Help federal employees get their FEGLI Option C Refund if they’re eligible.
Option C is one of the options in the Federal Employee Group Life Insurance (FEGLI) plan. Most professionals know it as family coverage. And few employees understand who is supposed to covered and for how long. Fewer know exactly what happens when there is no one eligible to continue the coverage for. For that reason, Option C deserves more than a line item on a benefits checklist.
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FEGLI Option C Coverage for Federal Families
Federal Employees’ Group Life Insurance (FEGLI) Option C is the family coverage component of the FEGLI program. Unlike Basic insurance or Options A and B, which cover the employee, Option C provides life insurance on their spouse and eligible dependent children. Coverage is structured in multiples: each multiple provides $5,000 of coverage for a spouse and $2,500 for each eligible dependent child, with clients able to elect one through five multiples. Premiums are based on the employee’s age bracket, not the age of the covered family members, and are deducted directly from their paycheck.
The Refund Question: What Happens When Coverage Ends?
When a federal employee is faced with separating or retiring form service, they finally evaluate their FEGLI coverage. Most of the time that is when the employee discovers they still have Option C, and the question of premiums comes into play. If the employee or retiree has still been paying for premiums for coverage of a family member despite them no longer having an eligible spouse or dependent, a refund is due for all the premiums paid after the coverage became no longer relevant. However, refunds are not automatic even if the employee cancels the FEGLI Option C coverage.
Although it is a simple process, the employee does need to take an extra step to get the refund of their Option C premiums. To learn more about what an employee needs to do and how the Command Center Services may benefit you and/or your team, schedule a call with Cassie Graves today!
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