How To Cancel FEGLI: Step-by-Step Guide and Coverage Options Comparisons

Understanding FEGLI Coverage

It’s crucial to make sure you understand your FEGLI coverage before making any cancellation or reduction decisions. FEGLI consists of Basic coverage and several optional coverage components: 

• Basic FEGLI Coverage: Serves as the foundation of the FEGLI program and provides core life insurance protection. 
• Option A: Provides a fixed amount of additional life insurance coverage. 
• Option B: Provides additional coverage based on multiples of your salary. 
• Option C: Provides life insurance coverage for eligible spouses and dependent children. 

Can You Cancel FEGLI at Any Time?

Federal employees and Federal retirees can generally reduce or cancel FEGLI coverage at any time. Unlike some benefits programs, FEGLI coverage changes typically do not require you to wait for an Open Season. This flexibility allows Feds to adjust their life insurance coverage as financial obligations, family responsibilities, and long-term goals change over time. 

However, it’s important to understand the difference between cancelling FEGLI and reducing it. Cancelling FEGLI means ending your coverage entirely. Reducing FEGLI means keeping some coverage while removing specific portions, such as Option B multiples or Option C family coverage. For many individuals, a partial reduction may better align with their current insurance needs than a complete cancellation. 

Coverage changes should also be distinguished from beneficiary updates. Changing a beneficiary does not reduce or cancel your life insurance coverage; it only changes who receives the benefit if a claim is paid. 

When It May Make Sense To Reduce or Cancel FEGLI

Life insurance needs often change over the course of a career and into retirement. A policy that made sense years ago may no longer align with your current financial situation. Many Federal employees and retirees review their FEGLI coverage when they: 

• Pay off a mortgage 
• Eliminate major debts 
• No longer have dependents 
• Experience an income change 

While it may make sense to cancel or reduce FEGLI in some situations, many Federal employees and retirees still need life insurance protection to help cover final expenses, provide financial support for a spouse, replace income, or address outstanding obligations. Because of this, the decision to reduce or cancel coverage should be rooted in maintaining the right level of protection for your circumstances.  

Use WAEPA’s free coverage calculator to assess your life insurance needs > 

How To Cancel or Reduce FEGLI as a Current Federal Employee

Current Federal employees generally use Standard Form 2817 (SF 2817), Life Insurance Election, to enroll in, reduce, or cancel FEGLI coverage. The form allows you to make changes to Basic FEGLI coverage and any optional coverage you carry. Most employees submit this form through their agency’s human resources office. 

The specific submission process can vary by agency, but the FEGLI cancellation or reduction process typically looks like: 

Step 1: Review Your Current FEGLI Coverage 

Determine whether you carry only Basic FEGLI coverage or if you also have Option A, Option B, or Option C coverage. Reviewing your Leave and Earnings Statement (LES) can help you identify which coverages you’re enrolled in and how much you’re currently paying for them. 

This review should also include an assessment of your current insurance needs. Consider any remaining mortgage obligations, outstanding debts, family responsibilities, income replacement needs, and anticipated final expenses. If any portion of your FEGLI coverage has been assigned to another person or entity, confirm how that assignment may affect your ability to make changes. 

Step 2: Get SF 2817 From OPM or Your HR Office 

Use the current version of SF 2817 provided by your agency’s human resources office or available through OPM resources. Before completing the form, verify whether your agency requires a paper submission or processes FEGLI elections electronically. 

This is also a good time to confirm where the completed form should be submitted and whether any additional documentation is required. 

Step 3: Complete the Form Based on the Coverage You Want To Keep 

How you complete the SF 2817 form depends on the type of change you want to make. Employees who want to reduce coverage generally sign only for the FEGLI coverage they wish to continue. Employees who want to cancel FEGLI altogether will complete the section that allows you to waive coverage. 

Review each component of your coverage carefully before signing. Basic FEGLI, Option A, Option B, and Option C should each be evaluated separately to ensure the election accurately reflects your intentions. Taking a few extra minutes to review the completed form can help prevent unintended coverage changes. 

Step 4: Submit the Form to Your HR Office

Submit the completed SF 2817 in accordance with your agency’s procedures. In most cases, this means sending the form to your servicing human resources office for processing. Request confirmation that the form was received and ask about the expected processing timeline. 

Step 5: Check Your Leave and Earnings Statement

After submission, monitor your Leave and Earnings Statement to confirm that FEGLI premium deductions have changed as expected. Keep copies of the completed form, related correspondence, and payroll records for your files. 

How To Cancel or Reduce FEGLI as a Federal Retiree

Federal retirees follow a different process than current Federal employees when reducing or cancelling FEGLI coverage. SF 2817 is generally not used after retirement. Instead, retirees typically submit a written request to the OPM Retirement Center. 

A retiree’s request should clearly indicate whether the goal is to cancel all FEGLI coverage or reduce specific coverage components. OPM generally requires an original handwritten signature from the insured retiree before processing a cancellation or reduction request. 

Federal retirees should carefully evaluate any decision to reduce or cancel FEGLI coverage before submitting a request. Opportunities to reenroll, increase coverage, or restore previously canceled coverage may be limited or unavailable after retirement. If you’ve chosen replacement coverage, make sure it’s active before cancelling FEGLI to avoid any coverage gaps.  

What To Include in a Retiree FEGLI Cancellation Letter

A retiree’s written request should provide enough information for OPM to identify the account and understand the requested coverage change, such as: 

• Full legal name 
• Date of birth 
• Current mailing address 
• Phone number 
• Retirement claim number, such as CSA or CSF number, or Social Security number 
• Clear statement of the FEGLI coverage to cancel or reduce 
• Original handwritten signature 
• Date of signature 

Review the letter carefully before mailing it to ensure the requested change is clearly stated. Ambiguous instructions can delay processing or create confusion about the coverage you intend to keep. 

