FEGLI Claim Denied or Delayed Attorney
Federal Employees Group Life Insurance — known as FEGLI — is the life insurance program covering most civilian federal employees in the United States. It is one of the largest group life insurance programs in the world, covering millions of current and former federal workers and their families.
When a FEGLI claim is denied or delayed, the stakes are significant — FEGLI death benefits can reach hundreds of thousands of dollars — and the legal landscape is unlike any other life insurance claim. FEGLI is governed entirely by federal law, not state law. State insurance regulations, state court decisions, and state automatic revocation statutes do not apply. The rules are unique, technical, and frequently misunderstood by insurers, federal agencies, and beneficiaries alike.
At Kadetskaya Law Firm LLC, we represent FEGLI beneficiaries whose claims have been denied, delayed, or disputed. We understand the federal statutes and regulations that govern FEGLI and know how to challenge denials and recover benefits for surviving family members.
Call (888) 510-2212 for a free consultation. No fees unless we win.
What Is FEGLI?
FEGLI is a group term life insurance program administered by the U.S. Office of Personnel Management (OPM) and underwritten by Metropolitan Life Insurance Company (MetLife). It provides life insurance coverage to federal civilian employees, retirees, and their family members. FEGLI coverage comes in several forms:
Basic Insurance
Basic FEGLI coverage equals the employee's annual basic pay rounded up to the next $1,000, plus $2,000. The federal government pays one-third of the premium for Basic coverage; the employee pays two-thirds.
Option A — Standard
Optional additional coverage of $10,000. The employee pays the full premium.
Option B — Additional
Optional coverage in multiples of 1, 2, 3, 4, or 5 times the employee's annual basic pay. The employee pays the full premium.
Option C — Family
Optional coverage for the employee's spouse and eligible dependent children. The employee pays the full premium.
Coverage continues into retirement under certain conditions. Retirees who have carried FEGLI coverage for at least five consecutive years immediately before retirement may continue coverage in retirement, with some reductions available based on age.
How FEGLI Differs From Other Life Insurance
FEGLI is governed by the Federal Employees Group Life Insurance Act — FEGLIA — a federal statute, not state insurance law. This distinction has critical consequences for beneficiaries:
State automatic revocation upon divorce statutes do not apply to FEGLI.
In many states, divorce automatically removes an ex-spouse as a life insurance beneficiary. This rule does not apply to FEGLI. If a federal employee named their spouse as FEGLI beneficiary and later divorced without updating the designation, the ex-spouse named on the FEGLI form is generally entitled to the full death benefit — regardless of the divorce, regardless of any state law, and regardless of what the divorce decree says.
FEGLI follows a strict order of precedence when no valid beneficiary designation is on file.
If a federal employee dies without a valid FEGLI beneficiary designation, the benefit is paid in this order: (1) widow or widower; (2) children and descendants of deceased children; (3) parents; (4) executor or administrator of the estate; (5) next of kin under state intestacy law.
A divorce decree does not automatically override the FEGLI beneficiary form.
Courts have consistently held that a divorce decree provision purporting to award FEGLI benefits to someone other than the named beneficiary does not override the designation on file — unless the decree meets specific federal requirements. Many families are surprised to discover that a divorce decree stating "the ex-spouse waives all rights to FEGLI benefits" does not bind the insurer if the employee never submitted a new beneficiary designation form.
State court orders have limited effect on FEGLI.
Because FEGLI is governed by federal law, state court orders — including divorce decrees, guardianship orders, and probate proceedings — have limited ability to override or modify FEGLI beneficiary designations.
Common Reasons FEGLI Claims Are Denied or Disputed
Invalid or missing beneficiary designation
If the federal employee did not submit a valid beneficiary designation form — or if the form on file is defective — FEGLI pays according to the statutory order of precedence. This can produce outcomes that do not reflect the employee's wishes and can generate disputes among surviving family members.
Competing claims from ex-spouse and current spouse
When a federal employee divorces and remarries without updating the FEGLI designation, both the ex-spouse and the current spouse may claim the benefit. FEGLI's federal preemption of state divorce revocation statutes frequently means the ex-spouse named on the form is entitled to the benefit — even if the current spouse believes otherwise.
