If you’re a federal employee worried about losing your life insurance during a furlough, there’s good news, your Federal Employees’ Group Life Insurance (FEGLI) coverage continues for up to 12 consecutive months, even if you’re in a non-pay status. During this period, you’re not responsible for paying any premiums, and your Basic and Optional coverage remains fully active. If you’ve had a FEGLI claim denial during or after a furlough, speaking with a FEGLI Claim Denial Attorney can help ensure your rights and benefits are protected.
What Happens to FEGLI Coverage During a Furlough
No, your FEGLI coverage will not stop while you are furloughed. Coverage automatically continues for up to 12 months without cost to you or your agency. The government covers the Basic insurance premiums, and no payments are required for Optional coverages during this time.
Key details include:
- Continuation: Your Basic and Optional FEGLI coverage remains active for up to 12 consecutive months from the start of your non-pay status.
- No Premiums: You’re not required to make premium payments during this period.
- Returning to Pay Status: If you return to work briefly (less than four consecutive months) and then are furloughed again, the original 12-month clock continues. A new 12-month period only starts if you’ve been back in pay status for at least four full months.
- Termination and Conversion: If your furlough or non-pay status lasts longer than 12 months, FEGLI coverage ends, though you’ll receive a 31-day free extension of coverage. After that, you can convert your group coverage into a private individual policy without a medical exam, though premiums will likely be higher.
In the case of a government shutdown, laws and regulations ensure that FEGLI coverage continues uninterrupted. Any missed withholdings or premiums are reconciled from your retroactive pay once the shutdown ends.
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FEGLI Enrollments, Changes, and Claims During a Furlough
Even during a lapse in appropriations or government shutdown, FEGLI claims and transactions are still processed. The Office of Federal Employees’ Group Life Insurance (OFEGLI), administered by MetLife, continues to review and pay out claims throughout furlough periods.
- Claims Processing: OFEGLI follows emergency procedures to expedite all life insurance claims. Survivors or beneficiaries should contact OFEGLI at 1-800-633-4542 to file a claim.
- Enrollments and Changes: Agencies are expected to continue processing necessary FEGLI transactions, including those tied to qualifying life events (QLEs) such as marriage, divorce, or the birth of a child.
- Cancellations/Reductions: You can choose to reduce or cancel your coverage anytime by submitting the appropriate form (SF 2817) to your HR office.
While there might be minor administrative delays depending on agency staffing, the essential functions of FEGLI, claims processing, benefit payments, and HR transactions, remain operational.
How Are Death or AD&D Claims Filed During a Shutdown?
The process for filing death or accidental death and dismemberment (AD&D) claims does not change during a government shutdown. Beneficiaries should continue working directly with the decedent’s employing agency to verify coverage and submit all required documentation. Once the employing agency confirms the employee’s coverage, the claim is sent to OFEGLI, which will review and process it as usual. If any issues arise or benefits are delayed, an experienced Accidental Death and Dismemberment Lawyer can help ensure the claim is handled properly and that survivors receive the compensation they’re entitled to.
Even during a lapse in funding, OFEGLI maintains operations to ensure that eligible beneficiaries receive the benefits they are entitled to under the FEGLI program.
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Exceptions to the 12-Month Continuation Rule
The 12-month continuation period applies broadly, but there are some exceptions and extensions:
- Voluntary Cancellation: You may elect to cancel or reduce coverage at any time by filing the proper form with HR.
- Active Duty Military (Extension): Employees called to active duty can extend coverage for another 12 months (total of 24 months) by paying both employee and agency premiums.
- Workers’ Compensation (Compensationer Status): If you’re receiving benefits through the Office of Workers’ Compensation Programs (OWCP), you may continue coverage under OPM once you meet certain requirements.
- Insufficient Pay: If your pay is too low to cover premiums, you may arrange direct payments to maintain coverage.
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Protecting Your FEGLI Rights During a Denial
Even though coverage continues during a furlough, claim denials can still occur. OFEGLI and OPM decisions can be complex, and many employees or beneficiaries are unsure how to challenge them. A FEGLI Claim Denial Attorney can review the denial, gather supporting documentation, and pursue the full benefits you are entitled to under federal insurance law.
Call today for a free consultation. We’ll review your claim, explain your legal options, and develop the best strategy to secure the benefits you deserve.
Let us handle the legal battle so you can focus on what truly matters, honoring your loved one’s legacy and moving forward with financial peace of mind.
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