$232,000 Denied FEGLI Claim Successfully Resolved by Our Life Insurance Law Firm
If you’ve lost a loved one covered under the Federal Employees' Group Life Insurance (FEGLI) program, dealing with a denied or delayed death benefit claim can add frustration and uncertainty to an already painful situation. Our life insurance law firm is proud to announce the successful resolution of a $232,000 denied FEGLI claim, ensuring that the rightful beneficiary received the compensation they were owed. This outcome underscores the importance of experienced legal representation in federal life insurance matters—particularly when disputes or procedural issues threaten your access to benefits.
How FEGLI Works and What Makes It Unique
FEGLI provides life insurance coverage for federal employees and is one of the largest group life insurance programs in the world. Unlike private or state-administered life insurance plans, FEGLI is governed exclusively by federal law. This distinction plays a major role in how claims are reviewed, what rules apply, and how beneficiaries are determined. For example, while many state laws impose restrictions or automatic revocation statutes upon divorce, those do not apply to FEGLI. If a federal employee designates a beneficiary—regardless of whether that person is later divorced, estranged, or even unknown to the family—that designation remains legally binding unless it was formally changed in writing. This means that outdated beneficiary designations can still control the payout, even decades later.
Common Reasons FEGLI Claims Are Denied or Delayed
While FEGLI is supposed to provide financial support to families following the death of a federal employee, various legal and procedural issues can cause delays or denials. Some of the most frequent reasons include: Disputes over the beneficiary designation, where two or more individuals claim to be entitled to the benefits; no valid beneficiary listed, which triggers the statutory order of precedence; or the named beneficiary is deceased, and no successor designation was filed. Additionally, FEGLI claims can be denied due to issues such as the insured opting out of coverage, the policy lapsing due to non-payment or employment status changes, or documentation errors during the claims process. In some instances, claimants are unaware that coverage was terminated due to discontinued pay or retirement decisions. In these cases, confirmation of the insured's eligibility and policy status may require legal intervention.
FEGLI’s Statutory Order of Precedence
If there is no designated beneficiary on file or the named beneficiary is ineligible, FEGLI will disburse the death benefit according to a federally mandated order of precedence. This sequence is strictly followed and is unaffected by state probate law or familial intentions. The priority is:
Designated beneficiary on file with OPM
Surviving spouse
Surviving children
Surviving parents
Executor or administrator of the estate
Next of kin
If no claim is made within four years, the funds revert to FEGLI (escheat).
This order of precedence can result in heartbreaking outcomes if the deceased failed to update their designation—especially in cases where ex-spouses or estranged family members remain on file. Our attorneys frequently litigate disputes in which competing claims arise and OPM has not clearly resolved who is entitled to the benefit.
Understanding Delayed FEGLI Claims
A claim is considered delayed when it remains unpaid 30 days after submission. The process typically begins when the beneficiary submits a death certificate to the Office of Personnel Management (OPM). In response, OPM issues Form FE-6, which must be completed and returned to the insurer. Additional documentation may be requested, such as employment verification or confirmation of unpaid premiums. If documentation is incomplete or contested, the claim process can stall indefinitely. When this happens, hiring a life insurance attorney can dramatically accelerate resolution and avoid wrongful denial.
When to Involve a Life Insurance Lawyer in a FEGLI Claim
Legal assistance becomes critical when you face a denied claim, a delayed decision, or a contested beneficiary situation. Our firm has a track record of recovering denied FEGLI benefits by proving valid entitlement, correcting errors in documentation, and litigating when federal agencies fail to process claims properly. We also handle interpleader lawsuits—cases where the insurer deposits the benefit in court due to multiple competing claims—and accidental death and dismemberment (AD&D) claim denials, which often accompany FEGLI disputes. Given the complexity of federal benefit regulations and the limited appeal opportunities available, time is of the essence in these cases.
We Fight Denied FEGLI Claims Nationwide
If your FEGLI claim has been wrongfully denied, delayed, or challenged by another claimant, our legal team is ready to help. We have successfully resolved disputes involving deceased federal employees, disputed designations, and denied claims based on outdated or incorrect eligibility information. Our attorneys understand how to navigate the OPM’s internal processes and compel insurers to comply with federal law. The earlier we get involved, the better your chances of securing the full death benefit without unnecessary delay.
FAQ: Denied FEGLI Life Insurance Claims
What makes FEGLI different from private life insurance? FEGLI is governed by federal law, not state law. That means state-based legal doctrines—such as automatic revocation of beneficiary status after divorce—do not apply. Only the named beneficiary on file with OPM will receive the benefit, even if the designation is outdated.
Can FEGLI benefits go to an ex-spouse? Yes, if the ex-spouse was named as the beneficiary and the federal employee never changed the designation. Federal law honors the last designation on file, regardless of relationship status at the time of death.
What happens if no beneficiary was named under a FEGLI policy? The benefits will be paid according to a federal order of precedence: spouse, then children, then parents, and so on. If no one makes a claim within four years, the funds revert to the government.
Why was my FEGLI claim denied due to coverage issues? Federal employees may opt out of FEGLI basic coverage or lose eligibility due to retirement, discontinuance of pay, or administrative errors. Denials often stem from misunderstandings about whether coverage was active at the time of death.
Can I appeal a denied FEGLI claim? Yes, but it requires knowledge of federal regulations and often involves communication with OPM and MetLife (the FEGLI underwriter). Our firm specializes in handling these appeals and resolving them efficiently.
What if multiple people claim the same FEGLI benefit? In such cases, the insurer may file an interpleader and let the court decide. We represent claimants in interpleader actions and fight to prove rightful entitlement under the law.
How long does it take to get paid under a FEGLI policy? Most valid claims are processed within 30 days. If it takes longer, there is likely a documentation issue or legal dispute. We intervene quickly in delayed cases to get them back on track.
Are FEGLI claims paid in suicide cases? Yes, unlike many private insurers, FEGLI does not exclude death benefits for suicide. This makes it a vital resource for families who have experienced a tragic loss.
Does FEGLI cover accidental deaths? Yes, if the employee had optional AD&D coverage. However, these claims are often denied due to alleged exclusions or contested circumstances, which we can challenge on your behalf.
Can legal representation make a difference in a denied FEGLI claim? Absolutely. We have helped families recover hundreds of thousands of dollars by contesting wrongful denials and clarifying legal entitlements under federal regulations.