Coverage termination disputes
FEGLI coverage terminates when an employee leaves federal service, unless they elect to convert or continue coverage under applicable rules. Disputes arise about whether coverage was properly terminated, whether the employee was properly notified, and whether conversion or continuation rights were properly exercised.
Retiree coverage disputes
Federal retirees must have carried FEGLI coverage for at least five consecutive years immediately before retirement to continue coverage in retirement. Disputes arise about whether this requirement was met and whether coverage was properly continued.
Beneficiary disputes involving divorce decrees
Disputes frequently arise when a divorce decree contains provisions about FEGLI benefits but the employee never updated the beneficiary designation. The insurer may face competing claims from the ex-spouse named on the form and the current spouse or estate claiming under the divorce decree.
Assignment of FEGLI benefits
FEGLI benefits can be assigned — transferred to another person or entity. Assignment disputes arise when the validity or scope of an assignment is contested.
OPM and employing agency errors
Federal agencies and OPM sometimes make administrative errors — failing to process beneficiary designation changes, failing to notify employees of coverage options, or incorrectly calculating benefit amounts. These errors can result in claims being improperly denied or underpaid.
Call (888) 510-2212 for a free consultation. No fees unless we win.
FEGLI and Divorce — What Every Beneficiary Needs to Know
Divorce is the single most common source of FEGLI beneficiary disputes. The rules governing FEGLI in the context of divorce are significantly different from the rules for private life insurance policies.
FEGLI is governed by FEGLIA — a federal statute — which preempts all state laws.
This means that state automatic revocation upon divorce statutes, community property laws, and state court divorce decrees cannot override the FEGLI beneficiary designation.
The ex-spouse named on the FEGLI form is generally entitled to the benefit.
If a federal employee named their spouse as beneficiary and later divorced without updating the form, the ex-spouse retains the right to the FEGLI death benefit. This is true even if:
- The divorce decree states the ex-spouse waives FEGLI benefits
- The employee remarried
- The employee's current spouse believes they are entitled to the benefit
- The divorce occurred in a state with automatic revocation on divorce
A valid court order can override the FEGLI designation in some circumstances.
FEGLI regulations provide that a valid court order — one that meets specific federal requirements — can override the beneficiary designation and direct payment to a different person. However, not all divorce decrees qualify as valid court orders under FEGLI standards. The decree must meet specific requirements set by OPM regulations.
Post-distribution lawsuits are possible.
In some cases, even after FEGLI pays the ex-spouse as the named beneficiary, the current spouse or estate may have a legal claim against the ex-spouse to recover the funds — based on the divorce decree's waiver provisions. These post-distribution cases are complex and require experienced legal counsel.
How FEGLI Claims Are Processed
When a federal employee dies, the beneficiary files a FEGLI death claim with the Office of Federal Employees Group Life Insurance — OFEGLI — which is administered by MetLife on behalf of OPM.
OFEGLI reviews the claim and the beneficiary designation on file and pays benefits according to the designation — or according to the order of precedence if no valid designation exists.
If there are competing claims — for example, both an ex-spouse and a current spouse file claims — OFEGLI may interplead the funds into federal court and ask a judge to determine who is entitled to the benefit.
If OFEGLI denies a claim or disputes coverage, the beneficiary must pursue the claim through federal administrative and legal channels.
What You Should Do If Your FEGLI Claim Was Denied or Disputed
Step 1 — Request the complete claim file from OFEGLI.
Request every document OFEGLI relied on — the beneficiary designation on file, any competing claims received, and the specific reason for the denial or dispute.
Step 2 — Review the beneficiary designation form.
Obtain a copy of the FEGLI beneficiary designation form the employee submitted — or the most recent form on file. Compare it to the order of precedence if no valid form exists.
Step 3 — Review any divorce decree or court order.
If a divorce is involved, review the decree carefully to determine whether it meets the specific federal requirements for a valid court order under FEGLI regulations.
Step 4 — Respond to any interpleader action immediately.
