PolicySolutionsFEGLI getting expensive? You may have cheaper, portable options.
FEGLI is fine when you're young — but Option B premiums climb every five years, and the coverage generally doesn't follow you out of federal service. Healthy federal, postal, and government employees often lock in cheaper, portable private term instead. We'll compare your real FEGLI cost against private carriers and show you the honest math — free, no obligation.
In short: FEGLI is affordable when you're young, but Option B premiums rise every five years and the coverage generally doesn't follow you out of federal service. Healthy federal, postal, and government employees can often lock in a private term policy that's cheaper over the long run and fully portable. Compare your current FEGLI cost against a private quote before you decide.
Convenient and guaranteed — and quietly rising.
FEGLI covers millions, but its structure is exactly why a healthy federal employee should run the numbers against private term.
Federal employees and retirees covered by FEGLI — the largest group life insurance program in the world.
— U.S. Office of Personnel Management (OPM)What FEGLI Basic actually equals — your annual pay rounded up, plus $2,000 — often well short of a family's real need.
— OPM, FEGLI Basic Insurance AmountOption B premiums step up into a new age band — climbing steeply later, where a locked private-term premium often costs less.
— OPM, FEGLI rate scheduleFEGLI has two catches most employees miss — and two ways around them.
It's convenient and guaranteed — but the cost curve and the portability are where it quietly works against you.
The premiums climb with age
FEGLI Option B is age-banded — the cost jumps at each new five-year age bracket and rises steeply after your 50s. What felt cheap at 35 can become one of your largest deductions later. — OPM FEGLI rate schedule
It doesn't follow you
Leave federal service and FEGLI generally ends. You may be able to convert it — usually to a pricier whole-life policy with no exam — but a private policy you own keeps its locked-in rate no matter where your career goes.
Private term locks the price
A level-term policy sets one premium for the entire term — 20 or 30 years — so it doesn't spike as you age. For a healthy employee, that often costs less over time than riding FEGLI's rising bands.
You may be able to do both
Keep FEGLI Basic for its convenience and layer affordable private term for the bulk of your coverage — a common strategy. We'll show you the combination that costs the least for what you actually need.
FEGLI rules, options, and rates are set by the U.S. Office of Personnel Management and can change — confirm your specific coverage and cost at OPM.gov. This page is educational and not affiliated with OPM or any government program.
If you're on a federal payroll, it's worth a five-minute comparison.
The best time to compare is while you're healthy and before the next age-band increase.
Compare now if you're…
- A federal or postal (USPS) employee carrying FEGLI Option B, especially approaching a new age bracket.
- A TSA, VA, DoD, or agency employee who wants coverage that survives a job change.
- A federal retiree watching FEGLI costs rise or Basic coverage reduce.
- In good health — that's when private term prices best and locks in.
FEGLI may still make sense if…
- You have a health condition that makes private underwriting hard — FEGLI's guaranteed enrollment has real value there, though coverage with health conditions is often still available.
- You only need a small, short-term amount and value the payroll-deduction convenience.
- You're near a coverage decision deadline and need something in force immediately.
Even then, we can quote both so you decide with numbers, not guesses.
Federal employee life insurance — frequently asked questions
Should I drop FEGLI for private life insurance?
Not blindly — but compare. FEGLI Option B rises every five years, while private level term locks one premium for the whole term. Many healthy federal employees find private term cheaper over time, especially before the next age-band jump. Keep coverage in force until the replacement is approved; a licensed agent runs it both ways first.
Is FEGLI or private term cheaper?
It depends on age and health. FEGLI Basic is charged at the same rate per $1,000 of coverage at every age, while Option B is age-banded and climbs sharply in the older bands. For a healthy federal employee, private level term often prices better over 20–30 years because the premium is fixed. The only way to know is to compare your real FEGLI cost to actual private quotes — free.
Does FEGLI follow me if I leave?
Not as-is. On separation, FEGLI generally ends, though you may convert it — typically a pricier whole-life conversion with no exam. A private policy you own stays with you at the same locked-in rate.
Can federal retirees keep coverage?
You can carry FEGLI into retirement under certain rules, but some option costs rise and Basic reduces over time unless you elect to keep it. Many retirees secure a private policy while healthy to control cost. Confirm your election details at OPM before changing anything.
Does comparing cost me anything?
No. A licensed independent agent is paid by the carrier and your premium is the same as going direct. Comparing FEGLI against multiple private carriers is exactly where a specialist adds value — free to you.
See if you're overpaying FEGLI.
A licensed independent specialist (NPN #20612303) will compare your real FEGLI cost against private carriers and show you the honest math — at no cost to you.
No call-center pile-on. Here's exactly what to expect.
You reached out, so a real licensed agent picks it up — not a rotating call center, and never a sale you don't need.
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A licensed agent reaches out
We aim to reach you the same business day — someone licensed where you live, who answers your questions straight.
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A few honest questions
Enough to understand your situation and match you to the partner carrier that treats it most favorably. If it isn't a fit, we'll tell you.
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Real options — your call
We compare carriers and show you what actually fits. No pressure, no obligation; you decide if and when.
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Covered, with a safety net
If you move forward, a free-look period lets you review the real policy and change your mind for a full refund — a limited window that starts when the policy is delivered to you. Most states set a minimum length; where a state sets none, the window your insurer prints on the policy controls.
Realistic timelines: approval times vary by product and by carrier. Policies underwritten from health questions alone are typically much faster. Fully underwritten policies take longer — they require a medical exam and a records review. Your agent will tell you which path your application is on and what to expect. Any estimate you see online is a ballpark. Your real rate comes from a licensed agent comparing carriers for your exact age and health.