Federal Employees News Digest
Federal Benefits Q&A
- By FEND Staff
- Oct 17, 2016
Question: “I'm currently carrying standard FEGLI life insurance. My understanding is that it will become free at age 65, but I'm led to believe that the optional $10,000 may not become free. If true, I will delete that and just keep the basic. Am I correct in my thinking?”
Answer: The FEGLI "basic insurance amount" (BIA) will be free starting when you are age 65 if you elect on Form SF 2818 (shortly before you retire) a 75 percent reduction in your BIA. Option A (standard - $10,000) will also be free after you retire (starting at age 65) if you elect on Form SF 2818 a 75 percent reduction (goes to down to $2,500).