FEGLI Option A Premiums: The Full Age-Band Table and the Age 60 Jump
The short answer: FEGLI Option A premiums are set by age band, not by health. An annuitant pays $0.43 a month under age 35 and $13.00 a month at ages 60 through 64 for the same $10,000 of coverage. At 65 the premium stops and the coverage begins shrinking.
What are the key takeaways?
- Option A is a flat $10,000 of coverage. The premium is quoted for the whole amount, not per $1,000 (OPM).
- Rates move in eight age bands and roughly 30x from the lowest band to the highest.
- The last paying band, 60–64, costs $13.00 a month — $156 a year.
- From the month after your 65th birthday the premium is free, and the coverage reduces 2% a month until it reaches $2,500.
How much are FEGLI Option A premiums at each age?
These are OPM’s current annuitant rates for Option A, effective since the first pay period on or after October 1, 2021. The same schedule applies to employees, quoted biweekly.
| Age band | Monthly premium (for $10,000) |
|---|---|
| Under 35 | $0.43 |
| 35–39 | $0.43 |
| 40–44 | $0.65 |
| 45–49 | $1.30 |
| 50–54 | $2.17 |
| 55–59 | $3.90 |
| 60–64 | $13.00 |
| 65 and over | Free |
Source: OPM, FEGLI Program Information. OPM notes these rates may change in the future.
Why do FEGLI Option A premiums jump at age 60?
Option A is age-rated, which is the opposite of how FEGLI Basic works. Basic uses a composite rate — the same $0.3467 per $1,000 at 25 and at 64 — so the cost of Basic never moves as you age. Our post on the FEGLI Basic reduction at retirement covers that side.
Option A has no such smoothing. Each band is priced closer to the actual mortality cost of that band, so the increases compound late. The step from 55–59 to 60–64 is the largest single move in the table: $3.90 to $13.00, a jump of $9.10 a month, or 233%. That is the figure that surprises people, because it arrives in the five years when most federal employees are deciding what to carry into retirement.
What does Option A cost from age 60 onward?
Here is the arithmetic for someone who keeps Option A from their 60th birthday through age 64 and then into retirement:
- Ages 60 to 64: $13.00 a month x 60 months = $780 in premiums.
- From the month after the 65th birthday: premiums stop entirely.
- Coverage then reduces 2% of the original $10,000 each month — $200 a month — until it reaches 25% of face value.
- Falling from $10,000 to $2,500 takes 37.5 months, so roughly three years and two months after the reduction starts. The $2,500 then stays in force for life at no cost.
So the $780 paid across the 60–64 band buys five years at the full $10,000, a three-year glide down, and a permanent $2,500 afterward. Whether that is worth $156 a year depends on things the table cannot tell you: what Basic and Option B are already covering, whether anyone still depends on the income, and what a comparable private policy would cost at the same age. The hub post on FEGLI Option A in retirement covers the eligibility and election rules that sit around this decision.
What else do federal employees ask about Option A?
Is the $13.00 per $1,000 or for the whole $10,000?
For the whole $10,000. Option A is a fixed amount, so OPM quotes one premium. Option B and Option C are quoted per $1,000 and per multiple.
Can I stop the reduction after 65 the way I can with Basic?
No. Basic offers 75%, 50%, and No Reduction elections. Option A has one path: free coverage that reduces to $2,500.
Do the bands follow my age or my retirement date?
Your age. Moving into a new band changes the premium whether you are working or retired.
Where can I model my own numbers?
OPM’s FEGLI Calculator applies the current rates to your own coverage and shows the effect of option changes.
Where can federal employees learn more?
FEGLI is one of five moving parts that change the month you retire. Fed Pilot runs free federal retirement benefits workshops that walk through all of them together. Register for an upcoming session.
