FEGLI is the largest group life insurance program in the world — and one of the least understood benefits in the federal package. Most employees accept the default Basic coverage without realizing they have made an important financial decision, or enroll in Optional coverage without understanding how dramatically it escalates in cost every five years starting at age 45. This tool calculates your exact coverage and premiums, and shows you what it will cost at every age band going forward.
Option B coverage costs $0.02 per $1,000 biweekly under age 35, climbing to $0.40 at 60–64. A federal employee carrying 5× salary ($500,000) in Option B pays $260/year at age 35 — and $5,200/year at age 60. Most employees who enrolled in Option B early in their career never revisit this decision. By age 55, private-term life insurance (if you are healthy) is frequently cheaper than continued Option B. The window to evaluate is before age 50.
Section I FEGLI Coverage & Cost Calculator
Enter your annual basic pay and current age. Select your coverage elections to see coverage amounts and biweekly premiums for each option.
Calculate My FEGLI Coverage & Premiums
Section II Option B Age Escalation — The Full Picture
The table below shows the exact Option B biweekly rate per $1,000 of coverage at every age band, and the annual premium for $100,000 of coverage. These are OPM official rates effective October 1, 2021 — the current rates in 2026.
| Age Band | Rate per $1,000 (biweekly) | Annual per $100K coverage | Annual per $500K coverage | vs. Under 35 |
|---|---|---|---|---|
| Under 35 | $0.02 | $52 | $260 | — |
| 35–39 | $0.02 | $52 | $260 | 1× |
| 40–44 | $0.03 | $78 | $390 | 1.5× |
| 45–49 | $0.06 | $156 | $780 | 3× |
| 50–54 | $0.10 | $260 | $1,300 | 5× |
| 55–59 | $0.18 | $468 | $2,340 | 9× |
| 60–64 | $0.40 | $1,040 | $5,200 | 20× |
The 45–54 age band is when private term life insurance begins to compete with FEGLI Option B on cost — and when the direction of future cost curves diverges. A healthy 45-year-old can lock in a 20-year private term policy at a fixed rate. Their FEGLI Option B rate will increase every five years. By age 60, FEGLI Option B will cost $1,040/year per $100K while a locked-in private term rate stays flat. The crossover point depends on your health rating and the multiples you carry.
Section III FEGLI Coverage Structure
What each FEGLI option actually provides
- Basic Insurance: Your salary rounded up to the next $1,000, plus $2,000. The government pays 1/3 of the total premium. Under age 35, an extra benefit doubles your Basic coverage at no cost. The extra benefit decreases 10% per year from age 36 to 45, then ends. Basic coverage auto-enrolls — you must actively waive it.
- Option A — Standard: A flat $10,000 of additional coverage. Premiums are age-banded. At retirement with Full Reduction elected, Option A reduces to $2,500 at age 65 — at no further cost. This is generally worth keeping through your career given its low cost.
- Option B — Additional: 1× to 5× your annual salary in additional coverage. You pay the full premium — no government contribution. Premiums are age-banded and double approximately every 10 years after age 40. This is the coverage most federal employees should actively evaluate at mid-career.
- Option C — Family: Coverage for your spouse ($5,000 per multiple) and dependent children ($2,500 per multiple). Up to 5 multiples. You pay based on your age, not your spouse's age. Premiums are age-banded similar to Option B.
Section IV Retirement Coverage Decisions
At retirement, you make a one-time irrevocable election for how your FEGLI coverage continues. Getting this wrong is a very expensive mistake.
Coverage reduces to 25% of your BIA after age 65 — then free for life
After age 65, Basic reduces 2% per month until it reaches 25% of the original amount. You pay no premium after age 65. This is the correct election for most retirees — it provides meaningful coverage (typically $20,000–$40,000) at zero cost in retirement.
Full coverage maintained — but you pay premiums for life at escalating rates
You retain 100% of Basic coverage into and throughout retirement. Premiums continue at rates that increase for annuitants after age 65. For large coverage amounts, this can become extremely expensive. Only elect No Reduction if you have specific estate planning reasons and can model the long-term cost.
Coverage reduces 2% per month starting at age 65 — then free when it reaches zero
At age 65, Option B reduces to zero over 50 months. After that, no coverage and no premiums. This is the most common election for retirees who want to phase out life insurance costs at retirement.
Full coverage retained in retirement at escalating annuitant rates
Annuitant Option B rates at age 65–69 are $1.04/month per $1,000 of coverage ($12.48/year per $1,000). At age 80+, the rate reaches $6.24/month per $1,000 — $74.88/year per $1,000. On $500,000 of coverage at age 80, premiums alone are $37,440/year. This election should almost never be made without specific estate planning justification.
Section V Frequently Asked Questions
Opportunities to increase or add FEGLI coverage are very limited outside of the initial 60-day enrollment window. You can increase coverage after a Qualifying Life Event (marriage, divorce, death of spouse, or birth/adoption of a child) by submitting SF-2817 within 60 days. You can also increase coverage if OPM announces a FEGLI Open Season — the last one was in 2016. You can always reduce or cancel coverage at any time. Given the limited opportunities to add coverage, new hires should carefully consider their elections during the initial 60-day window.
FEGLI life insurance proceeds are generally not subject to federal income tax and pass directly to beneficiaries outside probate. However, they may be included in your taxable estate for federal estate tax purposes. FEGLI does not build cash value — it is pure term life insurance with no investment component. Designate your beneficiaries on OPM Form SF-2823 and update them after major life events. If you have no beneficiary on file, proceeds follow a statutory order of precedence under 5 U.S.C. 8705.
No. FEGLI premiums are deducted from your gross pay but do not affect your basic pay for FERS purposes, and the coverage amount does not factor into pension calculations. FEGLI is completely separate from your FERS benefit. The only connection is that FEGLI coverage can be continued into retirement if you retire on an immediate annuity — meaning FERS retirement eligibility is required to continue FEGLI beyond separation from service.
The optimal window to evaluate is between ages 40 and 52. Before 40, FEGLI Option B rates are low enough that private term rarely wins on pure cost. After 52, private term life insurance (especially for amounts over $500,000) begins to price FEGLI out — if you are in good health and qualify for standard or preferred rates. The comparison depends on your health, the coverage amount you need, your time horizon, and whether you plan to carry coverage into retirement. WAEPA (Worldwide Assurance for Employees of Public Agencies) is available exclusively to federal employees and often provides competitive rates as an alternative to both FEGLI Option B and private term.