Protection priorities
- Estimate income replacement, debt and final-expense needs.
- Confirm beneficiaries after family or career changes.
- Understand Basic and Optional FEGLI coverage.
For federal employees and retirees
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Life Insurance Review
Federal coverage and private options
Rising costs: Optional FEGLI premiums increase as you move into higher five-year age bands. Basic premiums are not based on age.
Reduction or elimination of coverage: FEGLI reductions begin the second month after age 65 or retirement, whichever is later: a 75% Reduction election leaves 25% of the original Basic amount, while a 50% Reduction election leaves 50%. No Reduction keeps Basic coverage level. With Full Reduction, Option B and Option C coverage gradually reduce to zero.
Keeping 100% Basic coverage can cost substantially more: Choosing No Reduction preserves 100% of your Basic Insurance Amount and requires an additional premium starting at retirement. That additional premium continues for life unless you change the election or discontinue coverage; the regular Basic premium also applies until age 65. Compare the lifetime cost with the protection your family needs.
Optional FEGLI premiums rise in five-year age bands, and certain FEGLI options may reduce or disappear after retirement.
Know what protects your family now—and later.
FEGLI Basic and Optional coverage work differently. Optional premiums increase in five-year age bands, and retirement elections can affect both your cost and the amount of coverage that remains. A review should consider beneficiaries, survivor income, final expenses, long-term family protection, and certain FEGLI options may reduce or disappear after retirement.
Private level term, Return of Premium term or permanent coverage may complement FEGLI when suitable. They are not automatically better, cheaper or guaranteed to be issued, and existing coverage should not be reduced until any new policy is approved and accepted.
Browse life-insurance companies & consumer brochuresProtection priorities by age
What should your life-insurance review address now?
Age does not determine the answer by itself. Family responsibilities, health, retirement timing, affordability and current coverage all matter.
Ages 40–45 · Build protection
Protect today while keeping tomorrow's choices open.
Review the amount and duration of protection before FEGLI's Extra Benefit finishes phasing out.
Coverage choices
- Compare level term, Return of Premium term and permanent coverage.
- Review the higher cost and contractual return conditions of ROP term.
- Consider private coverage as a possible complement—not an automatic replacement.
Next step
- Keep existing coverage until any new policy is issued and accepted.
- Compare guarantees, exclusions and affordability.
- Document why the selected coverage period fits the family need.
Ages 46–50 · Measure the need
Match the coverage period to the years protection is needed.
Costs and responsibilities may be changing at the same time, so compare purpose before product.
Protection priorities
- Recalculate family income needs and major debts.
- Review FEGLI Optional premiums as age bands change.
- Confirm beneficiary designations.
Coverage questions
- Decide whether the need is temporary or lifelong.
- Compare term length with the planned retirement date.
- Recognize that private pricing and approval depend on underwriting.
Next step
- Request written illustrations from available carriers.
- Compare guaranteed and non-guaranteed values separately.
- Keep FEGLI unchanged if it remains the best fit.
Ages 51–55 · Prepare for retirement
Project protection and cost beyond the retirement date.
Retirement may reduce income-replacement needs while increasing the importance of survivor and final-expense planning.
Protection priorities
- Compare current FEGLI cost with the benefit provided.
- Estimate survivor income after retirement.
- Review debts, final expenses and legacy goals.
Coverage questions
- Learn how FEGLI may continue into retirement.
- Review private-policy affordability through the intended duration.
- Consider whether temporary and permanent needs should be separated.
Next step
- Put current and proposed coverage side by side.
- Review underwriting before relying on a private-policy quote.
- Add private coverage only when it fills a documented gap alongside FEGLI.
Ages 56–60 · Coordinate protection
Connect life insurance with pension and survivor decisions.
Life insurance should support—not duplicate—the survivor income already available through federal benefits.
Protection priorities
- Project FEGLI premiums and coverage into retirement.
- Coordinate coverage with survivor-annuity decisions.
- Decide whether protection is for income, debt, final expenses or legacy.
Coverage questions
- Review retirement reduction elections and their consequences.
- Compare private coverage only while insurability and affordability are known.
- Separate policy guarantees from projections.
Next step
- Use a written coverage and survivor-income comparison.
- Confirm policy ownership and beneficiaries.
- Keep FEGLI in place until complementary private coverage is effective.
Ages 61–65 · Make informed elections
Protect the people who depend on the retirement plan.
Review coverage, premiums and survivor outcomes before making elections that may be difficult to reverse.
Protection priorities
- Understand FEGLI continuation and reduction choices.
- Confirm survivor income and final-expense needs.
- Review beneficiaries across all federal and private benefits.
Coverage questions
- Decide how much protection must remain for life.
- Compare lifetime affordability, not only the first premium.
- Account for underwriting and state availability.
Next step
- Review official OPM information and policy documents.
- Keep the coverage that best fits even when that means no change.
- Coordinate insurance with the full survivor plan.
Next step
Identify the gap, then complement FEGLI.
Complete the needs analysis to determine whether private level term, Return of Premium term or permanent coverage should add protection alongside FEGLI. Keep existing coverage in place until any new policy is approved, issued and accepted.
Coverage types to compare
Match the policy to the job it must do.
No policy type is automatically best. The right path depends on how long protection is needed, the benefit amount, affordability, underwriting, guarantees and the family's long-term goal.
Level Term Life
Provides a death benefit for a selected term with level premiums during that period. It is commonly used for income replacement, a mortgage or the years children remain dependent.
Compare level termReturn of Premium Term
Provides term-life protection and may return eligible premiums when the term ends if the policy remains in force and all contract conditions are met. It generally costs more than ordinary term. A premium refund is generally treated as a return of premiums paid up to the policyholder's cost basis, while death-benefit proceeds are generally excluded from a beneficiary's gross income; exceptions can apply.
Compare ROP termWhole Life
Provides lifetime coverage when required premiums are paid, typically with level premiums and guaranteed cash value defined by the policy. It generally costs more than term insurance.
Compare whole lifeFinal Expense Whole Life
Uses a smaller permanent death benefit to help with funeral, medical and other end-of-life costs. Some plans use simplified or graded benefits, so limitations must be reviewed carefully.
Compare final-expense coverageWhere protection and retirement may connect
Protect first. Make the retirement decision later.
A Return of Premium term policy is life insurance. If the insured outlives the term, the policy remains in force and all contract conditions are met, eligible premiums may be returned. Only then—and only after a new needs and suitability review—could the policyowner consider using some or all of that money to fund an annuity or another retirement goal.
1Protect
Maintain the selected life-insurance protection during the term.
2Receive
If the policy conditions are met, receive the eligible returned premiums.
3Review
Complete a new retirement-income and suitability review before choosing what to do with the money.
There is no automatic transfer into an annuity and no obligation to purchase one. Any annuity bonus, vesting schedule, surrender charge and withdrawal provision is governed by the separate annuity contract and rider.
Life Appointments
Read each company's policy information and consumer brochures. Choose the materials you would like to discuss when completing your needs analysis.
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