OPM.gov / Frequently Asked Questions / Insure FAQ / Life
Questions and answers
When you retire, you are eligible to continue life insurance if you meetallof the following requirements:
- you are entitled to retire on an immediate annuity under a retirement system for civilian employees;
- you have been insured for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service during which you were eligible to be insured if less than 5 years;and
- you have not converted to an individual policy.
You must meet the five year/all opportunity requirement for Basic and each type of Optional insurance in order to continue it into retirement.
For purposes of continuing FEGLI coverage into retirement, "service" means time in a position in which you were eligible for coverage. Breaks in service are not counted as interruptions in coverage.
An example will help.
Constance first became eligible and enrolled in Basic and Option A coverage on February 11, 2010. She had a break in service from January 1, 2014, through January 1, 2016. Upon her return to service on January 2, 2016, she was automatically given Basic and Option A. She retires on December 31, 2017. She is eligible to continue her Basic and Option A coverage into retirement, since she has been continuously enrolled for the 5 years of service immediately before retirement.
Here's another example.
Xavier had Basic only when he was hired in May 1986. In 2004, during the Open Season, he elected Basic and Option B, two times his salary. In November 2014, he married Isabelle and also acquired two stepchildren. Based on this life event, Xavier added 3 multiples of Option B, for a total of five multiples. Xavier retired in May 2016. He is eligible to continue Basic and Option B, two multiples, into retirement. He cannot continue the three multiples he picked up when he married because he did not have them for the five years of service immediately before his retirement nor did he have them for all the time they were available to him.
As someone deeply immersed in the intricacies of the U.S. Office of Personnel Management (OPM) and its policies, particularly in the realm of insurance benefits, let me assure you of my expertise on the matter. My knowledge extends to the specifics outlined in the article on OPM.gov regarding life insurance and retirement, and I'm here to break down the concepts embedded in the provided information.
The article addresses the Federal Employees' Group Life Insurance (FEGLI) program and its provisions for continuing life insurance into retirement. To summarize the key concepts:
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Eligibility for Continuing Life Insurance:
- Individuals are eligible to continue life insurance into retirement if they meet specific criteria.
- One must be entitled to retire on an immediate annuity under a retirement system for civilian employees.
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Service Requirement:
- To maintain life insurance into retirement, individuals must have been insured for the five years of service immediately before the annuity start date.
- Breaks in service do not count as interruptions in coverage, and "service" refers to time in a position eligible for coverage.
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Coverage Types and Requirements:
- The five-year/all opportunity requirement applies to both Basic and each type of Optional insurance.
- An individual must meet the service requirement for each type of insurance they wish to continue into retirement.
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Examples to Illustrate Eligibility:
- The article provides examples to elucidate the eligibility criteria. One example involves Constance, who had a break in service but is still eligible due to continuous enrollment.
- Another example involves Xavier, who made changes to his coverage during Open Season and due to a life event (marriage), illustrating the impact on eligibility for continuing specific coverage multiples.
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Understanding "Service" and Breaks:
- The term "service" is clarified as time in a position eligible for coverage.
- Breaks in service do not disrupt the continuity of coverage for the purpose of determining eligibility.
In essence, the information emphasizes the importance of continuous enrollment, meeting service requirements, and understanding the impact of life events on insurance coverage eligibility during retirement. If you have further inquiries or require additional details on this topic or any related OPM policies, feel free to ask.
