Even though FEGLI is a government-administered life insurance program, that doesn’t mean your claim will be paid automatically. In fact, FEGLI claims are denied more often than most beneficiaries realize. Whether it's due to missing forms, outdated paperwork, or unnoticed lapses in coverage, these denials catch families off guard, often in their most vulnerable moments. If you need California FEGLI claim lawsuit guidance call us.
Here are the most common reasons FEGLI claims are denied, based on real situations we’ve handled.
Coverage lapsed after retirement or leave
The most frequent denial we see involves policies that quietly lapsed after retirement or long-term leave. Many federal employees assume their FEGLI premiums will continue to be deducted from their annuity or paycheck. But if continuation paperwork isn't filed or payments aren’t properly processed, coverage ends. In most cases, no notice is sent.
We handled a claim for a retired Army Corps of Engineers worker whose daughter was shocked to learn that his policy had lapsed two years before his death. He believed he was still covered. It turned out OPM had failed to process the required election form. We gathered his original paperwork and correspondence and pushed for reconsideration. The benefit was eventually paid.
Outdated or incorrect beneficiary forms
FEGLI honors only the last valid Designation of Beneficiary form. If the insured never updated it after a divorce or remarriage, the benefit will still go to the person listed—even if it’s an ex-spouse who’s been out of the picture for years.
We represented a federal IT contractor’s current wife, who received nothing because her husband had never replaced the beneficiary form from his first marriage. Despite clear intent and decades together, the law required OPM to pay the ex-wife. There was no legal workaround. This happens more than people realize.
No beneficiary form on file
When there’s no form on record, OPM applies the standard federal order of precedence: spouse, then children, then parents, then executor, then next of kin. The problem is that many insureds intend to leave the money to someone outside that list and simply forget to submit the form.
A client in California had lived with her partner for over a decade. After his death, she filed the FEGLI claim only to find out the money had gone to his estranged adult son. Since no form existed, there was no way to challenge the distribution.
Suicide within two years of coverage
FEGLI includes a two-year suicide exclusion after new enrollment or reinstatement. If the insured dies by suicide within that window, the claim is often denied regardless of prior payment history.
In one case, a reinstated federal employee died just over a year after returning to service. His wife had no idea the exclusion existed. We reviewed the documentation and found that OPM had improperly delayed his reinstatement date. After arguing that the two-year clock should have started earlier, we secured a partial payment.
Alleged misrepresentation
FEGLI claims may be denied if the insurer believes the policyholder omitted material facts when applying for or reinstating coverage, especially within the contestability period.
A Department of Homeland Security employee’s family came to us after a stroke-related death led to a denial. The claim had been rejected because he failed to mention a prior cardiac issue. However, the condition had no connection to his cause of death. We submitted medical records and supporting statements and were able to reverse the denial.
Interpleader disputes involving multiple claimants
When two or more people claim to be the rightful beneficiary—such as a current spouse and an ex-spouse—MetLife or OPM may file an interpleader lawsuit and deposit the benefit with the court. This forces the claimants to litigate the matter, often in federal court.
We recently represented a claimant in Georgia whose partner had submitted an updated form, but the signature was disputed. Competing claims came from the decedent’s brother and ex-wife. After filing motions and introducing additional records, our client was awarded the benefit, but it took almost a year to resolve.
Administrative mistakes and lost paperwork
Not every denial is due to something the insured did wrong. Sometimes the government just misplaces documents. We’ve seen cases where designation forms were submitted but never made it into the official file. In others, premiums were deducted incorrectly or not applied at all.
In one case, a Department of Agriculture worker updated his beneficiary form and hand-delivered it to HR. After his death, OPM claimed they never received it. Fortunately, the family had a timestamped copy. We used metadata from the scan to prove submission. The benefit was released after weeks of back-and-forth.
How to respond to a denied FEGLI claim
A denial is not the end of the road. Most claimants don’t realize that FEGLI appeals are possible—and often winnable. Whether the denial involved a lapse in coverage, a disputed beneficiary, or a supposed misrepresentation, an experienced life insurance attorney can review the facts, prepare the right documentation, and challenge the decision.
Our firm has handled FEGLI appeals nationwide. We’ve reversed denials involving everything from missing forms to federal interpleader lawsuits. We know how to deal with OPM, MetLife, and the rules that govern federal life insurance.
Call us at 800-330-2274 if your FEGLI claim was denied. We’ll review the case for free and let you know exactly how we can help recover the benefit your loved one intended you to have.