How much does FEGLI Option B cost by age?

FEGLI Option B costs $0.02 biweekly per $1,000 of coverage for employees under 35, rising to $0.11 at ages 50-54, $0.44 at ages 60-64, and $2.64 at age 80 and older. For $300,000 of coverage (3x a $100,000 salary), that means $858/year at age 50, $3,432/year at age 60, and $20,592/year at age 80. These rates are set by OPM and apply to all federal employees regardless of health status.

Is FEGLI worth it after retirement?

FEGLI Basic is worth keeping into retirement in almost every case. With the 75% Reduction election, Basic becomes completely free after age 65 and provides a permanent death benefit equal to 25% of your original coverage amount. FEGLI Option B in retirement is more complicated — if you elect No Reduction, you continue paying escalating age-band premiums that reach $0.54 biweekly per $1,000 at ages 65-69. Most financial planners recommend electing Full Reduction for Option B at retirement, which phases coverage to zero at no cost, rather than paying for increasingly expensive coverage you may not need.

FEGLI vs private term life insurance: which is better?

Private term life insurance typically wins on cost for healthy federal employees between roughly ages 40 and 55. A 50-year-old in preferred health can get $300,000 of 20-year level-term coverage for approximately $46/month ($552/year), while FEGLI Option B at age 50 costs $858/year for the same coverage — and will jump to $1,560 at age 55 and $3,432 at age 60. FEGLI wins for employees with pre-existing health conditions (it requires no medical exam), smokers (private insurers charge 200-300% more for smokers), and as the guaranteed-issue fallback if private coverage is unavailable.

Does FEGLI get more expensive as you get older?

Yes. FEGLI Optional coverage (Options A, B, and C) uses 5-year age bands, and premiums increase at each band. Option B goes from $0.02 per $1,000 biweekly under age 35, to $0.11 at 50-54, to $0.44 at 60-64, to $2.64 at 80 and older — a 132-fold increase over the career. The jump from the 55-59 band to the 60-64 band alone adds 120% to the annual premium for the same coverage. Basic insurance premiums do not change with age for active employees; the $0.16 biweekly per $1,000 rate is flat regardless of age.

Can I keep FEGLI when I retire from federal service?

Yes, if you meet two conditions: you must retire on an immediate annuity (not a deferred annuity) and you must have been continuously enrolled in FEGLI for at least the 5 years immediately before your retirement date. If you cancel FEGLI in the last 5 years of your career to save money, you permanently lose the right to carry it into retirement. At retirement, you make a one-time election for Basic (75% Reduction, 50% Reduction, or No Reduction) and a separate election for each Optional coverage.

FEGLI · Life Insurance

FEGLI vs Term Life Crossover Calculator

Project your FEGLI Option B premiums across every age band — and find the exact age where private level-term insurance becomes cheaper. For a 50-year-old with $300K of Option B, that crossover may already have passed.

Reviewed by Jonathan D., 20-year federal employee · Formulas verified against OPM.gov · Updated June 2026

The number that changes everything

A 50-year-old carrying $300,000 in Option B pays $858/year today. At 55 that climbs to $1,560. At 60 it hits $3,432. A 20-year level-term policy at age 50 costs roughly $552/year — and never increases. FedTools 2026 analysis: switching to level-term at 50 saves an estimated $39,300 in cumulative premiums by age 70.

OPM FEGLI rates last verified: June 28, 2026·No rate change announced through June 2026 (FR Doc. 2021-19475)

See if FEGLI Option B still makes sense for your situation.

Your Information

Current Age

Ages 25–79. Your current age determines your FEGLI rate band.

Annual Salary

Option B Multiple

Coverage: $300,000 at age 50 → $0.11/biweekly per $1,000 · current band: 50–54

Option A enrolled ($10,000 flat coverage)

Current rate: $1.00/biweekly per $1,000 · band: 50–54

Option C Multiples

Private Term Comparison

Use estimated term rate (illustrative)

Market estimate for a 20-year level-term based on your age and health class. Male non-smoker basis; females ~20% lower.

Health Classification (for estimate)

Estimated term premium: $552.00/yr ($46/mo) for $300,000 coverage.
Market estimate only. Get a binding quote before changing coverage.

Term Policy Length (years)

Important: Never cancel FEGLI coverage until a private policy is approved and the first premium is paid. FEGLI is guaranteed issue — no medical exam required. If you have pre-existing conditions or are a smoker, private rates may be higher than these estimates.

Results update live as you change inputs

Crossover Result

Already crossed — FEGLI Option B costs more NOW

Based on these numbers, FEGLI Option B costs 55% more per year than comparable level-term coverage. If you can qualify for private insurance at Preferred health rates, switching could save you an estimated $24,630 by age 65.

Panel A — Current FEGLI Cost

What you pay today

Total Biweekly Withholding

$50.32

$1,308/year · all elected options

Basic (BIA)$102,000 BIA · $424/yr · ⅓ gov't subsidy$16.32

Option A ($10,000)$26/yr · no gov't subsidy$1.00

Option B (3× / $300,000)$858/yr · no gov't subsidy$33.00

Basic recommendation: Keep Basic in almost all cases. The 75% Reduction option at retirement becomes free after age 65.

Panel B — Option B Age-Band Climb

What you'll pay as you age

FEGLI Option B for $300,000 coverage · rates step up every 5 years

Age 50–54← now$858/yr

Age 55–59$1,560/yr

Age 60–64$3,432/yr

Age 65–69$4,212/yr

Age 70–74$7,488/yr

Age 75–79$14,040/yr

Level term (locked rate): $552/yrESTIMATE — never increases for the 20-year policy term

FedTools 2026 analysis: switching to level-term at age 50 could save $24,630 in cumulative premiums by age 65.

