FEGLI Life Insurance Denials and Appeals Explained
Many families assume that because FEGLI is a federal life insurance program, claims are automatically paid without dispute. That assumption is often wrong. FEGLI claims are denied more frequently than most beneficiaries expect, and those denials usually come as a complete surprise during an already painful time.
Unlike private life insurance, FEGLI is governed by rigid federal rules. Missing paperwork, outdated beneficiary designations, and administrative errors can all result in a denial, even when the insured believed coverage was active and in good standing. Understanding why FEGLI claims are denied is the first step toward knowing whether the decision can be challenged.
Below are the most common FEGLI denial scenarios we see, based on real cases our firm has handled.
Coverage Lapsed After Retirement or Extended Leave
The single most common FEGLI denial involves coverage lapsing after retirement, disability retirement, or long-term leave. Many federal employees believe FEGLI continues automatically once they retire, with premiums deducted from their annuity just as they were deducted from their paycheck. That is not always true.
In many cases, continuation elections must be made, paperwork must be processed correctly, and deductions must actually begin. If any part of that process fails, coverage can quietly terminate. Often, no warning notice is ever sent.
We handled a claim for the daughter of a retired Army Corps of Engineers employee who died believing his FEGLI policy was still active. OPM denied the claim, stating the coverage had lapsed two years earlier. After reviewing his retirement file, we discovered OPM never processed his continuation election despite having received it. By reconstructing the paper trail and forcing reconsideration, we were able to secure payment of the benefit.
Outdated or Incorrect Beneficiary Designations
FEGLI follows a strict rule: only the most recent valid Designation of Beneficiary form controls who gets paid. Intent does not matter. Wills do not matter. Length of marriage does not matter.
If a federal employee names a beneficiary and never updates the form after divorce, remarriage, or the birth of children, the benefit will still go to the person listed, even if that person has not been part of the insured’s life for decades.
We represented the surviving spouse of a federal IT professional who was married for more than twenty years. After his death, she learned the entire FEGLI benefit had been paid to his former wife from a short-lived first marriage. There was no legal mechanism to reverse it. This outcome is harsh, but it is how FEGLI works.
No Beneficiary Form on File
When no FEGLI beneficiary designation exists, federal law imposes a mandatory order of precedence. Payment goes to the surviving spouse first, then children, then parents, then the estate, then next of kin.
This becomes devastating when the insured intended to leave the benefit to someone outside that hierarchy, such as a long-term partner, stepchild, or sibling, but never completed the required form.
We represented a woman in California who lived with her partner for over a decade. After his death, she filed a FEGLI claim only to learn the benefit had already been paid to his estranged adult son. Because no designation form existed, the distribution was legally correct and impossible to challenge.
Suicide Within Two Years of Enrollment or Reinstatement
FEGLI includes a two-year suicide exclusion that applies after initial enrollment or reinstatement of coverage. If death occurs by suicide within that window, the claim is denied, regardless of how long the insured previously carried FEGLI coverage.
This often surprises families when coverage was reinstated after a break in service, even if the employee had decades of prior federal employment.
In one case we handled, a federal employee returned to service and reinstated FEGLI coverage. He died just over a year later. The claim was denied under the suicide exclusion. After reviewing the file, we discovered OPM had incorrectly delayed the reinstatement effective date. We argued the exclusion period had already expired. While the full benefit was not recovered, we secured a partial payout that had initially been refused.
Alleged Misrepresentation During Enrollment or Reinstatement
FEGLI claims can also be denied if OPM or MetLife alleges that the insured misrepresented medical information when enrolling or reinstating coverage. These denials typically occur within the contestability period and are often broader than justified.
A Department of Homeland Security employee’s family contacted us after a claim was denied following his death from a stroke. OPM claimed he failed to disclose a prior cardiac issue. Medical records showed the condition had no causal connection to his death. We assembled supporting documentation, challenged the materiality of the alleged omission, and successfully reversed the denial.
Interpleader Lawsuits and Competing Beneficiary Claims
When multiple people claim the FEGLI benefit, OPM or MetLife may refuse to decide and instead file an interpleader lawsuit. The benefit is deposited with the court, and the claimants are forced to litigate against one another, usually in federal court.
These disputes often involve alleged forged signatures, conflicting forms, or challenges between current spouses, ex-spouses, children, or siblings.
We represented a claimant in Georgia whose partner had submitted a new beneficiary form shortly before death. The signature was disputed, and competing claims were filed by an ex-spouse and a sibling. After discovery, handwriting analysis, and document review, the court ruled in our client’s favor. The case took nearly a year to resolve, but the benefit was ultimately awarded.
Administrative Errors and Lost Federal Paperwork
Not all FEGLI denials are the fault of the insured. Government agencies lose paperwork. Forms are misfiled. Premium deductions are mishandled. These errors can derail valid claims.
In one case involving a Department of Agriculture employee, OPM claimed it never received an updated beneficiary designation. The family produced a timestamped copy showing it had been hand-delivered to HR. Metadata from the scanned document confirmed the date and location of submission. After weeks of resistance, OPM reversed its position and released the benefit.
How to Respond to a Denied FEGLI Claim
A FEGLI denial is not always final. Many denials are based on incomplete records, administrative mistakes, or overly rigid interpretations of the rules. Appeals are possible, and in many cases, they succeed.
An experienced life insurance attorney can determine whether the denial involved a lapse error, beneficiary dispute, misrepresentation claim, or procedural failure. The right documentation and legal framing often make the difference between a permanent denial and a paid claim.
We Handle FEGLI Appeals Nationwide
Our firm has handled FEGLI appeals across the country. We know how to work with OPM, MetLife, and the federal rules governing FEGLI benefits. We have reversed denials involving missing forms, improper lapses, beneficiary disputes, and interpleader litigation.
If your FEGLI claim was denied, call us at 800-330-2274 for a free review. We will evaluate the denial, explain your options, and fight to recover the benefit your loved one intended you to receive.