Denied FEGLI (Federal Employees' Group Life Insurance) Claims

Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience

If your Federal Employees’ Group Life Insurance claim was denied, you are not alone. FEGLI denials are common and often stem from administrative mistakes, outdated beneficiary forms, or strict federal regulations that do not apply to private life insurance. Families are frequently shocked to learn that a federal employee paid premiums for years, yet the insurer refuses to pay benefits after death.

At Lassen Law Firm, we focus exclusively on representing beneficiaries in denied life insurance claims nationwide, including complex FEGLI disputes. Christian Lassen, Esq., has 25 years of experience handling life insurance denials and personally manages each FEGLI case to ensure federal rules are followed and benefits are paid.

Understanding FEGLI Coverage and Federal Rules

The Federal Employees’ Group Life Insurance program is the largest group life insurance plan in the world, covering millions of federal employees and retirees. FEGLI provides Basic coverage and several Optional coverage levels, which must be properly elected and maintained throughout employment and into retirement.

Unlike private life insurance, FEGLI is governed entirely by federal law and regulations. State insurance laws and bad faith statutes do not apply. Instead, claims are processed through the Office of Federal Employees’ Group Life Insurance, and disputes are resolved under federal standards.

Beneficiary designation is a central issue in FEGLI claims. Federal law gives employees the right to name any beneficiary, and that designation generally controls payment even if it conflicts with a will or family expectations. Many denials arise when beneficiary records are missing, outdated, or incorrectly processed by the employing agency.

Why FEGLI Life Insurance Claims Are Denied

FEGLI claims are most often denied due to paperwork problems rather than intentional wrongdoing by the insured. Insurers frequently deny claims based on outdated beneficiary forms, errors in coverage elections, or disputes about whether coverage continued after retirement or separation from service.

Other denials involve alleged failure to elect optional coverage, premium non payment disputes, or misinterpretation of federal forms such as SF 2817. In some cases, employers fail to report coverage correctly at the time of death, leading insurers to deny claims that should have been paid.

These denials are often legally challengeable when records are reviewed carefully.

How We Challenge Denied FEGLI Claims

At Lassen Law Firm, we approach FEGLI denials with a detailed federal compliance analysis. We obtain the full claims file from OFEGLI, review employment and retirement records, analyze beneficiary designations, and identify administrative or procedural errors.

We prepare appeals that focus on federal regulations, agency duties, and documentation failures. When necessary, we file lawsuits in federal court to enforce payment of FEGLI benefits.

In one recent case, we recovered $200,000 for a surviving spouse after FEGLI denied the claim based on an outdated beneficiary form. By uncovering processing errors and regulatory violations, we secured full payment.

Common Reasons FEGLI Claims Are Denied

• Outdated or missing beneficiary designations
• Failure to properly elect optional coverage
• Coverage ending after retirement or separation
• Failure to convert coverage when required
• Premium non payment disputes
• Errors on SF 2817 or related election forms
• Employer reporting errors at time of death
• Misinterpretation of federal eligibility rules
• Coverage misunderstandings involving spouses or family
• Administrative processing failures by OFEGLI

What To Do After a Denied FEGLI Claim

If your FEGLI claim has been denied, prompt action is critical.

1. Request the full denial letter and claims file from OFEGLI
2. Obtain employment, retirement, and coverage election records
3. Review beneficiary designations carefully
4. Avoid submitting a self prepared appeal
5. Contact an attorney experienced in FEGLI disputes immediately
6. Federal deadlines are strict, and errors during the appeal process can permanently bar recovery.

For a concise overview of FEGLI denials and immediate steps, see our Denied FEGLI Claim Fact Sheet

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Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered.  Quoted in The Wall Street Journal ( May 17, 2025).

Last reviewed: Jan 3, 2026 | Contact 800-330-2274