When you sign up for the federal employees’ group life insurance program or FEGLI, whether you only have the Basic cover or include Options A and B, you must ensure that your plan supports the welfare of your family or other dear ones after you pass away. Designating FEGLI beneficiaries ensures that the benefits go to the intended individuals or entities.
Standard Order of Precedence for Distribution of Benefits
If you don’t name any beneficiaries on your FEGLI policy, a standard order of precedence will dictate the distribution of benefits as follows:
Your Designated Beneficiary
Top priority is given to the persons or entities you list in your FEGLI Designation of Benefits form. It can be one beneficiary or more, such as your spouse, children, other relatives, or estate.
Your Widow or Widower
If you pass away without assigning any valid beneficiary, your widow or widower will automatically receive your FEGLI benefits.
Without any named beneficiary and surviving spouse/partner, FEGLI benefits go to the child or children of the deceased in equal proportions. If any of your children are deceased, their share is paid to their descendants.
If both the parents are alive, they’ll receive the benefits equally. In the case of one surviving parent, they’ll get the entire amount.
The Estate Administrator
Priority number five is given to your estate’s duly designated administrator or executor.
If none of the conditions 1 through 5 are valid when you die, your FEGLI benefits will go to your next-of-kin. State laws where you lived at the time of death will dictate the distribution of the payments under this provision.
You should always assign your FEGLI beneficiaries if you don’t wish this order of precedence to take effect.
When a Named Beneficiary Dies
If a named beneficiary dies before you, their share of federal employees group life insurance benefits is distributed equally to the surviving beneficiaries or wholly to any sole survivor. The FEGLI order of precedence is followed if all beneficiaries die before you.
Court Interventions in Special Cases
In most cases, a court order overrides the standard order of precedence and orders that FEGLI benefits be distributed differently. This often occurs when there’s been a legal separation, divorce, or annulment. Benefits can also be distributed voluntarily for purposes such as estate planning.
Option C Beneficiary
Option C is an optional family insurance plan you can add to your basic FEGLI coverage to cover your spouse or any eligible children. You’re the sole beneficiary of this option and can’t designate another under the law. If you die after a covered family member dies, the payment goes to the person entitled to your Basic life insurance benefits before receiving the death benefit.
Invest in Your Loved One’s Financial Future Now
As a parent or spouse with a family or loved ones who depend on you for their financial well-being, joining the federal employees’ group life insurance program is advisable. This financial safety net guarantees that your family will be financially secure for several years after you pass away. Contact us at Premier Protection for an affordable FEGLI plan!
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