Federal employees

Does your federal life insurance change when you retire?

FEGLI can be valuable and can continue into retirement. What you elect, and when, decides how much stays and what it costs. This page explains the choices without the jargon.

The short answer

It can continue, reduce or cost more, depending on eligibility and your elections.

Source: U.S. Office of Personnel Management, Learn more about life insurance benefits and retirement.

Review my FEGLI plan Read the full answer

Cornerstone Capital is an independent life insurance brokerage, not the U.S. Department of Veterans Affairs, Department of Defense, any military branch, or a government agency. We do not administer VA or FEGLI benefits.

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The short answer

It can continue, reduce or cost more, depending on eligibility and your elections.

To keep FEGLI in retirement, OPM generally requires that you were insured for the 5 years immediately before retirement, or for all your service when coverage was available if that is shorter, and that your annuity starts within 30 days. The rule applies separately to Basic and to each Option.

In retirement you can reduce or cancel coverage. You cannot increase it. Your reduction election for Basic changes how much stays and what you pay.

What FEGLI can do in retirement

Continue Basic and Options for eligible retirees.
With the 75% reduction election, Basic reduces gradually and stops costing anything once reductions begin.
Keep a larger amount, with the 50% or No Reduction election, in exchange for premiums for life.
Convert to an individual policy without new medical underwriting if coverage ends involuntarily.

What it does not do

Increase after you retire.
Continue if you miss the 5-year requirement for that coverage.
Stay level by default. Without an election, Basic takes the 75% reduction.
Wait indefinitely on conversion. The window is typically 60 days, or 31 days after your agency's notice if that comes sooner.

Side by side

Basic life reduction elections at retirement, per OPM

Question	75% reduction	50% reduction	No reduction
What happens to Basic	Reduces 2% a month to 25% of the amount	Reduces 1% a month to 50% of the amount	Stays at 100%
When reductions begin	Second month after 65 or after retirement, whichever is later	Same	No reduction
Cost after reductions begin	No premium	Premiums for life	Higher premiums for life

Did you elect to keep FEGLI at retirement, and what reduction option did you choose?

The election is the decision

The reduction election looks like a form. It is really a choice about how much life insurance your family has at 75 or 85, and what you pay for it from your annuity. If you do not choose, Basic defaults to the 75% reduction.

Review my FEGLI plan

What would your spouse need if your annuity stopped?

Coverage and survivor annuity are different questions

Life insurance pays a lump sum. A survivor annuity is a monthly payment you elect separately at retirement. Many families need to think about both together, because one can fill a gap the other leaves.

Do you know what Options A, B and C cost after 65?

Options reduce too

Option A reduces to $2,500 after 65 or retirement, whichever is later, and then has no premium. Options B and C let you choose Full Reduction, which ends the premium and reduces coverage over 50 months to zero, or No Reduction, which keeps the coverage and the premium.

OPM's calculator shows your own numbers. Use it before you decide anything.

Keeping what you have

When FEGLI may be all you need

Your elected coverage plus savings fits what your family would need.
Your mortgage is paid off and no one depends on your annuity alone.
You chose No Reduction knowingly and the premiums fit your budget.
A survivor annuity and other assets already protect your spouse.

What a licensed independent broker can check

Line up what FEGLI will be worth at 65, 75 and 85 under your elections against your family's needs.
Compare the lifetime cost of keeping a FEGLI option with individual coverage, where health allows.
Flag the conversion deadline if coverage is ending involuntarily.
Tell you when FEGLI already does the job. Confirm every FEGLI detail with OPM and your agency.

Review my FEGLI plan

You see your result before anyone asks for contact details. A call happens only if you request one.

Official sources

Check it yourself

Every fact on this page comes from the agency that runs the program. Rules and amounts change, so confirm details with the source before you act.

Learn more about life insurance benefits and retirement
U.S. Office of Personnel Management
To keep FEGLI in retirement you generally need to have been insured for the 5 years immediately before retirement (or all service when coverage was available, if less), and your annuity must start within 30 days. The rule applies separately to Basic and each Option. Coverage can be reduced or cancelled in retirement, never increased.
Checked October 14, 2026
Do I have to pay for my insurance coverage after I retire?
U.S. Office of Personnel Management
Retirees under 65 keep paying premiums. Basic reduction elections are 75%, 50% or No Reduction. Reductions begin the second month after age 65 or after retirement, whichever is later. Without an election, Basic takes the 75% reduction and Options B and C take Full Reduction.
Checked October 14, 2026
FEGLI calculator: continuation of coverage after retirement
U.S. Office of Personnel Management
With 75% reduction, Basic drops 2% a month to 25% of its amount, with no premium once reductions begin. 50% reduction and No Reduction carry premiums for life. Option A reduces to $2,500 and then has no premium; No Reduction is not available for Option A. Options B and C offer Full Reduction or No Reduction.
Checked October 14, 2026
FEGLI Calculator
U.S. Office of Personnel Management
OPM's own calculator estimates FEGLI amounts and premiums before and after retirement.
Checked October 14, 2026
What is a conversion policy? Who is eligible to convert their FEGLI life insurance benefit?
U.S. Office of Personnel Management
When FEGLI ends involuntarily, it can usually be converted to an individual policy without a medical exam. The deadline is typically 60 days after the event, or 31 days after the agency's notice, whichever is sooner.
Checked October 14, 2026

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