Why Was My FEGLI Claim Denied?

Federal Employees’ Group Life Insurance claims are most often denied because of beneficiary designation problems, coverage election issues, or administrative errors in federal employment records. Unlike private life insurance, FEGLI is governed entirely by federal law, and benefits are paid strictly according to statutory and regulatory rules.

A denial does not automatically mean the benefits are lost. Many denied FEGLI claims are resolved once records are reviewed and errors are corrected.

How FEGLI Claims Are Evaluated

FEGLI claims are administered under federal regulations, not state insurance law. Insurers reviewing FEGLI claims rely heavily on official federal employment records, coverage election forms, and beneficiary designations on file at the time of death.

Family expectations, wills, divorce decrees, or verbal promises generally do not control FEGLI payments.

Beneficiary Designation Issues

The most common reason for FEGLI claim denial involves beneficiary designations.

Denials frequently arise when:

• A beneficiary designation form is missing or outdated
• A former spouse remains listed as beneficiary
• Multiple people claim entitlement to the benefit
• A new designation was completed but not properly processed

Federal law generally enforces the most recent valid designation on file, but administrative processing errors can make denials challengeable.

Outdated or Missing Forms

Many FEGLI denials are based on claims that required forms were never submitted or were improperly handled.

Examples include:

• Beneficiary forms lost or misfiled by the agency
• Incomplete or incorrectly processed election forms
• Coverage elections not reflected in employment records

These cases often turn on whether the federal agency fulfilled its administrative duties.

Coverage After Retirement or Separation

Some FEGLI claims are denied based on allegations that coverage ended after retirement or separation from service.

These denials may involve:

• Failure to properly elect continuation of coverage
• Missed or misunderstood conversion deadlines
• Errors in retirement or benefits paperwork

Coverage disputes frequently stem from agency mistakes rather than beneficiary error.

Premium and Election Disputes

Insurers may also deny FEGLI claims by asserting that optional coverage was never properly elected or that premiums were not paid.

These issues often involve discrepancies between payroll records, benefits elections, and OFEGLI records.

Does a Denial Mean the FEGLI Claim Is Over?

No. Many FEGLI denials reflect unresolved documentation or administrative problems rather than a final determination. Once records are reviewed and corrected, benefits may be paid.

Federal courts can enforce payment when denials are not supported by the record.

What to Do After a FEGLI Claim Is Denied

If your FEGLI claim has been denied:

• Obtain the written denial explanation and claims file
• Request copies of all beneficiary designation forms
• Gather federal employment and retirement records
• Preserve all correspondence and agency documents
• Avoid responding or appealing without understanding federal rules

FEGLI disputes often hinge on precise documentation and regulatory compliance.

Related Guidance

For a detailed overview of how federal employee life insurance denials are handled, see our Denied FEGLI Claim page, and our Denied FEGLI Claim Fact Sheet.

If a Federal Employees’ Group Life Insurance claim has been denied, it may still be possible to recover the full benefit through proper review and action.

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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