FEGLI Rates Calculator
Calculate your Federal Employees’ Group Life Insurance (FEGLI) premiums based on your salary, age, and coverage options.
Your FEGLI Premiums
Comprehensive Guide to FEGLI Rates Calculator (2024)
The Federal Employees’ Group Life Insurance (FEGLI) program 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. Understanding how FEGLI rates are calculated is essential for making informed decisions about your coverage.
What is FEGLI?
FEGLI is a group term life insurance program for Federal employees. It was established by Congress in 1954 to provide life insurance protection for civilian government employees. The program is administered by the U.S. Office of Personnel Management (OPM) and underwritten by Metropolitan Life Insurance Company.
Key features of FEGLI include:
- No medical exam required for basic coverage
- Premiums are deducted from your paycheck on a pre-tax basis
- Coverage continues into retirement if you meet certain requirements
- Three optional coverages (A, B, and C) in addition to basic coverage
FEGLI Coverage Options
FEGLI offers four types of coverage:
- Basic Insurance: Equal to your annual basic pay (rounded up to the next $1,000) plus $2,000. The cost is shared between you and the government.
- Option A (Standard): An additional $10,000 of coverage. You pay the full premium.
- Option B (Additional): Additional coverage in multiples of your salary (1-5 times). You pay the full premium.
- Option C (Family): Coverage for your spouse and eligible dependent children. You pay the full premium.
How FEGLI Rates Are Calculated
FEGLI premiums are calculated based on several factors:
- Age: Premiums increase as you get older, especially after age 35
- Salary: Higher salaries mean higher basic insurance amounts and higher Option B premiums
- Coverage options selected: Each additional option increases your premium
- Tobacco use: Not a factor in FEGLI rates (unlike many private insurance policies)
- After age 50: Premiums increase significantly, especially for Option B
- If you have other coverage: Such as private life insurance or coverage through a spouse’s employer
- If you’re financially independent: With sufficient assets to cover final expenses
- If you’re in poor health: And might not qualify for private insurance
- You must be eligible to receive an immediate annuity (pension)
- You must have been enrolled in FEGLI for the 5 years of service immediately before retirement, or from your first opportunity to enroll
- You must not have converted your coverage to an individual policy
- 75% Reduction: Your coverage reduces by 2% each month until it reaches 25% of its original value
- 50% Reduction: Your coverage reduces by 1% each month until it reaches 50% of its original value
- No Reduction: Your coverage stays the same, but premiums continue to increase with age
- Benefits paid to beneficiaries are generally income-tax free
- If you have more than $50,000 of group-term life insurance coverage, the IRS considers the cost of coverage over $50,000 as taxable income (this is called “imputed income”)
- The imputed income is calculated using IRS tables and is added to your W-2 earnings
- Private Term Life Insurance: Often less expensive than FEGLI, especially for younger, healthy individuals
- Permanent Life Insurance: Provides lifelong coverage and may build cash value
- Employer-Sponsored Plans: If your spouse has access to group life insurance
- Self-Insurance: Building sufficient assets to cover final expenses
- Not reviewing coverage regularly: Your insurance needs change over time with marriage, children, and career progression
- Keeping unnecessary coverage: Especially Option B after age 50 when premiums skyrocket
- Not understanding the reduction options: Many retirees don’t realize they can reduce coverage to control costs
- Assuming FEGLI is enough: The basic coverage may not be sufficient for all financial obligations
- Not naming contingent beneficiaries: This can cause delays in benefit payments
- Enter your annual salary (before taxes)
- Enter your current age
- Select your coverage options (Basic is automatic unless you waive it)
- For Option C, enter the number of eligible children (under age 22, or any age if incapable of self-support)
- Click “Calculate FEGLI Rates” to see your estimated premiums
- Roundings in the calculation
- Changes in FEGLI rates (which are set by OPM)
- Special provisions for certain employee groups
| Age Group | Your Share (per $1,000) | Government Share (per $1,000) | Total Cost (per $1,000) |
|---|---|---|---|
| Under 35 | $0.1500 | $0.3000 | $0.4500 |
| 35-39 | $0.1750 | $0.3500 | $0.5250 |
| 40-44 | $0.2250 | $0.4500 | $0.6750 |
| 45-49 | $0.3500 | $0.7000 | $1.0500 |
| 50-54 | $0.6250 | $1.2500 | $1.8750 |
FEGLI vs. Private Life Insurance: A Comparison
When deciding whether to keep FEGLI coverage or supplement it with private insurance, consider these factors:
| Feature | FEGLI | Private Life Insurance |
|---|---|---|
| Medical Exam Required | No (for basic coverage) | Typically yes |
| Portability | Can convert to individual policy when leaving federal service | Fully portable |
| Cost Stability | Premiums increase with age | Level premiums available |
| Coverage Amount | Limited to salary multiples | Can purchase higher amounts |
| Underwriting | Guaranteed issue | Medical underwriting typically required |
| Cash Value | No | Yes (for whole/universal life) |
When to Consider Reducing FEGLI Coverage
While FEGLI provides valuable protection, there are situations where you might consider reducing your coverage:
According to the U.S. Office of Personnel Management, about 60% of federal employees keep their FEGLI coverage into retirement, but many choose to reduce their optional coverages to manage costs.
FEGLI in Retirement
You can continue your FEGLI coverage into retirement if you meet these requirements:
In retirement, you’ll pay the full premium (the government contribution stops), and you have the option to reduce your coverage to avoid premium increases. The most common reduction options are:
The OPM Retirement Services publication RI 76-12 provides detailed information about FEGLI in retirement.
FEGLI and Taxes
FEGLI premiums are deducted from your pay on a pre-tax basis, which reduces your taxable income. However, there are some important tax considerations:
For example, if you’re under 50 with $100,000 of coverage, the first $50,000 is not taxable, but the cost of the additional $50,000 (based on IRS tables) would be added to your taxable income.
Alternatives to FEGLI
If you’re considering alternatives to FEGLI, here are some options to explore:
A study by the Bureau of Labor Statistics found that while 95% of federal employees participate in FEGLI, only about 60% of private sector employees have access to employer-sponsored life insurance, and participation rates are lower.
Common FEGLI Mistakes to Avoid
Federal employees often make these mistakes with their FEGLI coverage:
How to Use This FEGLI Rates Calculator
Our calculator helps you estimate your FEGLI premiums based on your specific situation. Here’s how to use it effectively:
The results will show your biweekly premiums for each coverage option, plus your total biweekly and annual costs. The chart visualizes how your premiums are allocated across the different coverage options.
Important Disclaimer:
This calculator provides estimates based on current FEGLI rates and rules. Actual premiums may vary slightly due to:
For official information, always consult the OPM FEGLI website or your human resources office.
This tool is for informational purposes only and does not constitute financial advice. Consider consulting with a certified financial planner for personalized advice about your insurance needs.