Assignment of Life Insurance
Effective 10/3/94, Federal employees can assign their Basic, Option A and Option B insurance
to another person(s), firm(s), or trust(s); Option C is excluded. The assignment of benefits
transfers ownership of the FEGLI coverage to the assignee(s). The insured no longer has
control over his/her insurance coverage and can no longer designate beneficiaries.
Assignment is irrevocable. Either all or none of the insurance can be assigned. Assignment
does not have to be to the same person or firm. Assignments must be made in percentages of
total insurance versus an assignment of Basic Insurance to one person and Option A to
another. Additionally, terminally ill employees can assign their insurance to a Viatical
Settlement Firm in exchange for cash (approx. 60% - 85% of the face value of the coverage).
Life Expectancy is usually 24 months or less for a Viatical Settlement Agreement.
