This program is the largest group life insurance program in the world, covering over 4 million federal employees, retiree’s and their family members. The program is term life and provides a basic level of coverage and three optional levels of coverage. The basic amount of coverage is determined by the employee’s salary level. The optional levels provide additional amounts of insurance and can include coverage for family members. The government pays 100% of the premium cost for the basic coverage for postal employees and 33% for all other Federal workers.

What is Basic Insurance?

That is coverage equal to your annual basic pay, rounded up to the next $1,000, plus $2,000 (or a minimum of $10,000).

What is the Extra Benefit?

The Extra Benefit doubles the amount of Basic insurance payable if you die at age 35 or younger. Beginning on your 3rd birthday, the Extra Benefit decreases by 10% each year. If you die at age 45 or older, there is no Extra Benefit. You do not pay for the Extra Benefit.

Who is eligible?

You are eligible to have Basic insurance in retirement if: (1) you retire on an immediate annuity; (2) you were enrolled in Basic insurance for the five years of service immediately before your annuity began or for all opportunities during which it was available to you, if enrolled less than five years; (3) you or the assignee(s), if applicable, do not cancel the coverage; (4) you or the assignee(s) do not convert it to an individual policy; and (5) you did not receive a full Living Benefit.

Will my Basic insurance reduce?

• What is 75% Reduction?

  This means that your Basic insurance will reduce by a fixed amount each month, equal to 2% of the amount of basic insurance you carried into retirement. Your Basic insurance will continue to reduce until 25% of the original amount remains. You do not pay an extra premium for this choice.

• What is 50% Reduction?

  This means that your Basic insurance will reduce by a fixed amount each month, equal to 1% of the amount of Basic insurance you carried into retirement. Your Basic insurance will continue to reduce until 50% of the original amount remains. You pay an extra premium for this choice.

• What is No Reduction?

  This means that your Basic insurance will not reduce. You pay an extra premium for this choice.

When do reductions begin?

If you elect 75% Reduction or 50% Reduction, your Basic insurance begins to reduce on the first day of the second month after you reach age 65 or on the first day of the second month after you retire,, which is later.