Our life insurance law firm successfully resolved a denied $232,000 Federal Employees’ Group Life Insurance (FEGLI) claim, securing full payment for the rightful beneficiary. FEGLI claims are governed exclusively by federal law, and when mistakes occur, beneficiaries often face delays or outright denials that require legal intervention. This case is another example of how denied FEGLI claims can be overturned when the law is properly applied.
Families frequently assume that FEGLI operates like private life insurance. It does not. Federal statutes strictly control eligibility, beneficiary rights, and payment priority. When insurers or administrators misapply those rules, beneficiaries can lose substantial benefits unless the denial is challenged. When you are facing a denied FEGLI claim, we are here for you. Look at our FEGLI Fact Sheet for more information.
Why FEGLI Claims Are Different From Private Life Insurance
FEGLI is a federal benefit program administered by the Office of Personnel Management and underwritten by MetLife. Because it is governed by federal statute, state insurance laws do not apply. Divorce laws, probate rules, and equitable doctrines that often control private life insurance disputes are irrelevant in FEGLI cases.
The most important distinction is beneficiary control. The last valid beneficiary designation on file with Office of Personnel Management controls payment, even if the designation is outdated or appears unfair. Courts are required to enforce the written designation exactly as it exists.
Common Reasons FEGLI Claims Are Denied or Delayed
FEGLI denials usually arise from procedural or legal conflicts rather than cause of death. Common issues include disputes between multiple claimants, missing or outdated beneficiary forms, allegations that coverage terminated before death, or administrative errors related to retirement or employment status.
Claims are also delayed when OPM cannot confirm eligibility or when documentation is incomplete. In some cases, beneficiaries are incorrectly told that coverage lapsed or that the insured opted out, even when records prove otherwise. These errors are not uncommon and often require legal pressure to correct.
FEGLI Order of Precedence Explained
When no valid beneficiary designation exists, FEGLI benefits are paid according to a mandatory federal order of precedence. This order cannot be altered by wills, divorce decrees, or state probate law.
The statutory order is as follows:
Designated beneficiary on file
Surviving spouse
Surviving children
Surviving parents
Executor or administrator of the estate
Next of kin
If no claim is made within four years, the funds revert to the federal government. These rules often surprise families and are a frequent source of litigation.
When a FEGLI Claim Becomes a Legal Matter
A FEGLI claim is considered delayed once it remains unpaid more than 30 days after submission of required documents. At that point, beneficiaries are often caught in repeated requests for paperwork or conflicting explanations from administrators. Denials frequently follow.
Legal representation becomes critical when a claim is denied, delayed, or challenged by another claimant. FEGLI disputes often involve interpleader actions, where the insurer deposits the funds with the court and lets claimants litigate entitlement. These cases move quickly and have strict procedural requirements.
How We Resolved the $232,000 Denied FEGLI Claim
In this case, the claim was denied based on an incorrect interpretation of beneficiary entitlement under federal law. After reviewing OPM records, employment history, and beneficiary designations, we established the claimant’s legal priority and forced compliance with the governing statute. The insurer ultimately released the full $232,000 benefit.
This outcome reflects a common theme in FEGLI litigation. Denials are often based on administrative shortcuts rather than legal analysis. When challenged properly, many are reversed.
Our Experience With Denied FEGLI Claims Nationwide
Our firm represents beneficiaries across the country in denied and delayed FEGLI claims. We handle disputes involving beneficiary conflicts, alleged lapses in coverage, retirement related terminations, and interpleader lawsuits. We also litigate related accidental death and dismemberment claims tied to FEGLI coverage.
Because FEGLI is governed by federal law, mistakes are costly and appeal opportunities are limited. Early legal involvement significantly improves the likelihood of recovery.
If your FEGLI claim has been denied, delayed, or challenged, legal review is essential. These cases are rarely resolved correctly without intervention.