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Frequently Asked Questions Insurance

Life

  • Living Benefits payments received on or after January 1, 1997, are not subject to Federal income tax. However, some states have laws, regulations, or rulings concerning the taxability of Living Benefits (also called accelerated death benefits). You should consult a tax advisor or your State's tax department for specific information concerning State income tax laws.

    Qualified payments from viatical settlement firms received on or after January 1, 1997 are also not subject to Federal income tax provided the companies meet certain tax exemption qualifications.

    If you are considering assigning your insurance to a viatical settlement firm, you should consult a tax advisor to determine if you and the viatical settlement firm meet the tax exemption qualification standards.

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  • It takes the Office of Federal Employees' Group Life Insurance (OFEGLI) an average of one week to process an election to enroll or increase coverage by getting a physical. If more than one week has passed since your doctor sent your request to OFEGLI and your human resources office has not yet received a decision, you can check on the status by calling OFEGLI at 1-800-633-4542.
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  • The Office of Federal Employees' Group Life Insurance pays interest on claims from the date of the insured's death to the date of the payment. OFEGLI pays a maximum of two years worth of interest, even if the time from date of death to date of payment is over two years.
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  • Yes, you as the insured, can cancel coverage even if there is a court order on file.
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  • If you are terminally ill, you can assign your FEGLI coverage to a viatical settlement firm in exchange for cash. Some viatical firms also accept assignments if you are chronically ill.
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  • No. When you receive a partial Living Benefit, the amount of your remaining Basic insurance is frozen. It does not increase due to a salary increase, nor does it decrease due to a salary reduction. If you receive a full Living Benefit, your remaining Basic Insurance Amount equals zero, and this also is unchanged due to changes in salary.
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  • No. Someone with a power of attorney cannot sign a Designation of Beneficiary form on behalf of an insured federal employee or annuitant.
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  • Yes, Public Law 110-417, the Duncan Hunter National Defense Authorization Act allows new opportunities for certain employees. The new election applies if you are a civilian employee in the Department of Defense eligible for FEGLI who is designated as "emergency essential" under section 1580 of Title 10. You may elect Basic, Option A and Option B (up to the maximum of 5 multiples). You must make the election on the SF 2817  [278 KB] (or its electronic equivalent) within 60 days of the date of the notification of the designation as an emergency essential employee. Contact your employing agency human resources office for more information. See more details in BAL 08-204  [45 KB].
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  • Employees:

    Submit the designation form to your human resources office.  If you do not know how to contact your human resources office, you can ask your supervisor or your Agency Benefits Officer.

    Annuitants:

    Submit the designation form to: Office of Personnel Management, Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045.

    Compensationers:

    If you receive benefits from the Department of Labor, Office of Workers Compensation Programs and you've been receiving these benefits for less than 12 months and you are still on the agency's rolls as an employee, submit the designation form to your human resources office.

    If you are on compensation and are separated from your agency or have been receiving compensation for 12 months or more, submit the designation form to OPM's Retirement Office at the address on page 3.


    Important: The appropriate office must receive the Designation of Beneficiary form before your death in order for the Office of Federal Employees' Group Life Insurance (OFEGLI) to pay the benefits. If you do not file it with the proper office, OFEGLI will pay benefits in accordance with the next prior designation on file or under the order of precedence, if there is no designation.

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  • Write "See Attached" in Part B of the form. Use a blank sheet. Print your name, date of birth and social security number at the top of the attachment. List the information required in Part B for each beneficiary. Sign the form and attachment. Have the same two people witness both of your signatures and sign the form and attachment.
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