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, the issue is governed by federal law, not state insurance rules. FEGLI denials are common and often result from administrative errors, outdated beneficiary designations, or strict federal regulations that do not apply to private life insurance policies. Many families are shocked to learn that a federal employee paid premiums for years, yet benefits are denied 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 federal life insurance denials and personally manages each FEGLI case to ensure federal requirements 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 optional coverage levels that must be properly elected, maintained, and documented throughout employment and into retirement.
Unlike private life insurance, FEGLI is governed entirely by federal statutes and regulations. State insurance laws, bad faith statutes, and equitable doctrines generally do not apply. Claims are administered through the Office of Federal Employees’ Group Life Insurance, and disputes are resolved under federal standards.
Beneficiary designation is one of the most critical issues in FEGLI claims. Federal law gives employees broad authority to name beneficiaries, and the designation on file usually controls payment even if it conflicts with a will, divorce agreement, or family expectations. Many denials arise when beneficiary records are missing, outdated, or mishandled by the employing agency.
Why FEGLI Life Insurance Claims Are Denied
Most FEGLI denials stem from administrative or documentation issues rather than intentional wrongdoing. Insurers frequently deny claims based on outdated beneficiary forms, errors in coverage elections, or disputes about whether coverage continued after retirement or separation from service.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 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 to denials that should never have occurred.
Many FEGLI denials are legally challengeable when employment records, election forms, and agency duties are reviewed carefully.
Common Reasons FEGLI Claims Are Denied
Denied FEGLI claims often involve one or more of the following issues:
• Outdated or missing beneficiary designations
• Failure to properly elect optional coverage
• Coverage termination after retirement or separation
• Failure to convert coverage when required
• Premium payment disputes
• Errors on SF 2817 or related election forms
• Employer reporting errors at the time of death
• Misinterpretation of federal eligibility rules
• Coverage misunderstandings involving spouses or family members
• Administrative processing failures by OFEGLI
Each denial turns on federal regulations and the accuracy of agency records.
How We Challenge Denied FEGLI Claims
FEGLI claims require a focused federal compliance analysis. We obtain the complete claims file from OFEGLI, review employment and retirement records, analyze coverage elections and beneficiary designations, and identify administrative or procedural errors.
We prepare appeals grounded in federal statutes, regulations, and agency obligations. When necessary, we file lawsuits in federal court to enforce payment of FEGLI benefits.
Many denials are overturned once agencies are required to correct recordkeeping errors or comply with federal rules.
Behind the Scenes How FEGLI Denials Are Actually Resolved
Most FEGLI disputes are resolved through administrative correction rather than prolonged litigation. Success often depends on identifying where agency records conflict with election forms, payroll deductions, or retirement documentation.
FEGLI cases commonly resolve through:
• Administrative appeals correcting beneficiary or election records
• Agency acknowledgment of reporting or processing errors
• Enforcement of federal coverage continuation rules
• Federal court actions compelling payment under governing regulations
Because state law remedies are unavailable, precision and documentation are essential.
What To Do After a Denied FEGLI Claim
If your FEGLI claim has been denied, immediate and careful action is critical.
You should request the full denial letter and claims file from OFEGLI, obtain employment, retirement, and coverage election records, review beneficiary designations closely, avoid submitting a self prepared appeal, and contact an attorney experienced in FEGLI disputes as soon as possible.
Federal deadlines are strict, and errors during the appeal process can permanently bar recovery even when benefits are owed.
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
Frequently Asked Questions About Denied FEGLI Claims
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FEGLI (Federal Employees' Group Life Insurance) is group life insurance coverage offered to U.S. federal employees and retirees, managed through OFEGLI.
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FEGLI claims are administered by OFEGLI, the Office of Federal Employees' Group Life Insurance, not by the employing federal agency.
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Yes. You have the right to appeal a denial by requesting reconsideration, administrative review, and, if needed, filing a lawsuit in federal court.
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Common reasons include outdated beneficiary designations, coverage lapses after separation, and election form disputes.
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Deadlines vary, but appeals must usually be filed within 30 to 60 days of denial notice.
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If no valid designation exists, FEGLI proceeds are paid according to statutory order: spouse, then children, then parents, etc.
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Yes. Retirees must elect to continue FEGLI coverage or risk losing benefits if proper forms are not completed.
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For basic FEGLI, no premiums are needed after age 65. For optional coverage, premiums may continue unless waived or converted.
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No. Divorce does not automatically revoke a FEGLI beneficiary designation — it must be changed formally to be effective.
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Yes. Coverage can lapse if premiums are not paid properly, especially after employment changes or retirement.
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Yes, but only if optional accidental death coverage (Option A) was elected by the employee.
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Yes. Beneficiaries can file suit in federal court if appeals fail.
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No. FEGLI is governed by federal law under Title 5 of the U.S. Code, not by ERISA.
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Errors by OFEGLI administrators can be challenged during appeals or in court.
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Generally, no. Life insurance proceeds under FEGLI are not taxable to beneficiaries under current federal law.
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Yes. If multiple parties claim benefits, OFEGLI may delay payment until legal resolution or court orders.
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If the paperwork does not show valid election, optional coverage claims may be denied, but administrative errors can sometimes be corrected.
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Yes. Attorneys can pressure OFEGLI to act, correct administrative errors, and litigate if necessary to enforce beneficiary rights.
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You need the original policy documents, SF-2823 (beneficiary designation), denial letter, claims file, and proof of relationship to the insured.
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The Right Choice for Your Claim
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“Apparently, there were so-called inconsistencies on the application. The insurer used that as an excuse to avoid paying. Thankfully, Lassen Law stepped in and proved everything had been disclosed accurately. Claim paid.”- Rebecca M.
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With over two decades of exclusive focus on life insurance litigation, we’ve helped thousands of families recover wrongfully denied benefits. Our reputation for fast, strategic resolutions has made us a trusted national resource for complex claim disputes.
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