FEGLI Insurance Review & Complaints (2024)

FEGLI life insurance is one of the many perks federal employees can receive through the government. Under FEGLI, you can get term life insurance at a rate that competes with some of the best insurance companies.

So how much do FEGLI rates cost? Continue reading our guide to learn more about FEGLI, how much it costs, and how it works.

FEGLI life insurance may be restricted to federal employees, but you can enter your ZIP code to find life insurance rates in your local area.

What is FEGLI?

FEGLI is the federal government’s version of a life insurance company. However, FEGLI only provides coverage for federal employees and their spouses.

Non-federal employees can’t get quotes from the FEGLI life insurance company.

Eligible employees of the federal government can access affordable FEGLI life insurance and compare it to other companies.

If you’re not happy with your current FEGLI policy, you can transfer your policy to another company. However, you’ll need to get approval from the life insurance company where you want a policy.

FEGLI vs. WAEPA

The Worldwide Assurance for Employees of Public Agencies (WAEPA) is an excellent alternative if FEGLI Option B is too expensive. WAEPA life insurance rates are usually ten percent less than FEGLI until the policyholder turns 60.

Under WAEPA, 60-year-old policyholders will lose a portion of their death benefits. By contrast, FEGLI’s policy rates increase, but your death benefit doesn’t decrease. (For more information, read our “WAEPA Insurance Review & Complaints: Life Insurance“).

How much is FEGLI life insurance?

According to the U.S. Office of Personnel Management, the basic term life policy at FEGLI will cost an employee 15 cents (for each $1,000 of coverage) every two weeks. The federal government pays one-third of the cost, and the federal employee pays two-thirds of the basic insurance.

U.S. Postal Service employees get FEGLI basic life insurance for free. Federal employees who want to expand into optional coverage or additional insurance (also called optional insurance) have to pay their policies in full.

How does FEGLI work?

The moment you’re hired as a federal employee, your FEGLI benefits start when you’ve been locked into the payment system.  Your perks begin right away, and FEGLI is deducted from your paycheck. The amount taken from your check will depend on your estimated salary, which is 15 cents for every $1,000 of coverage.

If your salary is estimated at $75,000, FEGLI will deduct $11.25 per month for basic coverage.

How do you compare FEGLI rates?

The best method to compare FEGLI insurance quotes is by using the FEGLI Calculator. Your FEGLI premiums depend on your age, annual salary, and the coverage option you need, including family coverage.

Option A is a standard coverage, and your age and annual income determine it.

However, Option B gives you more perks after retirement, but it costs more. The older you get, the more you’ll pay for Option B. If you want to cover a spouse and child, you’ll need to enroll in Option C.

Let’s compare Option A, Option B, and Option C for a federal employee who’s between 45 and 49.

Comparing FEGLI Life Insurance Rates for Policyholders Aged 45 through 49

Our research is based on federal employees who earn $50,000 per year and are not U.S. Postal Service employees. Like any major life insurance company, your FEGLI life insurance quotes increase with more coverage options. Under Option C of FEGLI, an employee’s eligible family members are provided automatic coverage.

When compared to other companies, FEGLI is roughly the same. Banner Life insurance program is about $37 per month for policyholders between 45 and 49. That’s close to FEGLI’s policy cost.

FEGLI Life Insurance Conversion

You don’t have to stick with FEGLI. You can convert your FEGLI policy to another company. Why? FEGLI insurance rates increase as you get older. It may be in your best interest to move your FEGLI to another company.

This will open up opportunities to other policy types such as permanent life insurance or term life insurance with a rider.

FEGLI conversions only work when you end your FEGLI policy. Before you leave your federal government job, start making plans to move your FEGLI policy. Get a medical exam and start shopping around for a reliable life insurance policy.

If you have a term life policy, you can forget about a cash value. Term life insurance policies are designed to cover you as long as you’re making payments. However, FEGLI options and other optional benefits can help you more post-retirement.

Your annual income won’t be a factor once you move to a private company, but your age, health, and lifestyle will be a factor. Younger policyholders pay the least, while smokers pay a lot more.

Can I continue my FEGLI benefit after I retire?

The short answer is yes. FEGLI policyholders need to complete an Office of Personnel Management (OPM) Continuation of Life Insurance Coverage form and turn it into the OPM representatives right away.

You can call the U.S. Office of Personnel Management at 1-888-767-6738. Or you can mail in your form to the address: U.S. Office of Personnel Management at 1900 E. Street, NW, Washington, D.C. 20415-1000.

FEGLI Claims Process

Ease of Filing a Claim (Online, Over the Phone, Mobile Apps)

FEGLI offers a straightforward and convenient claims process for federal employees and their beneficiaries. The process can be initiated through multiple channels, including online submission, over the phone, or mobile apps.

This flexibility allows policyholders to choose the method that suits them best, making it convenient to report claims during what can be a challenging time.

Average Claim Processing Time

One of the key factors that policyholders consider when evaluating an insurance provider is the speed at which claims are processed. FEGLI aims to provide efficient service in this regard. While the exact processing time may vary depending on the complexity of the claim and the documentation provided, policyholders generally experience a reasonably quick turnaround time for their claims.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback is a crucial aspect of evaluating any insurance provider. FEGLI’s reputation in handling claim resolutions and payouts is generally positive. Many policyholders have expressed satisfaction with the ease of the claims process and the fair and timely payouts provided by the program.

This positive feedback speaks to the program’s commitment to serving federal employees and their families effectively.

FEGLI Digital and Technological Features

Mobile App Features and Functionality

FEGLI offers a user-friendly mobile app that allows policyholders to manage their insurance policies on the go. The app provides features such as policy information access, premium payment options, and the ability to submit claims directly from a mobile device.

It enhances the overall customer experience by providing easy access to essential insurance-related tasks.

Online Account Management Capabilities

FEGLI’s online account management platform empowers policyholders with the ability to access and manage their policies at their convenience. Through a secure online portal, policyholders can view policy details, update personal information, make premium payments, and track the status of their claims.

This digital feature ensures that policyholders have control over their insurance accounts 24/7.

Digital Tools and Resources

FEGLI provides a wealth of digital tools and resources to assist policyholders in understanding their coverage and making informed decisions. These resources include online calculators to estimate insurance needs, educational materials about policy options, and FAQs to address common inquiries.

The availability of these digital tools ensures that policyholders have access to comprehensive information to make the most of their FEGLI insurance coverage.

FEGLI Life Insurance: The Bottom Line

Ultimately, FEGLI is designed as a benefit for federal employees who need life insurance. The federal government pays for life insurance through your paycheck, but you’ll pay a larger portion. Also, you won’t miss too much from your monthly income.

However, FEGLI is a term life policy. As you get older, your premium costs will increase to the same prices as those offered by private companies. Therefore, it may be better to find a private company.

If you want to switch from FEGLI life insurance and go with a private company, enter your ZIP code in the free online quote tool below to compare multiple companies in your area.