For most federal employees, FEGLI Option B is the easiest life insurance to buy: it comes out of your paycheck and needs no medical exam. It is also priced in five-year age bands, and the price jumps sharply at 60. If you are in your 50s and healthy, this is the moment to compare.
How Option B is priced
Option B coverage is one to five times your annual basic pay, rounded up to the next $1,000. The monthly premium per $1,000 depends only on your age band:
| Age | Monthly per $1,000 | Monthly for $400,000 |
|---|---|---|
| Under 35 | $0.043 | $17.20 |
| 35-39 | $0.043 | $17.20 |
| 40-44 | $0.065 | $26.00 |
| 45-49 | $0.130 | $52.00 |
| 50-54 | $0.217 | $86.80 |
| 55-59 | $0.390 | $156.00 |
| 60-64 | $0.867 | $346.80 |
| 65-69 | $1.040 | $416.00 |
| 70-74 | $1.863 | $745.20 |
| 75-79 | $3.900 | $1,560.00 |
| 80 and over | $6.240 | $2,496.00 |
OPM’s published Option B rates, effective October 1, 2021. Employees and retirees pay the same rates before age 65.
A federal employee earning $80,000 with 5x Option B has $400,000 of coverage. That costs $156 a month at 55, $346.80 at 60, $416 at 65 and $745.20 at 70.
Your Option B cost by age
Your Option B coverage
| Coverage amount |
|---|
What Option B costs you each month
| At your age today | |
|---|---|
| Cost jump when you turn 60 | |
| Total Option B premiums from today to age 80 (No Reduction) |
What to consider
Monthly Option B rates are OPM's published rates per $1,000, effective October 1, 2021; retirees pay the same rates as employees before 65. Coverage is your annual basic pay rounded up to the next $1,000, times your multiples. This estimate assumes your pay stays the same. Basic, Option A and Option C are not included. Lifeworth Insurance Agency is an independent agency and is not affiliated with OPM or the U.S. government.
Option B in retirement
- To keep Option B after you retire, you generally need to have had it for the five years right before retirement (or since your first opportunity to enroll).
- You can carry fewer multiples than you had, but not more.
- At 65 you choose, for each multiple, Full Reduction (free, but coverage drops by 2% a month and ends after 50 months) or No Reduction (you keep paying the rates above for life).
When a level-term policy makes sense
A level-term policy keeps one price for 10, 20 or 30 years, so a healthy 55-year-old can lock in a rate before the Option B jump. It also stays with you if you leave federal service. FEGLI may still be the better fit if your health makes private coverage expensive, or for the smaller amount of Basic insurance many employees keep.
Do not cancel Option B until the new policy is approved and in force. Getting Option B back later usually requires an open season, a qualifying life event or proof of good health.
Frequently asked questions
Does this page cover Basic, Option A and Option C?
No. They are priced differently. This page focuses on Option B because its cost rises the fastest with age.
Does a pay raise change my premium?
Yes. Your Option B amount follows your annual basic pay, so a raise increases both the coverage and the premium.
Lifeworth Insurance Agency is an independent agency and is not affiliated with OPM or the U.S. government. Check opm.gov for current FEGLI rules and rates.
Contact Lifeworth Insurance
Lifeworth Insurance Agency
2881 E Oakland Park Blvd, Fort Lauderdale, FL 33306
(954) 834-5433 · contact@lifeworthinsurance.com