For insurance professionals
Federal employees are underinsured.
You can fix that.
The federal insurance benefit system creates predictable protection gaps at retirement. Almost no insurance professionals are trained to identify them. That is your opening.
The FEGLI problem.
Most federal employees default into FEGLI Option B — multiples-of-salary coverage that the government makes easy to enroll in. At 5× salary, it feels like substantial protection. For younger employees, the premiums are manageable. Then they turn 45.
Option B premiums increase on a five-year schedule that accelerates sharply in middle age. By 50, Option B costs two to three times what comparable private term would cost for the same coverage amount. Most employees do not know this. Most have never been shown the comparison.
At retirement, the situation gets worse. Unless employees pay a premium to maintain their FEGLI coverage, it reduces to 25% of the pre-retirement amount over a 10-year period. An employee who retires with $500,000 in Option B coverage ends up with $125,000 — or less — if they take the standard reduction.
This creates a massive, predictable protection gap. Private term can replace Option B at retirement or before — and FEGLI's conversion privilege allows it without medical underwriting under the right conditions. Almost no insurance professional is positioned to execute this solution, because almost no insurance professional has been trained on how FEGLI actually works.
The protection gap in numbers
Option B coverage at retirement (5× $100k salary)
$500,000
Remaining coverage after standard 75% reduction
$125,000
Protection gap left unfilled
$375,000
Example based on a federal employee retiring at the standard Option B election with no premium-paid coverage maintained. Individual results vary.
Where the gaps are
Four coverage opportunities in every federal client file.
FEGLI Option B Replacement
Option B costs 2–3× more than comparable private term after age 45. Most employees are unaware. A side-by-side premium comparison often closes the case on its own.
Long-Term Care Alternatives
FLTCIP (Federal Long Term Care Insurance Program) is the default, but it is not always the best option. Private LTC and hybrid life-LTC products frequently offer better value for federal employees approaching retirement.
Life Insurance at Retirement Transition
At retirement, FEGLI Basic reduces by 75% unless employees pay to keep it — a cost most cannot afford. This is the optimal window to place private coverage. The conversion privilege requires no medical underwriting.
FEHB + Supplemental Coverage Optimization
Some FEHB plans have significant out-of-pocket exposure. Pairing a high-deductible FEHB plan with a supplemental policy can reduce overall premium cost while improving coverage. Few federal employees have seen this analysis.
The FedEd difference
Trained professionals close more cases in the federal market.
Know FEGLI inside out.
Basic, Option A, Option B, Option C — each has different cost structures, reduction schedules, and conversion rules. FedEd training gives you mastery of FEGLI mechanics so you can present alternatives with precision, not guesswork.
Understand conversion windows.
Federal employees have narrow windows to convert FEGLI to private coverage without medical underwriting — at separation, at certain life events, and at retirement. Knowing those windows lets you show up at the right moment with the right solution.
Present LTC alternatives confidently.
FLTCIP has a complex premium structure. FedEd training covers how to compare it objectively to private and hybrid LTC products so you can recommend with confidence — and document your rationale.
The gap exists. The training is here.
Learn FEGLI, FLTCIP, and federal benefit transitions so you can serve the clients no generalist is equipped to help.