Federal Employees Life Insurance Program Claim Process: A Complete Guide to FEGLI Benefits

The federal employees life insurance program claim process begins by notifying the appropriate office—the employing agency for active workers or the Office of Personnel Management (OPM) for retirees—of the insured’s death. Beneficiaries must then complete Form FE-6 (Claim for Death Benefits) and submit it with a certified death certificate to the Office of Federal Employees' Group Life Insurance (OFEGLI).

The Federal Employees' Group Life Insurance (FEGLI) program is the largest group life insurance program in the world, covering millions of federal employees, retirees, and their family members. While the program is designed to provide financial security, the administrative process of claiming benefits can be complex during a time of grief. As of 2026, the procedures remain strictly regulated by federal law, requiring specific documentation and adherence to a "statutory order of precedence" if a valid designation of beneficiary is not on file. Understanding these nuances is essential for ensuring that life insurance proceeds are distributed accurately and efficiently to the intended recipients.

Understanding the Structure of FEGLI Coverage

Before initiating a claim, it is important to understand what type of coverage is being processed. FEGLI consists of several distinct parts, and the claim process may vary slightly depending on which options the deceased held.

Basic Insurance

Basic insurance is the core coverage for most federal employees. It is equal to the employee’s annual rate of basic pay, rounded up to the next $1,000, plus $2,000. For employees under age 45, there is an "Extra Benefit" that can double the amount of Basic insurance at no additional cost.

Optional Insurance

In addition to Basic, employees may have elected one or more of the following:

• Option A (Standard): A flat $10,000 of coverage.
• Option B (Additional): Coverage equal to one, two, three, four, or five multiples of the employee’s annual basic pay.
• Option C (Family): This covers the spouse and eligible dependent children. Unlike other FEGLI components, if a family member dies, the federal employee is the beneficiary and must initiate the claim.

Accidental Death and Dismemberment (AD&D)

For active employees, Basic and Option A include AD&D coverage. This provides double the benefit if the death is accidental. However, AD&D coverage does not apply to retirees or those on compensation from the Department of Labor’s Office of Workers' Compensation Programs (OWCP).

The Statutory Order of Precedence

A critical aspect of the federal employees life insurance program claim process is determining who is legally entitled to the benefits. FEGLI benefits are paid out based on a strict legal hierarchy. This hierarchy overrides any instructions left in a last will and testament or other legal documents.

If the deceased filed a valid Designation of Beneficiary (Form SF 2823), the proceeds are paid directly to the individuals or entities named on that form. If no such form is on file, or if the designation is invalid, OPM follows the statutory order of precedence:

1. Widow or Widower: To the surviving legal spouse.
2. Children: To the child or children of the deceased in equal shares, with the share of any deceased child distributed among that child’s descendants (per stirpes).
3. Parents: To the parents of the deceased in equal shares or the entire amount to the surviving parent.
4. Executor or Administrator: To the court-appointed representative of the deceased's estate.
5. Other Next of Kin: To other next of kin as determined by the laws of the state where the deceased lived at the time of death.

It is a common mistake to assume a Will dictates FEGLI disbursements. Federal law (5 U.S.C. § 8705) explicitly states that the designation of beneficiary form or the order of precedence takes priority over any other legal instrument.

Step-by-Step Guide to the Claim Process

The FEGLI claim process involves multiple agencies. While OPM manages the program, a private entity, the Office of Federal Employees' Group Life Insurance (OFEGLI)—which is an administrative unit of MetLife—is responsible for the actual processing and payment of claims.

Step 1: Initial Notification of Death

The first step is to inform the federal government of the death. The contact point depends on the employment status of the deceased:

• For Active Employees: Notify the deceased’s Human Resources (HR) office at their employing agency. The agency will then certify the insurance coverage and provide the necessary claim forms to the beneficiaries.
• For Retirees: Notify OPM’s Retirement Office. This can be done via the OPM online portal or by calling the Retirement Information Office. OPM will then verify the retiree's coverage status and mail the claim package to the eligible beneficiaries.
• For Option C (Family) Claims: If an employee's spouse or child dies, the employee should contact their HR office (if active) or OPM (if retired) to obtain Form FE-6 DEP (Statement of Claim for Option C Family Life Insurance).

Step 2: Complete Form FE-6

The primary document required is Form FE-6 (Claim for Death Benefits). Each beneficiary must complete their own separate form. The form requires:

• Social Security numbers for the deceased and the beneficiary.
• The deceased's date of birth and date of death.
• Information regarding the beneficiary's relationship to the deceased.
• Payment election (lump sum or account-based).

Step 3: Gather Supporting Documentation

A claim cannot be processed without a certified death certificate. A photocopy is generally not sufficient unless specifically authorized by OFEGLI. The death certificate must show the cause and manner of death, which is particularly important for AD&D claims.

