FEGLI, the Federal Employees’ Group Life Insurance program, is governed by federal law and strict administrative rules. When a FEGLI claim is denied or disputed, the outcome usually turns on one issue above all others: whether the beneficiary designation strictly complies with FEGLI regulations.
Our firm recently secured a $113,200 FEGLI payout after a denied claim, adding to a long track record of successfully resolving FEGLI disputes for federal employees and their families. These cases highlight how unforgiving FEGLI rules can be, and why beneficiary intent alone is often not enough.
Below are representative FEGLI dispute scenarios that illustrate how courts analyze denied or contested FEGLI claims. When you are facing a denied FEGLI claim, we are here for you. Look at our FEGLI Fact Sheet for more information.
FEGLI Dispute Examples and Legal Outcomes
1. FEGLI Beneficiary Dispute Involving MetLife
Scenario:
A federal employee carried both Basic and Optional FEGLI coverage. He designated his son as beneficiary for Basic coverage and his daughter for Optional coverage. Later, he canceled the Optional coverage but did not submit a new beneficiary form for the Basic coverage.
After his death, both children claimed the Basic FEGLI benefit.
Court Analysis:
The court focused on the last valid beneficiary designation on file for the Basic coverage.
Outcome:
The son received the entire Basic FEGLI benefit because he was the only properly designated beneficiary. Canceling Optional coverage did not affect the Basic beneficiary designation.
2. FEGLI Divorce Dispute Initially Handled by State Farm
Scenario:
A federal employee named her husband as FEGLI beneficiary. After divorcing and remarrying, she never updated her FEGLI beneficiary designation. Upon her death, both the former spouse and current spouse submitted claims.
Court Analysis:
FEGLI is governed by federal law, which preempts state divorce revocation statutes.
Outcome:
The ex husband received the FEGLI proceeds because he remained the named beneficiary on file.
3. FEGLI Family Dispute Involving Liberty Mutual
Scenario:
A federal employee designated his sister as FEGLI beneficiary before marriage. After marrying and having a child, he never updated the beneficiary form. Following his death, his spouse and child challenged the sister’s claim.
Court Analysis:
Courts apply FEGLI’s order of precedence strictly and do not consider family status changes unless the beneficiary designation is updated.
Outcome:
The sister received the FEGLI benefit as the valid named beneficiary.
4. FEGLI Technical Defect Dispute Involving Prudential
Scenario:
A federal employee attempted to change his FEGLI beneficiary from his ex wife to his new wife. However, the change of beneficiary form was not signed or dated as required by FEGLI regulations.
After his death, both women claimed the benefit.
Court Analysis:
FEGLI requires strict compliance with execution requirements for beneficiary changes.
Outcome:
The attempted change was invalid. The ex wife received the FEGLI proceeds.
Why FEGLI Claims Are Frequently Denied or Contested
FEGLI disputes arise for reasons that differ from private life insurance policies:
• Federal law controls all FEGLI beneficiary issues
• State divorce or inheritance laws do not override FEGLI
• Intent does not matter without proper documentation
• Technical defects invalidate beneficiary changes
• Courts apply strict compliance, not equity
Many beneficiaries assume that marriage, divorce, or a will automatically changes FEGLI benefits. That assumption is almost always wrong.
Additional FEGLI Disputes We Have Resolved
Beyond the cases above, we have handled FEGLI related disputes involving insurers and administrators such as:
• Lincoln Financial Group
• Pacific Life
• Banner Life
• Protective Life
Each FEGLI case turns on the administrative record and compliance with federal regulations.
What These FEGLI Cases Teach
Across FEGLI litigation, courts consistently emphasize:
• The last properly executed beneficiary designation controls
• Federal law overrides state family law
• Unsigned or undated forms are invalid
• Verbal statements and emails do not matter
• Insurers and administrators cannot waive FEGLI rules
Even small technical errors can completely change who receives the benefit.
How FEGLI Denials and Disputes Are Challenged
Successful FEGLI claims usually involve:
• Obtaining the official FEGLI beneficiary record
• Reviewing execution and filing compliance
• Identifying invalid or incomplete change forms
• Analyzing federal preemption issues
• Litigating beneficiary entitlement when necessary
Because FEGLI disputes are often resolved in court, early legal analysis is critical.
Frequently Asked Questions
Why are FEGLI claims denied so often
Most denials stem from defective beneficiary designations or misunderstandings about how FEGLI rules work.
Does divorce automatically remove a former spouse under FEGLI
No. FEGLI does not recognize automatic revocation after divorce.
Can a will change a FEGLI beneficiary
No. Only a properly executed FEGLI beneficiary designation controls.
Do courts consider intent in FEGLI cases
Generally no. Courts focus on strict compliance with federal requirements.
Should a denied FEGLI claim be reviewed by a lawyer
Yes. Many FEGLI denials are based on technical issues that can be challenged.