If OFEGLI files an interpleader — a federal court lawsuit — you will be served with a summons. You typically have 21 to 30 days to respond. Failure to respond can result in a default judgment permanently forfeiting your right to the benefit. Contact an attorney the same day you receive the summons.
Step 5 — Contact a FEGLI attorney.
FEGLI claims require knowledge of federal statutes, OPM regulations, MetLife claims procedures, and federal court practice. An experienced attorney can evaluate your position, identify the strongest legal arguments, and represent you through the claims and litigation process.
Our Experience With FEGLI Claims
Kadetskaya Law Firm, LLC has represented beneficiaries in FEGLI claim disputes involving:
- Beneficiary disputes between ex-spouses and current spouses involving FEGLIA preemption of state divorce revocation statutes
- FEGLI interpleader actions filed by OFEGLI in federal court
- Disputes involving divorce decrees and their effect on FEGLI beneficiary designations
- FEGLI coverage termination disputes involving retirees
- Claims involving OPM and employing agency administrative errors
***Prior results do not guarantee a similar outcome.
Delayed or Denied FEGLI Claim?
Call (888) 510-2212 for a free consultation.
Frequently Asked Questions
Does divorce automatically remove my ex-spouse as my FEGLI beneficiary?
No. Unlike many state-regulated life insurance policies, FEGLI is governed by federal law which does not automatically revoke an ex-spouse's beneficiary designation upon divorce. If the federal employee named their ex-spouse on the FEGLI form and never updated it, the ex-spouse is generally entitled to the full benefit regardless of the divorce.
Can a divorce decree override a FEGLI beneficiary designation?
Only in limited circumstances. A divorce decree must meet specific federal requirements to qualify as a valid court order under FEGLI regulations. Most standard divorce decrees — even those that expressly purport to award or waive FEGLI benefits — do not meet these requirements and will not override the form on file.
What if there is no beneficiary designation on file?
FEGLI pays benefits according to the statutory order of precedence: first to the widow or widower, then to children and descendants of deceased children, then to parents, then to the executor or administrator of the estate, and finally to next of kin under state intestacy law.
What if I received an interpleader notice from OFEGLI?
You have been served as a defendant in a federal lawsuit. You typically have 21 to 30 days to respond. Contact an attorney immediately — failing to respond can result in a default judgment permanently forfeiting your right to the FEGLI benefit.
Does FEGLI coverage continue after retirement?
Yes, under certain conditions. A federal employee must have carried FEGLI coverage for at least five consecutive years immediately before retirement to continue coverage in retirement. The coverage may be reduced based on age. Disputes arise about whether the five-year requirement was met and whether coverage was properly continued.
Can FEGLI benefits be assigned?
Yes. A federal employee can assign their FEGLI coverage — transferring ownership of the policy to another person. If coverage has been assigned, the assignee controls the beneficiary designation. Assignment disputes arise when the validity or scope of an assignment is contested.
What if my FEGLI claim was denied because of an OPM or agency error?
OPM and employing agencies sometimes make administrative errors that result in incorrect claim denials. These errors are challengeable through administrative appeals and, if necessary, federal court litigation. Contact an attorney to evaluate whether an administrative error affected your claim.
How much does it cost to hire an attorney for a FEGLI claim?
Kadetskaya Law Firm, LLC handles FEGLI cases on a contingency fee basis. You pay no attorney fees unless we recover your benefits. There are no upfront costs and no hourly charges.
Contact Kadetskaya Law Firm, LLC
If your FEGLI claim was denied, delayed, or disputed — or if you have received an interpleader summons involving FEGLI benefits — contact us immediately for a free, confidential case evaluation.
Call (888) 510-2212 today.
We represent FEGLI beneficiaries nationwide. No fees unless we win.
Kadetskaya Law Firm, LLC
630 Freedom Business Center Dr, 3rd Floor
King of Prussia, PA 19406
Call (888) 510-2212 now to speak with a FEGLI lawyer.
info@life-insurance-lawyer.com
***This page is for general informational purposes only and does not constitute legal advice. Contact our firm directly for advice specific to your situation.