If the beneficiary is a minor, the claim must be signed by a court-appointed guardian of the minor’s estate. If the claim is being made by an executor of an estate, court documents proving the appointment must be included.

Step 4: Submission to OFEGLI

Once the forms are completed and the death certificate is obtained, the package should be sent to:

OFEGLI P.O. Box 608 Utica, NY 13503-0608

It is recommended to use a mailing method with tracking to ensure the sensitive documents are received.

Payment Options and the Total Control Account

As of 2026, beneficiaries of FEGLI proceeds typically have options regarding how they receive the funds.

The Total Control Account (TCA) is the default payment method for claims of $5,000 or more. The money is placed in an interest-bearing account, and the beneficiary receives a book of drafts (checks) that they can use to withdraw any amount at any time. It is important to note that the TCA is not a bank account and is not FDIC-insured; however, it is backed by the financial strength of MetLife and protected by state insurance guaranty associations.

Common Timelines and Delays

Under normal circumstances in 2026, OFEGLI aims to process claims within 30 to 60 days of receiving all completed documentation. However, several factors can delay the disbursement of funds:

1. Missing Designations: If OPM cannot find a Designation of Beneficiary form, they must verify the order of precedence, which may require additional birth, marriage, or divorce records.
2. Incomplete Forms: Missing signatures, incorrect Social Security numbers, or failure to provide a certified death certificate will halt the process.
3. Homicide Investigations: If the cause of death is listed as "Homicide" or "Pending Investigation," OFEGLI will not pay the benefit until the beneficiary is cleared of involvement in the death (the "Slayer Rule").
4. Competing Claims: If multiple parties claim they are the rightful beneficiary, OFEGLI may hold the funds or pay them into a court (interpleader) until the legal dispute is resolved.

Taxation of FEGLI Benefits

Beneficiaries often wonder about the tax implications of life insurance proceeds. Generally, FEGLI death benefits are not subject to federal income tax. The amount received is considered a payout of a life insurance contract, which is excluded from gross income under the Internal Revenue Code.

However, any interest earned on the proceeds—such as interest earned while the money is in a Total Control Account—is taxable as ordinary income in the year it is credited to the account. Additionally, while the proceeds are not income-taxable to the beneficiary, the value of the life insurance may be included in the deceased’s gross estate for federal estate tax purposes, which could be relevant for very large estates.

Frequently Asked Questions

Can I file a claim if the death occurred outside the United States? Yes. However, the death certificate must be translated into English and, in many cases, authenticated by a U.S. consular officer in the country where the death occurred. This process can significantly extend the timeline for the federal employees life insurance program claim process.

What happens if a beneficiary dies before the insured? If a named beneficiary dies before the insured person, that beneficiary's share is typically distributed among the remaining named beneficiaries. If no named beneficiaries survive, the proceeds are paid according to the statutory order of precedence.

Is there a time limit for filing a FEGLI claim? There is no strict "expiration date" for filing a life insurance claim under FEGLI. However, beneficiaries are encouraged to file as soon as possible. If proceeds remain unclaimed for many years, they may eventually be turned over to state unclaimed property funds, making the recovery process much more difficult.

Can I change the beneficiary designation after the insured has died? No. The designation of beneficiary becomes irrevocable upon the death of the insured. No one—including a power of attorney or an executor—can change who receives FEGLI benefits after the employee or retiree has passed away.

What if the deceased had "Living Benefits"? Living Benefits allow terminally ill employees to receive a portion of their Basic insurance early. If the deceased had already received a Living Benefit, the amount paid to the beneficiaries at the time of death will be reduced by the amount already paid out, plus an adjustment for interest.

Practical Recommendations for Beneficiaries

To ensure a smooth transition and avoid administrative hurdles, beneficiaries should take the following actions immediately:

1. Request Multiple Death Certificates: You will likely need "long-form" certified copies for insurance, social security, and estate purposes. Order at least 5–10 copies from the funeral director or vital records office.
2. Locate the SF 2823: Search the deceased’s records for a copy of their Designation of Beneficiary. Knowing who was named can help you anticipate if there will be disputes or if the order of precedence will apply.
3. Contact the HR Office Directly: If the deceased was an active employee, the HR office is your greatest ally. They have the "Official Personnel Folder" (OPF) which contains the insurance certifications needed by OFEGLI.
4. Consult a Financial Advisor: Because FEGLI payouts can be substantial—especially with Option B multiples—having a plan for the funds (and understanding the interest-bearing nature of the Total Control Account) is vital for long-term financial stability.

By following these steps and understanding the legal framework of the FEGLI program, beneficiaries can navigate the claim process with greater confidence and clarity.