Do Breaks in Service Affect My FEGLI Coverage?

The Federal Employees’ Group Life (FEGLI) Program offers Basic and Optional Term insurance. Participation is voluntary and may be canceled at any time. FEGLI builds no cash or loan value and is intended for immediate aid due to financial hardship in the event of death. For federal employees who take breaks in service, you may be wondering what happens to FEGLI coverage.

 

What’s Covered During a Break in Service?

 

Life insurance coverage will not be active while on a break from federal employment. Enrolling back into the program at the same Basic and Optional coverage levels is feasible, depending on meeting specified requirements. If the break is for less than 180 days, Basic and Optional coverage is automatically restored to what it was at the time of separation. Additionally, more coverage may be elected at this time by providing required medical information or evidence of a life event.

 

What’s Covered After 180 Days?

 

Rejoining the federal workforce after 180 or more days of a break in service still automatically enrolls employees into FEGLI with the same Basic and Optional coverage retained before separation. Employees have 60 days to elect more Optional insurance if not at the maximum, regardless of previous coverage. If no new elections are made, enrollment in previous Optional elections before separation still remains.

 

Are Waivers Accepted After Rejoining Service?

 

After more than 180 days of a break in service, waivers are no longer applicable when rejoining the federal workforce. If federal life insurance coverage was waived before the break in service, the waiver would not be valid when rejoining. In addition, employees are automatically enrolled in FEGLI’s Basic coverage unless coverage is waived. If rejoining within 180 days after a break in service, however, any previous waiver will still be in effect.

 

At Federal Educators, we can help you better understand FEGLI coverage and federal retirement benefits. Give us a call and request your free analysis at 866-226-8160.