If you are not eligible to (or do not want to) continue your FEGLI coverage into retirement, you must either drop the coverage or convert it to an individual policy. The policy will stay in force for 31 days following retirement at no cost to you.
If you wish to convert to an individual policy, to have continuous insurance protection you have to apply for the individual policy and pay the first premium to the insurance company within the 31-day temporary extension of coverage period. You must pay the full amount of the premiums yourself. The actual amount will be based on the dollar amount of the insurance you decide to convert, your age and your risk category. (Risk is based on an assessment of your medical condition and habits, for example whether you are a smoker.)
Note: If you decide to convert some or all of your current coverage to an individual policy, you will not be required to take a medical exam to qualify.