Life Insurance for American Foreign Service

Life Insurance for American Foreign Service Members

American Foreign Service members—diplomats, specialists, and staff of the U.S. Department of State and related federal agencies—serve both domestically and abroad, often in challenging and high-risk environments. Protecting their families financially through life insurance is an important part of their benefits package. This article explains how life insurance coverage works for Foreign Service employees, with a focus on the Federal Employees’ Group Life Insurance (FEGLI) program, available supplemental options, and practical advice for managing these benefits during overseas assignments.

Federal Employees’ Group Life Insurance (FEGLI) for Foreign Service Members

Overview of FEGLI

FEGLI is the primary life insurance plan available to most federal employees, including Foreign Service members. It provides group term life insurance coverage at competitive group rates, administered by private underwriters but overseen by the U.S. Office of Personnel Management (OPM).

Key Features of FEGLI

• Automatic Enrollment in Basic Coverage: Eligible Foreign Service employees are automatically enrolled in Basic life insurance coverage, unless they choose to waive it. Basic insurance amount is based on the employee’s annual salary rounded up to the nearest thousand, plus $2,000, or $10,000, whichever is higher.
• Optional Coverages: Employees may elect additional coverage voluntarily within 60 days of eligibility. These optional coverages include:
  • Option A: Standard $10,000 additional insurance
  • Option B: Additional multiples of annual salary (1 to 5 times)
  • Option C: Family coverage, providing benefits for spouse and dependent children
• Premium Payments: Premiums are payroll-deducted; the government pays one-third of the Basic insurance premium cost, with employees responsible for the rest.
• Coverage Overseas: FEGLI coverage continues uninterrupted during foreign postings. The benefits apply worldwide, protecting employees no matter where they serve.
• No Cash Value: FEGLI is term life insurance; it does not accumulate cash value or savings.

Enrollment and Changes

• New Foreign Service employees are automatically enrolled in Basic coverage upon starting pay and duty status.
• Optional coverages must be actively elected; employees can also make changes during designated open seasons or due to qualifying life events (marriage, birth, deployment).
• Employees can cancel or reduce coverage at any time, but once coverage is assigned to another party, changes become limited.

Claims and Beneficiaries

• Beneficiaries receive the coverage amount upon the employee’s death.
• Claims and beneficiary designations are managed by OFEGLI, a unit of Metropolitan Life Insurance Company.

Supplemental and Private Life Insurance Options

While FEGLI provides foundational life insurance, many Foreign Service employees consider additional policies for added protection, especially due to the unique risks of foreign postings.

Supplemental FEGLI Policies

• Increased Coverage: Optional FEGLI plans allow increasing coverage up to 5 times annual salary.
• Family Coverage: Option C offers death benefits for spouses and dependent children, which FEGLI Basic does not cover.

Private/Commercial Life Insurance

• Employees may purchase private life insurance policies, often with tailored features like cash value accumulation, disability riders, or enhanced accident protection.
• Some federal embassies or agencies offer group schemes negotiated with private carriers that supplement FEGLI.
• Private policies can cover gaps such as spouse’s insurance or risks specific to hazardous duty.

Overseas Considerations

• When stationed abroad, managing private life insurance can be complex due to local regulations, underwriting challenges, and currency or tax considerations.
• The employee’s human resources or benefits office can offer guidance and referrals to brokers familiar with expatriate insurance.

Practical Guidance for Foreign Service Members and Families

Understanding Your Coverage

• Confirm your FEGLI coverage election and beneficiary designations regularly.
• Review your optional coverage amounts to ensure they match your family’s financial needs, especially with increased risks in some postings.

Managing Changes While Overseas

• Communicate promptly with your agency’s Life Insurance Officer or Benefits Administrator to report life changes or update coverage.
• Take note of enrollment windows and provisions for making changes due to qualifying events like marriage, addition of dependents, or deployment.

Beneficiary Updates

• Always keep beneficiary information current, including contingent beneficiaries.
• Overseas postings may impose additional documentation or notarization requirements for beneficiary changes.

Coordinating FEGLI with Other Benefits

• FEGLI life insurance complements other federal retirement and survivor benefits, such as:
  • Foreign Service Retirement and Disability System (FSRDS) survivor benefits
  • Thrift Savings Plan (TSP) designated beneficiaries
• Consider consulting a financial planner familiar with Foreign Service benefits to optimize overall family financial protection.

Utilizing Employee Resources

• The U.S. Office of Personnel Management (OPM) offers extensive material, including the FEGLI Handbook, forms, and contact details for claims.
• Each agency typically maintains Life Insurance Officers for counseling and assistance.
• Helplines: OFEGLI Customer Service at 1-800-633-4542 (domestic) or (212) 578-2975 (international).

Special Circumstances and Additional Support

Coverage During Hazardous Postings

• Employees assigned to high-risk or contingency operations may qualify for special life insurance election rights or enhanced benefits under laws like the Duncan Hunter National Defense Authorization Act (NDAA).
• These provisions allow special enrollment opportunities and may provide added accidental death coverage.

Survivor and Dependent Benefits

• In case of a Foreign Service member’s death, survivors may also be eligible for federal benefits beyond life insurance proceeds, including ongoing health coverage and survivor annuities.
• Proper estate and beneficiary planning is critical to ensure smooth claims processing and family financial security.

Handling Claims Abroad

• Claims are filed through OFEGLI; embassy HR and benefits personnel assist families with paperwork and coordination.
• Timely reporting and documentation are essential for prompt benefit payment.

Summary Table of FEGLI Coverage for Foreign Service Members

Coverage Type	Description	Eligibility	Coverage Amount & Notes
Basic Insurance	Automatic enrollment; salary-based term coverage	All eligible Foreign Service employees	Annual salary rounded + $2,000 or $10,000 minimum
Option A – Standard	$10,000 additional coverage	Voluntary	Elected within 60 days of eligibility
Option B – Additional Multiple	1-5 times annual salary	Voluntary	Must have Basic insurance
Option C – Family Coverage	Spouse and dependent children coverage	Voluntary	Pays lump sums on spouse/child death
Supplemental Private Insurance	Optional life, disability, or accidental coverage	Voluntary	Purchased separately outside FEGLI

Conclusion

Life insurance for American Foreign Service members is primarily centered around the FEGLI program, which offers robust, affordable, and portable coverage worldwide. Supplemental life insurance options provide additional layers of financial protection tailored to individual and family needs. Managing these benefits proactively—by understanding enrollment rules, beneficiary designations, and coordination with other federal benefits—is essential for diplomats and their families serving both at home and abroad.

Foreign Service personnel should leverage agency resources and OPM guidance to optimize their life insurance and safeguard their loved ones, ensuring peace of mind even in the most challenging international assignments.