"Federal Employees' Group Life Insurance" or FEGLI is a "group life insurance" plan that is employer-sponsored and constructed for Federal employees.

Considered the world's largest "group life insurance program" covering around 4 million "federal employees", retirees, and family members.

However the government does not limit Federal employees to only the benefits granted through FEGLI. Individual insurance policies today are prevalent and are readily acquired through the help of private vendors.

In the U.S., life insurance is a universal benefit offered to employees. In fact, about 98 percent of employers provide several life insurance protections to their employees.

FEGLI offers group life term insurance.

Meaning, FEGLI does not accumulate any cash or paid-up cost or value. It comprises of basic coverage for life insurance as well as three other options. In general, a new "federal employee" will be covered automatically by a basic "life insurance" and your employer deducts insurance premiums automatically from your salary or paycheck unless that you up the coverage.

FEGLI is meant for use as a type of immediate security against financial difficulties or death and not intended as a kind of life term insurance having a monetary or cash value like what "private insurance" agents will offer you.

OFEGLI or "The Office of Federal Employees' Group Life Insurance" is a private firm that has an agreement with the "Federal Government" to deal with, process and compensate insurance claims in the "FEGLI" program.

Besides the "basic life insurance", there are other three types of optional insurances that can be elected. However you need to have a basic insurance so you can elect an option. Unlike the basic, registration or qualifying in the optional insurances is not "automatic", meaning that you should take action in order to elect an option.

Generally, the government and you shares the basic insurance cost. Two thirds of the entire insurance cost will be paid by you and one third by the government. Note that your age will not influence your basic insurance cost. However, take note that you will pay the entire optional insurance cost, whereby your age will influence the insurance cost.

It is very essential that you are well familiar and educated about FEGLI so you are able to make the correct choice as far as your insurance plan and coverage is concerned.

Part-time employees who are not restricted to less than a year, and those that do not display recurrent appointments without scheduling, frequent duty tours scheduled are normally qualified to enroll or sign up in the program of FEGLI and their insurance coverage amount is determined and established in the exact manner as those of "full-time" employees.

Coverage options:

1. Basic Life - Amount that is equal to the employees' yearly salary "rounded up" to the following 1,000 dollars, plus 2,000 dollars whichever is larger.
2. Option A - Standard 10,000 dollars employee's coverage.
3. Option B - Additional 1-5 times base compensation coverage awarded for employees, excluding the additional 2,000 dollars which is generally added to your life insurance.
4. Option C - Coverage for qualified family members:

"Family life Insurance" provides coverage for employee's spouse and qualified children. When employees choose option C, then all their qualified" family members" are covered automatically. They may choose to elect any "one, two, three, four, or five" multiples of insurance coverage. Every multiple is equivalent to 5,000 dollars for their husband or wife and 2,500 dollars for every qualified dependent child.

Qualified and dependent children means that they should not be married and are under 22 years old, or if they are 22 years old or over, but are not capable to support themselves due to a physical or mental disability and that the disability came before the dependent child have reached 22 years old.

Qualified and dependent children can include natural-born children, stepchildren (if they are living with employees), adopted children, accepted natural children, and "foster children" (if they are living with employees).

"The Federal Employee Service Center" suggests that you demand a benefit analysis in order to investigate and assess your present FEGLI coverage, rates and cost of ongoing or continuing insurance coverage. The cost analysis will assist you in making the correct choice towards your retirement.