Where Retirees Send the Request

Federal retirees must submit FEGLI cancellation or reduction requests to the OPM Retirement Center by mail. You can find their current address and mailing instructions on the official OPM Retirement Center website. Consider using a trackable mailing method, if possible. 

After submitting a request, monitor annuity statements and any correspondence received from OPM to verify that the coverage change has been processed. Keeping copies of the signed letter, mailing confirmation, and any follow-up communications can help if questions arise later. 

FEGLI Waiver Forms, Cancellation Forms, and Beneficiary Forms

The terminology used on FEGLI forms can sometimes be confusing. Use the table below to determine which form you need. 

Action	Who Uses It	Form or Request	Main Purpose	Submission Destination
Waive, reduce, or cancel FEGLI	Current Federal employees	SF 2817, Life Insurance Election	Changes or ends FEGLI coverage	Agency HR office
Reduce or cancel FEGLI in retirement	Federal retirees	Signed written request	Changes or ends FEGLI coverage	OPM Retirement Center
Change FEGLI beneficiaries	Federal employees and retirees	SF 2823, Designation of Beneficiary	Updates who receives FEGLI benefits	HR office or OPM, depending on status

What To Consider Before Cancelling FEGLI

Before reducing or cancelling FEGLI coverage, take time to review your current financial obligations, insurance needs, and replacement coverage options. Life insurance decisions can have long-term implications for both you and your loved ones, so take the time to ask yourself: 

• Does anyone currently rely on your income or financial support? 
• Would your family have enough money to cover ongoing expenses if you passed away? 
• Do you still have major financial obligations, such as a mortgage, personal loans, or future education costs? 
• Have you considered funeral expenses, medical bills, and other final costs? 
• How do your current FEGLI premiums compare with other life insurance options? 
• If you’re considering replacement coverage, will your age, health, or underwriting requirements affect your eligibility or rates? 
• Have you compared the features, costs, and benefits of any alternative coverage you’re considering? 
• Would reducing coverage instead of cancelling it entirely better meet your needs? 
• Have you reviewed available educational resources and benefits information before making a final decision? 

Taking the time to answer these questions can help you make a more informed decision and avoid unexpected gaps in coverage. 

Final Checklist Before You Cancel FEGLI

Once you’ve decided to move forward, use this checklist to make sure you’ve completed the necessary steps: 

1. Confirm whether you are a current Federal employee or a Federal retiree. 
2. Identify which FEGLI coverage you want to cancel or reduce. 
3. Review Basic FEGLI, Option A, Option B, and Option C separately. 
4. If you have Option C (Family Coverage), consider how any changes could affect your spouse or eligible children 
5. Determine whether any assigned coverage could affect your ability to make changes 
6. Compare any alternative life insurance options you are considering. 
7. Make sure replacement coverage is approved and active before cancelling FEGLI. 
8. If you’re a current Federal employee, complete and submit SF 2817 through your agency’s human resources office. 
9. If you’re a Federal retiree, prepare and submit a signed written request to the OPM Retirement Center. 
10. Keep copies of all forms, letters, and confirmation records. 
11. Review and update your beneficiary designations if needed. 

Following these steps can help ensure your coverage changes are processed correctly and align with your long-term financial goals. 

Compare WAEPA Coverage Before Making Your Final FEGLI Decision

While cancelling FEGLI may make sense for some, it is a decision that deserves careful consideration. For Federal employees and retirees considering reducing or cancelling FEGLI, you may want to start by comparing your current FEGLI coverage to other available options before making a final decision.  

WAEPA has helped meet the life insurance needs of the Federal community for more than 80 years. Eligible Federal employees and retirees can apply for life insurance coverage through WAEPA, along with access to member benefits and resources designed specifically for public servants and their families. Because WAEPA focuses exclusively on the Federal workforce, many members turn to WAEPA when reviewing their life insurance needs at key milestones such as retirement, career changes, or family transitions. If you decide to pursue replacement coverage, make sure it is approved and active before reducing or cancelling FEGLI. 

Learn more about WAEPA life insurance options or apply today. 

Frequently Asked Questions About Cancelling FEGLI

Can I cancel FEGLI at any time?

Yes, most Federal employees and retirees can reduce or cancel FEGLI without waiting for Open Season

Do Federal retirees use SF 2817 to cancel FEGLI?

No. Federal retirees generally send a written, originally signed request to the OPM Retirement Center. 

What form do I use to cancel FEGLI as a Federal employee?

Current Federal employees generally use SF 2817 to cancel FEGLI coverage.  You may also see SF 2817 referred to as the “FEGLI waiver form,” since it is the form employees use to waive, reduce, or cancel their FEGLI benefits. 

Is SF 2823 the FEGLI cancellation form?

No. SF 2823 is used to designate or update FEGLI beneficiaries. It does not cancel coverage.

Can I cancel only Option B or Option C FEGLI?

In many cases, yes, you can reduce or cancel selected optional coverage rather than cancelling all FEGLI. Confirm the exact process with HR or OPM based on your status. 

Can I cancel assigned FEGLI coverage?

Assigned coverage may limit your ability to cancel certain FEGLI coverage. Active Federal employees should ask HR before submitting SF 2817.

Can retirees get FEGLI back after cancelling it?

Retirees should treat cancellation or reduction as potentially permanent because they may not be able to reenroll, increase, or restore FEGLI later.

Should I get replacement coverage before cancelling FEGLI?

Absolutely, if you still need life insurance. Make sure replacement coverage is approved and active before giving up FEGLI protection. 

Can WAEPA replace FEGLI?