How Much Is USPS Life Insurance? FEGLI Coverage Explained

If you searched "USPS life insurance amount," you already have FEGLI — the question is how much it actually pays out, and whether that number is enough. Here is exactly how Basic and Optional coverage are calculated, using the real FEGLI formulas.

FEGLI Basic: how the amount is set

Basic life insurance is not a number you pick. It is calculated automatically from your pay: your annual basic pay, rounded up to the next $1,000, plus $2,000. The minimum Basic amount is $10,000, even for very low pay rates. The Postal Service pays the full cost of Basic coverage — you do not pay a premium for it.

FEGLI Optional coverage: Options A, B, and C

Basic is automatic; Optional coverage is elected, and you pay 100% of the cost, with rates that rise as you get older. There are three types:

• Option A (Standard): A flat $10,000 of additional coverage.
• Option B (Additional): One to five multiples of your annual basic pay (rounded up to the next $1,000). At five multiples, a $56,000 pay rate could add roughly $280,000 of coverage.
• Option C (Family): Covers your spouse and eligible dependent children, in one to five multiples. Each multiple is $5,000 for a spouse and $2,500 per eligible child.

Adding it up: a realistic total

Illustration only

These figures are for illustration based on the FEGLI formulas above and one hypothetical pay rate. They are not a quote and do not reflect your personal election, pay, age, or premium cost. Pull your own FEGLI elections and Statement of Earnings to see your real numbers.

Is that enough?

For many postal households, Basic plus a modest Option B election covers final expenses but falls short of true income replacement once a mortgage, other debts, and years of lost income are added up. We walk through the full math in is FEGLI enough for postal workers.

Why Basic alone rarely replaces income

Basic is built off your pay, not your family's needs, and it caps out low relative to what most households would actually need if a primary income stopped. A common income-replacement guideline is 10 to 15 times annual income — on a $58,000 Basic amount tied to that same pay, most families would fall well short of that target using Basic alone.

A step-by-step way to check your own number

1. Pull your Statement of Earnings and Leave (or your FEGLI election paperwork) for your exact annual basic pay.
2. Calculate Basic: round pay up to the next $1,000, add $2,000.
3. Add any Option A ($10,000 flat) and Option B (your pay rate × elected multiples) you have elected.
4. Add up your mortgage balance, other debts, and roughly 10 years of income your family would need to replace.
5. Compare the two totals. The difference is the coverage gap worth pricing out.

Common mistakes when estimating FEGLI

• Assuming Basic already includes Optional. They are separate; Optional must be actively elected and paid for.
• Forgetting Optional premiums rise with age. The multiples stay the same, but the cost per multiple increases at each age band, which is why many employees under-elect Option B over time.
• Not checking current elections. Elections from years ago may no longer match current pay, family situation, or goals.

What to do if there is a gap

Private, portable term or whole life coverage can fill the difference — and unlike FEGLI Optional, it does not disappear the day you leave the Postal Service. Many postal workers qualify with no medical exam, and it is worth comparing what that coverage typically costs before deciding how much to add. Start on the postal worker coverage page to see your options.

Frequently Asked Questions

How much is USPS life insurance through FEGLI?

Basic coverage equals your annual basic pay rounded up to the next $1,000, plus $2,000, with a $10,000 minimum, paid for by the Postal Service. Optional coverage (Options A, B, and C) can add more, but you pay for it and rates rise with age.

How is FEGLI Option B calculated?

Option B lets you elect one to five multiples of your annual basic pay, rounded up to the next $1,000. Each multiple roughly equals your rounded annual pay.

Does FEGLI cost anything?

Basic coverage is fully paid by the Postal Service. Optional coverage (A, B, and C) is paid entirely by the employee, and the cost increases at each age band.

Is FEGLI coverage enough on its own?

For many postal families, Basic plus a modest Optional election covers final costs but does not fully replace income or cover a mortgage. Many postal workers add a private policy to close that gap.

Does FEGLI coverage follow you after you leave the Postal Service?

Generally no, or only at a much higher cost if converted. A private policy you own stays in force regardless of your job status, which is why many postal workers pair FEGLI with their own coverage.

How do I find my exact FEGLI amount?

Check your Statement of Earnings and Leave, or your FEGLI elections on file, for your actual annual basic pay and elected options. A licensed agent can help you translate that into a real coverage picture.