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Review the new 2014 Federal Employees' Group Life Insurance (FEGLI) Handbook
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No. There are no waivers of the five year/all opportunity rule for continuing FEGLI life insurance coverage into retirement. There are no exceptions to the "no waiver" rule — it does not matter whether you retire on disability, accept a voluntary incentive payment, etc. The only way to continue coverage into retirement is to meet the five year/all opportunity rule. Yes, this is different from the health benefits program which does allow for waivers under certain circumstances.
For more information about retiring with FEGLI life insurance, see the FEGLI Handbook.
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