Keeping FEGLI life insurance after you retire
Many federal employees can keep their Federal Employees' Group Life Insurance (FEGLI) after they retire, but not automatically, and not always at the same amount. Here is what OPM's FEGLI handbook says about who qualifies and what happens to each part of your coverage.
Who can keep FEGLI in retirement
You can continue FEGLI as a retiree if all of these are true:
- You retire on an immediate annuity under a retirement system for civilian employees.
- You were insured for the 5 years of service immediately before your annuity starts, or for all the time you were eligible if that is less than 5 years.
- You are enrolled in FEGLI on the date you retire.
- You have not converted your coverage to an individual policy.
The 5-year rule applies to each part of your coverage. Plan well ahead of your retirement date if you want to carry optional coverage with you.
What happens to Basic insurance
When you retire, you choose how much Basic insurance continues after age 65 (or after retirement, if you are already 65):
- 75 Percent Reduction: coverage drops by 2 percent of the pre-retirement amount each month until 25 percent remains. It is free once you are retired and 65.
- 50 Percent Reduction: coverage drops by 1 percent a month until 50 percent remains. You pay an extra premium starting at retirement.
- No Reduction: the full pre-retirement amount stays in place. You pay an extra premium starting at retirement.
Your coverage does not reduce at 65 if you are still working.
Option A
Option A has no election in retirement. Once you are retired and 65, it reduces by 2 percent of the pre-retirement amount each month until 25 percent remains, and it is free from then on.
Options B and C
You choose how many multiples of Option B and Option C to keep. For each option you also choose:
- Full Reduction: once you are retired and 65, each multiple reduces by 2 percent a month until nothing remains. You pay active-employee premiums for your age until the reduction starts, then it is free.
- No Reduction: coverage does not reduce, and you keep paying premiums.
Two rules to remember
You cannot increase your coverage after you retire, and you cannot reinstate coverage you cancel. If you chose 50 Percent or No Reduction for Basic, you can later change only to the 75 Percent Reduction.
Planning around the reductions
Under the free options, most FEGLI coverage shrinks a great deal after 65, and keeping it at full value costs more as you age. Before you retire, it helps to decide how much life insurance your family will still need, and for how long. Private life insurance is separate from FEGLI, and some retirees use both.
Sources
- OPM, Federal Employees' Group Life Insurance Handbook, checked October 7, 2026
- OPM FAQ: What will happen to my FEGLI Basic life insurance when I retire?, checked October 7, 2026
- OPM FAQ: Do I have to pay for my insurance coverage after I retire?, checked October 7, 2026