the spouse is healthy. For children, a child rider on a private policy often provides $10,000–$25,000 per child for just a few dollars per month.

How FEGLI Compares to What Competitors Don’t Tell You

When researching FEGLI online, you’ll encounter several types of resources. The OPM.gov website ranks #1 in search results — and for good reason. It’s the official government source with authoritative, accurate information. However, OPM’s pages are designed to inform, not to compare or advise. They present the facts but don’t help you evaluate whether FEGLI is the right financial decision for your family.

FedWeek and NARFE (National Active and Retired Federal Employees Association) both publish educational content about FEGLI, often with a retirement focus. These are valuable resources, but they typically lack the side-by-side cost comparisons, private insurance alternatives analysis, and interactive tools that help federal employees make truly informed decisions.

What sets this guide apart — and what most FEGLI resources miss — is the hard numbers: rate comparison tables showing exactly how much you’ll pay at each age, private vs. FEGLI cost breakdowns, and clear guidance on when to switch. We’ve also included a video walkthrough and structured FAQ schema to make this information more accessible than any other FEGLI resource online.

Final Verdict: Is FEGLI Right for You in 2026?

FEGLI serves an important purpose: it ensures that every federal employee has access to at least some life insurance coverage, regardless of health status. The Basic coverage, with its government subsidy and included AD&D benefits, is genuinely a good deal that most federal employees should keep.

But when it comes to supplemental coverage — Options B and C — the math often favors the private market, especially for healthy federal employees under 50. The age-banded premium structure means that what looks affordable at 35 becomes a significant financial burden by 55, and potentially unaffordable by 65.

Our recommendation: Keep Basic FEGLI. Shop private term life insurance for coverage beyond Basic. Make your decision before age 50. By locking in a level term policy while you’re young and healthy, you can secure hundreds of thousands in coverage at a fixed rate for 20 or 30 years — protecting your family without the escalating costs that come with FEGLI’s age bands.

Ready to explore your options? Start with our comprehensive guide to the Best Life Insurance Companies of 2026, use our Term vs. Whole Life Calculator to model your costs, and check out No-Medical-Exam Life Insurance options if you’re concerned about underwriting.

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial, legal, or insurance advice. FEGLI premium rates are subject to change. Always verify current rates and coverage details at OPM.gov and consult with a qualified financial professional before making insurance decisions.