Denied FEGLI (Federal Employees' Group Life Insurance) Claims

If your Federal Employees’ Group Life Insurance (FEGLI) claim was denied, you are not alone. FEGLI claims often involve confusing rules about eligibility, coverage elections, and beneficiary designations. At Lassen Law Firm, we focus exclusively on helping beneficiaries overturn denied life insurance claims nationwide, including complex FEGLI disputes. Christian Lassen, Esq., a life insurance attorney with over 20 years of experience, personally handles each case to protect your rights and maximize recovery.

If a FEGLI claim is denied, the beneficiary has the right to appeal the decision and, if necessary, file suit in federal court. FEGLI denials must be based on clear and documented reasons under federal regulations.

What Is FEGLI (Federal Employees' Group Life Insurance)?

FEGLI is the largest group life insurance program in the world, providing basic and optional coverage to millions of federal employees and retirees. Managed by the Office of Federal Employees' Group Life Insurance (OFEGLI) and regulated by the federal government, FEGLI benefits are intended to provide financial security to designated beneficiaries upon the insured’s death.

Unlike private life insurance, FEGLI is governed by strict federal laws and regulations, not state insurance laws.

Why FEGLI Claims Get Denied

FEGLI claims are often denied because of administrative errors, missing or outdated beneficiary designations, disputes about optional coverage elections, unpaid premium issues, or strict federal regulations about eligibility.
Sometimes, claims are wrongfully denied based on paperwork mistakes or misinterpretations of FEGLI rules.

Legal help is often needed to challenge FEGLI denials effectively.

How We Help With Denied FEGLI Claims

At Lassen Law Firm, we understand the unique rules governing FEGLI claims. We obtain the entire claims file from OFEGLI, identify procedural errors, and aggressively appeal or litigate denied claims. Our firm has successfully handled numerous FEGLI denials caused by paperwork errors, eligibility disputes, and misapplied beneficiary rules.

For example, we recently recovered $200,000 for a surviving spouse after FEGLI wrongly denied a claim based on an outdated beneficiary form. By uncovering errors in OFEGLI’s processing, we secured full payment.

Common Reasons for FEGLI Denials

  • Outdated or missing beneficiary designation

  • Failure to elect optional coverage properly

  • Death occurring after coverage ended due to retirement

  • Failure to convert coverage after separation from service

  • Premium non-payment disputes

  • Misinterpretation of election forms (SF-2817 issues)

  • Employer reporting errors at time of death

  • Spouse or family coverage misunderstandings

  • Death ruled outside covered employment period

  • Contestability issues based on enrollment documentation

What to Do After a Denied FEGLI Claim

If your FEGLI claim has been denied:

  1. Request the full denial letter and claims file from OFEGLI.

  2. Review the denial reasons and associated documents carefully.

  3. Do not submit a self-prepared appeal without legal advice.

  4. Contact an attorney experienced in federal life insurance claim disputes.

  5. Act promptly — strict federal deadlines govern appeals and lawsuits.

Federal deadlines are unforgiving. Immediate legal action protects your right to recover benefits.

Frequently Asked Questions About Denied FEGLI Claims

What is FEGLI?

FEGLI (Federal Employees' Group Life Insurance) is group life insurance coverage offered to U.S. federal employees and retirees, managed through OFEGLI.

Who manages FEGLI claims?

FEGLI claims are administered by OFEGLI, the Office of Federal Employees' Group Life Insurance, not by the employing federal agency.

Can I appeal a denied FEGLI claim?

Yes. You have the right to appeal a denial by requesting reconsideration, administrative review, and, if needed, filing a lawsuit in federal court.

What are common reasons FEGLI claims are denied?

Common reasons include outdated beneficiary designations, coverage lapses after separation, and election form disputes.

How long do I have to appeal a FEGLI denial?

Deadlines vary, but appeals must usually be filed within 30 to 60 days of denial notice.

What if my loved one never filled out a beneficiary form?

If no valid designation exists, FEGLI proceeds are paid according to statutory order: spouse, then children, then parents, etc.

Can retirement affect FEGLI coverage?

Yes. Retirees must elect to continue FEGLI coverage or risk losing benefits if proper forms are not completed.

Are premiums required after retirement for FEGLI?

For basic FEGLI, no premiums are needed after age 65. For optional coverage, premiums may continue unless waived or converted.

Does divorce impact FEGLI beneficiary designations?

No. Divorce does not automatically revoke a FEGLI beneficiary designation — it must be changed formally to be effective.

Can my FEGLI coverage lapse without my knowledge?

Yes. Coverage can lapse if premiums are not paid properly, especially after employment changes or retirement.

Does FEGLI cover accidental deaths?

Yes, but only if optional accidental death coverage (Option A) was elected by the employee.

Can I sue if FEGLI wrongfully denies a claim?

Yes. Beneficiaries can file suit in federal court if appeals fail.

Does ERISA apply to FEGLI claims?

No. FEGLI is governed by federal law under Title 5 of the U.S. Code, not by ERISA.

What if OFEGLI made a mistake in processing the claim?

Errors by OFEGLI administrators can be challenged during appeals or in court.

Are FEGLI death benefits taxable?

Generally, no. Life insurance proceeds under FEGLI are not taxable to beneficiaries under current federal law.

Can a beneficiary dispute be filed if more than one person claims?

Yes. If multiple parties claim benefits, OFEGLI may delay payment until legal resolution or court orders.

What happens if optional coverage was not properly elected?

If the paperwork does not show valid election, optional coverage claims may be denied, but administrative errors can sometimes be corrected.

Can an attorney speed up a FEGLI dispute?

Yes. Attorneys can pressure OFEGLI to act, correct administrative errors, and litigate if necessary to enforce beneficiary rights.

What documents do I need for a FEGLI appeal?

You need the original policy documents, SF-2823 (beneficiary designation), denial letter, claims file, and proof of relationship to the insured.