FEGLI Option B vs. Private Term Life
The right answer depends on your health, age, goals, family needs and retirement plans.
| Feature | FEGLI Option B | Private Term Life |
|---|---|---|
| Underwriting to keep existing coverage | Generally not required to keep coverage already in force | Usually required for new coverage |
| Premium structure | Age-band based | Often level for selected term |
| Coverage amount | 1–5× annual basic pay | Policy-specific |
| Portability / retirement | Subject to FEGLI continuation and reduction rules | Policy-specific; generally independent of employment |
| Health changes after issue | Existing FEGLI may be valuable if insurability declines | Once in force, policy terms govern |
Never cancel FEGLI because a quote looks attractive. A quote is not an offer of insurance. Wait until any replacement policy has completed underwriting, been issued, accepted, paid and is in force.