Most Federal Employees don't look at what Option B costs after retirement until the bill shows up. Here are the actual numbers from OPM's FEGLI calculator.

The example:
$100K salary, Option B at 5x = $500,000 of coverage. Retire at 60 and elect No Reduction to keep all of it.

• Age 60–64: $433.50/mo
• Age 65–69: $520/mo
• Age 70–74: $931.50/mo
• Age 75–79: $1,950/mo
• Age 80+: $3,120/mo ($37,440/yr)

While you're working, that same coverage runs about $90 per pay period at 55 and $200 per pay period at 60. The big jump comes after you retire, when the premiums keep climbing every 5 years.

Your options at retirement:

1. Reduce or drop Option B. If the kids are grown, the house is paid off, and your spouse is covered by survivor benefits, you may not need $500K of life insurance at 75.
2. Keep Basic. It's priced the same regardless of age, and with the 75% reduction it's free after 65. It's the best value in FEGLI for many people.
3. Replace Option B with private level term if you still need coverage. Level term locks your premium for 10, 20, or 30 years instead of raising it every 5 years. For a healthy 60-year-old, that can cost a fraction of what Option B costs in your 70s but the costs ultimately depends on approval, health, and underwriting.

Where term doesn't make sense:

• It's medically underwritten and FEGLI isn't. If your health has changed, FEGLI may be your best option.
• It has an end date. A 20-year term bought at 60 ends at 80. If you need coverage for life, look at other options.
• It gets more expensive the longer you wait.

The one rule: never cancel FEGLI until your replacement coverage is approved and in force. Once you drop Option B in retirement, you can't get it back.

FEGLI isn't bad, and term isn't always better. The point is to know your numbers before you're locked in.

If you want your own numbers run side by side, we do free 30-minute FEGLI reviews: https://retire.independencebenefits.com/fegli

Otherwise, drop your questions below. Happy to help either way.

I have been getting the same questions about FEGLI in here pretty regularly so I finally sat down and made a proper walkthrough. Three videos total:

1. FEGLI in retirement – how coverage works once you separate, what it costs, and what most people get wrong about keeping it long term
2. Option A – the $10k flat coverage. Seems simple but the premium age bands make it a different conversation depending on where you are in your career
3. Option B – the one that trips people up the most. Multiple of salary, age-based premiums that keep climbing, and a decision point most people hit somewhere in their 60s they weren't expecting

Threw them in a playlist if you want to go in order. Or just jump to whichever one is actually relevant to your situation right now.

▶️ https://www.youtube.com/playlist?list=PLbBJ06mUnNNUbh1TUGoft67R942FQiEJl

Happy to answer questions below.