The amount and the need for personal life insurance is a very personal decision.  Like many Federal Employees, most of us have purchased life insurance through the Federal Employees Group Life Insurance (FEGLI) program.

The Federal Government established the Federal Employees' Group Life Insurance (FEGLI) Program on August 29, 1954. It is the largest group life insurance program in the world, covering over 4 million Federal employees and retirees, as well as many of their family members.

FEGLI provides group term life insurance. As such, it does not build up any cash value or paid-up value. It consists of Basic life insurance coverage and three options. In most cases, if you are a new Federal employee, you are automatically covered by Basic life insurance and your payroll office deducts premiums from your paycheck unless you waive the coverage. In addition to the Basic, there are three forms of Optional insurance that you can elect. You must have Basic insurance in order to elect any of the options. Unlike Basic, enrollment in Optional insurance is not automatic -- you must take action to elect the options.

The cost of Basic insurance is shared between you and the Government. You pay 2/3 of the total cost and the Government pays 1/3. Your age does not affect the cost of Basic insurance. You pay the full cost of Optional insurance, and the cost depends on your age.

The Office of Federal Employees' Group Life Insurance (OFEGLI), which is a private entity that has a contract with the Federal Government, processes and pays claims under the FEGLI Program.

It is important to us that you have the information you need to make the right decision on your insurance coverage.

NAGE wants their members to be informed in order they can make the best decisions about their future.  The FEGLI preminums are based on the individual's age and the amount of their coverage.  Upon turning 60 years of age there is a substantial increase in the cost, which tends to surprise many Federal Employees.  Please refer to OPM website for information regarding the FEGLI program.   http://www.opm.gov/insure/life/index.asp

This article is not to be construed as an endorsement for or against the FEGLI, but ONLY to inform our members