How FEGLI Option B Works
Option B is the Additional coverage option under the Federal Employees’ Group Life Insurance Program.
Coverage amount
According to OPM, Option B may be elected at one, two, three, four, or five multiples of annual basic pay after rounding that pay up to the next $1,000.
For example, if annual basic pay is $101,250, the Option B calculation uses $102,000. Three multiples would equal $306,000 of Option B coverage.
Cost
Employees pay the full cost of Optional insurance. Option B cost is age-based and changes when you enter a new age band.
Important planning point
FEGLI can remain valuable even when its premium increases. If health has changed, replacing existing group coverage with private insurance may be difficult or impossible.
Compare first. Apply second. Change existing coverage only after you understand the consequences.