FedTools 2026 Analysis

Year-by-year cost comparison

FEGLI Option B vs 20-year level-term · $300,000 coverage · starting age 50 · term rate is market estimate

FEGLI vs term life year-by-year cost comparison
Age	Band	FEGLI Opt B / yr	Total FEGLI / yr	Term / yr	Annual Diff	Cum. Savings
50	50–54	$858	$1,308	$552	+$306	Save $306
51	50–54	$858	$1,308	$552	+$306	Save $612
52	50–54	$858	$1,308	$552	+$306	Save $918
53	50–54	$858	$1,308	$552	+$306	Save $1,224
54	50–54	$858	$1,308	$552	+$306	Save $1,530
55	55–59	$1,560	$2,031	$552	+$1,008	Save $2,538
56	55–59	$1,560	$2,031	$552	+$1,008	Save $3,546
57	55–59	$1,560	$2,031	$552	+$1,008	Save $4,554
58	55–59	$1,560	$2,031	$552	+$1,008	Save $5,562
59	55–59	$1,560	$2,031	$552	+$1,008	Save $6,570

When FEGLI wins — read this before making any changes:

FEGLI is guaranteed issue. If you have pre-existing conditions, diabetes, heart disease, or cancer history, private insurance may be unavailable or priced much higher. Never cancel FEGLI before being approved for a private policy.
Smokers pay the same FEGLI rate as non-smokers. Private insurers charge smokers 200–300% more — FEGLI is a better deal for tobacco users.
Retirees: Annuitant rates may differ from active-employee rates shown here. Use OPM's official FEGLI Calculator for post-retirement modeling.

Retirement continuity rules

5-Year Enrollment Rule

You must have been continuously enrolled in FEGLI for at least the 5 years immediately before retiring on an immediate annuity to carry any coverage into retirement.

Basic Reduction Election (one-time)

At retirement you make an irrevocable election: 75% Reduction (free after 65, coverage drops to 25%), 50% Reduction, or No Reduction. The 75% Reduction is free for most retirees — you stop paying premiums at 65.

Option B at Retirement

Full Reduction = coverage phases to zero over ~50 months after 65, at no cost. No Reduction = you keep paying active-employee age-band premiums — $0.54/biweekly per $1,000 at ages 65-69.

Conversion Right (if leaving before retirement)

If you leave federal service non-retirement, you have 31 days to convert FEGLI to a private policy without a medical exam. Converted policies are whole life (expensive) — compare carefully.

FEGLI Option B rates by age band (verified June 2026)

All rates are the employee share, biweekly, per $1,000 of coverage. No government subsidy for Option B. The $300,000 column uses 3× a $100,000 salary as the worked example.

FEGLI Option B biweekly rates by age band, verified June 2026
Age Band	Biweekly / $1K	Annual / $1K	$300K annual	vs. under-35
Under 35	$0.02	$0.52	$156	1×
35–39	$0.03	$0.78	$234	1.5×
40–44	$0.04	$1.04	$312	2×
45–49	$0.07	$1.82	$546	3.5×
50–54	$0.11	$2.86	$858	5.5×
55–59	$0.20	$5.20	$1,560	10×
60–64	$0.44	$11.44	$3,432	22×
65–69	$0.54	$14.04	$4,212	27×
70–74	$0.96	$24.96	$7,488	48×
75–79	$1.80	$46.80	$14,040	90×
80+	$2.64	$68.64	$20,592	132×

Source: OPM Benefits Administration Letter 21-204 · Federal Register FR Doc. 2021-19475 (effective October 1, 2021). Rates last verified against the OPM FEGLI calculator on June 28, 2026.

Basic insurance: how the BIA and employee share work

Basic Insurance Amount (BIA) = your salary rounded up to the next whole $1,000, plus $2,000. A $100,000 salary produces a $102,000 BIA. The employee pays $0.16 biweekly per $1,000 of BIA — the government picks up $0.08 (one-third of the total $0.24 per $1,000 premium). Basic is the only FEGLI option with a government subsidy.

BIA = ceil($100,000 / $1,000) × $1,000 + $2,000 = $102,000
Employee biweekly = 102 × $0.16 = $16.32
Employee annual = $16.32 × 26 = $424.32
Basic does NOT age-band — the $0.16 rate is flat for all active employees regardless of age.

Recommendation: Keep Basic in almost all cases. It is government-subsidized and, at retirement, the 75% Reduction option causes it to become free after age 65 while preserving 25% of the original death benefit permanently. There is no private analog for this feature.

The crossover: why it matters and when to act

Private level-term insurance locks in a fixed annual premium for the policy term — typically 10, 20, or 30 years — regardless of your age. FEGLI Option B resets upward every five years. The crossover age is the first year your FEGLI Option B annual cost exceeds what a comparable level-term policy would charge you.

FedTools 2026 worked example: Age 50 · salary $100,000 · Option B 3× = $300,000 coverage. FEGLI Option B: $858/yr now → $1,560 at 55 → $3,432 at 60 → $4,212 at 65. 20-year level-term (preferred health, male): ~$552/yr — flat through age 70. Cumulative FEGLI Option B (ages 50-69): $50,310. Cumulative term: $11,040. Switching saves ~$39,300.

The key nuance: you must qualify for private insurance to make the switch worthwhile. FEGLI is guaranteed issue — it accepts everyone regardless of health history. If you have a condition that makes private underwriting difficult, FEGLI's crossover cost may be worth paying for the security of coverage.

Related tools & guides

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SBP Calculator

Military federal employees: see how your Survivor Benefit Plan election interacts with FEGLI and life insurance planning.

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FEGLI vs Private Life Insurance Guide

In-depth guide comparing FEGLI and private term coverage across the career and into retirement.

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