FEGLI Option C: What Federal Employees Pay for Family Life Insurance Coverage

The short answer: FEGLI Option C (Family Life Insurance) provides life insurance on a federal employee’s spouse and eligible dependent children. Each multiple covers $5,000 for a spouse and $2,500 per eligible dependent child under age 22. Federal employees may elect up to 5 multiples — a maximum of $25,000 in spouse coverage and $12,500 per child. Premiums are age-banded, increase over time, and continue into retirement subject to a reducing or no-reduction election. (OPM.gov, FEGLI Option C)

Key Takeaways

• Option C covers $5,000 per multiple for a spouse and $2,500 per multiple per dependent child under age 22 (or age 22+ if a full-time student). (OPM.gov FEGLI)
• Employees may elect 1 to 5 multiples of Option C. Maximum coverage is $25,000 for a spouse and $12,500 per dependent child.
• Option C premiums are age-banded and increase as the employee ages. Unlike Basic Life Insurance, the government does not share the cost of Optional insurance.
• Upon retirement, Option C continues but requires an irrevocable reducing or no-reduction election. Under full reduction, coverage decreases by 2% per month starting at age 65 until it reaches zero.
• Option C coverage for dependent children terminates automatically when the child turns 22 (or leaves full-time student status), regardless of the employee’s election.

What Is FEGLI Option C?

The Federal Employees’ Group Life Insurance (FEGLI) program includes a Basic benefit and three Optional coverages: Options A, B, and C. Options A and B provide coverage on the federal employee’s own life. Option C is the family coverage option. It insures the lives of a federal employee’s eligible family members — not the employee themselves.

Option C sometimes gets overlooked in FEGLI discussions because it doesn’t directly insure the person earning the federal paycheck. But for employees with spouses or dependent children, it can provide meaningful coverage during the working years. At younger ages, the cost is relatively modest. The coverage may also fill gaps in a family’s overall life insurance picture.

The program is administered by OPM in partnership with Metropolitan Life Insurance Company (MetLife). Detailed program information is available at OPM.gov’s FEGLI page.

How Much Does Option C Cover?

Each multiple of Option C provides:

• $5,000 in life insurance on an eligible spouse
• $2,500 in life insurance per eligible dependent child under age 22 (or age 22+ if a full-time student)

An employee who elects 5 multiples has $25,000 in spouse coverage and $12,500 on each qualifying dependent child. Note that the $2,500 per child per multiple applies to each eligible child separately. A family with three children and 5 multiples has $12,500 on each child — not $12,500 split among them.

These amounts are fixed. Unlike FEGLI Basic, Option C has no accidental death and dismemberment (AD&D) component. The benefit is a standard life insurance payout on the covered family member’s death.

What Does Option C Cost?

Federal employees pay the full cost of Option C premiums. The government does not contribute to Optional insurance costs. Premiums are set per multiple on an age-banded schedule. They increase as the employee moves into older age bands.

Current biweekly premium rates by age band are published at OPM.gov’s FEGLI reference materials page. As a general pattern, premiums begin relatively low for employees under 35. They increase meaningfully in each successive five-year age band. The most significant jumps occur in the 45+ age groups.

An employee electing 5 multiples in their 50s pays noticeably more per biweekly period than the same election made at age 35. One useful exercise for employees approaching retirement is to project what Option C will cost under both the reducing and no-reduction scenarios — and compare that to the actual coverage value at those ages.

What Happens to Option C When You Retire?

When a federal employee retires, Option C can continue under the same election structure as Option B. Retirees make an irrevocable election at retirement about how coverage behaves after age 65:

• Full Reduction: Coverage reduces by 2% per month starting the month after the retiree turns 65, until coverage reaches zero. Premiums continue until coverage runs out. This option costs less in retirement.
• No Reduction: Coverage stays at the full elected amount indefinitely. Premiums continue at a higher rate. This option preserves the face value of the coverage.

There is no partial reduction option for Option C, unlike Option B. The election is permanent and cannot be changed after retirement.

For an in-depth look at how the reduction schedule works in retirement, see FEGLI Option B in Retirement: Full Reduction vs. No Reduction Cost Comparison. For the broader picture of FEGLI changes at retirement, see FEGLI After Retirement: How Your Life Insurance Coverage Changes When You Leave Federal Service.

When Can Federal Employees Enroll in or Change Option C?

Option C elections are available during these windows:

• When first becoming eligible for FEGLI (typically within 60 days of a new appointment)
• During a FEGLI Open Season (held infrequently — only a few times in the program’s history)
• Following a qualifying life event such as marriage, birth or adoption of a child, death of a covered family member, or loss of other group life insurance coverage

Outside of these windows, changes to Optional insurance are generally not permitted. Employees who miss their initial enrollment window and miss subsequent qualifying events may face a long wait for the next Open Season. This is a consideration for newly hired federal employees evaluating their initial benefits elections.

For employees considering converting FEGLI coverage to private insurance at separation, see FEGLI Conversion to Private Whole Life: The 31-Day Window You Can’t Afford to Miss.

Frequently Asked Questions

Does Option C cover a same-sex spouse?
Yes. OPM has confirmed that FEGLI Option C applies to same-sex spouses. An eligible spouse is a legally married spouse under applicable law, regardless of gender.

Does Option C cover domestic partners or unmarried partners?
No. As currently structured, FEGLI Option C covers only a legally married spouse and eligible dependent children. Domestic partners are not eligible for Option C coverage.

If my spouse has their own life insurance through their employer, do I still need Option C?
That depends on how much total coverage the family has, the relative cost of the coverage, and the family’s specific financial picture. Option C is one component of a broader life insurance strategy. Some families find it useful supplemental coverage. Others may have sufficient coverage elsewhere.

What happens to my Option C if my spouse dies before I retire?
If your covered spouse dies, Option C coverage on that spouse ends. Coverage on any remaining eligible dependent children continues at the same per-child amount.

Is Option C affected by FEGLI Open Enrollments announced by OPM?
OPM occasionally holds FEGLI Open Seasons. These allow employees to elect or increase Optional insurance without providing evidence of insurability. If a future Open Season is announced, employees who missed their initial enrollment window could potentially elect Option C at that time. Current announcements are at OPM.gov.

Can I cancel Option C if I decide I no longer need it?
Yes. Federal employees can cancel any Optional insurance at any time. Reinstating it later generally requires an Open Season or qualifying life event. Retirees who cancel Optional insurance typically cannot reinstate it.

Understanding how FEGLI Option C fits into your overall retirement picture is one topic covered in free Fed Pilot workshops for federal employees.