What is FEGLI and How Does It Impact You? 
The Federal Employees Group Life Insurance (FEGLI) program is a life insurance benefit available to federal employees, retirees, and certain other eligible individuals. FEGLI offers both basic life insurance and optional coverage that can be adjusted according to your personal needs. While this program provides valuable coverage, it also comes with specific timelines that must be followed in order to make changes or updates to your coverage.
In New York, federal employees and retirees must be particularly vigilant when it comes to updating beneficiaries, opting into additional coverage, or making other critical changes. If any of these actions are missed, it could lead to complications later, particularly when it comes time to file a claim after a death. Knowing and adhering to FEGLI deadlines ensures that your family will be able to access benefits promptly, and without additional complications.
FEGLI allows federal employees to designate beneficiaries for their life insurance policy, and if there are any changes in family dynamics—such as a new spouse or child—those updates must be made in a timely manner to avoid conflicts later. Federal employees must act before the January 31st deadline to ensure their coverage is current and their beneficiaries are updated.
What is ERISA and Why It Matters for Your Family’s Future
The Employee Retirement Income Security Act (ERISA) is another critical framework that affects many New Yorkers, particularly those enrolled in employer-sponsored retirement and health insurance plans. ERISA sets rules and regulations for how benefits, including life insurance and retirement plans, are administered by private employers. It also determines how beneficiaries are designated and how claims are processed. For many workers, ERISA governs retirement benefits and provides the legal structure for how life insurance and other benefits are offered. If you’re working in New York for a company that offers ERISA-governed benefits, you must pay close attention to the deadlines for reviewing and updating beneficiaries. Failing to do so could mean that your benefits are not distributed according to your wishes. Under ERISA, employees have the right to designate beneficiaries who will receive benefits from their life insurance or retirement plans upon their death. If the beneficiary designation isn’t updated regularly—especially after major life events such as marriage, divorce, or the birth of a child—the distribution of those benefits may be delayed, or worst-case scenario, go to an unintended recipient. This is why the January 15th deadline is so crucial for employees in New York.Key Deadlines for New York Families to Keep in Mind
FEGLI: January 31st Deadline for Beneficiary Updates
Federal employees and retirees in New York must ensure that their FEGLI coverage and beneficiary designations are updated before January 31st. If you have experienced any significant life changes over the past year, it’s important to review your policy and make any necessary updates. This can be done through your human resources department, who will guide you through the process of making changes.
We contacted Trief, Olk & Dror to help us with a life insurance issue and Shelly Friedland was the attorney assigned to our case. Before Shelly took our case she explained to us that the likelihood of our success without going to court was possible but not likely. Unfortunately we did not get the outcome we had hoped for but it was our decision to not move forward and have our case litigated. Shelly is very knowledgeable and was very straight-forward in her assessment of our case as we moved forward. She was very patient and thorough in answering our questions. She always responded in a timely manner and listened to our concerns. We would certainly recommend Shelly and would use her firm again in the future.”
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Shelly Friedland worked on my case where a life insurance policy had lapsed and was even a few days beyond the grace period. Farmers had rejected my claim twice and was unwilling to take a second look. Shelly was able to get them to pay the entire claim without going to court, and the full amount was deposited in my account within a couple months. Highest recommendation.”
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Trief, Olk & Dror is a superior law firm. Their attorneys and other legal professionals have a brilliant understanding of the law and the litigation process. They diligently perform their work in an efficient, strategic and cost-effective manner to ensure the best possible outcomes for their clients.
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ERISA: January 15th Annual Review
For employees with ERISA-governed benefits, the January 15th deadline is critical for making any necessary changes to your retirement and life insurance benefits. These updates could include ensuring that beneficiaries are correctly designated, or making adjustments to your coverage to reflect life changes. For example, if you’ve recently gotten married or had a child, you may want to update your beneficiary information or adjust the amount of coverage you’ve selected. Many employees overlook this simple but essential task, assuming that their benefits will be automatically updated. However, this is not the case, and failing to take action can result in complications down the line.Settlements & Verdicts
How to Ensure You Meet These Deadlines
Meeting these deadlines isn’t just a matter of checking off a box. It requires careful attention to detail and an understanding of your benefits package. Here’s how to make sure you’re on track:- Review Your FEGLI Coverage and Beneficiaries: Take the time to carefully review your life insurance coverage under FEGLI. This includes both your basic and optional coverage. Ensure that the beneficiaries listed are still relevant and that your coverage reflects your current needs. Make adjustments where necessary, particularly if you’ve experienced a significant life change.
- Consult with Your ERISA Plan Administrator: Contact your employer’s benefits administrator to review your ERISA benefits, including your life insurance coverage and retirement plan. Update your beneficiary information and make any other necessary changes. You’ll want to ensure that your plan reflects your current situation, whether that means changing your beneficiary designation or updating your retirement plan contributions.
- Use Reminders and Alerts: Set digital reminders or calendar alerts to ensure that you don’t miss these crucial deadlines. Setting these notifications well in advance of January 15th and 31st will give you enough time to address any discrepancies or missing information.