If you have not assigned your life insurance, your Basic, Option A and Option B benefits FEGLI insurance will be payable in the an order of precedence.
1. Your designated beneficiary(ies).
2. Your widow or widower.
3. Your child or children in equal shares, with the share of any deceased child distributed among the descendants of that child.
4. Your parents in equal shares or the entire amount to the surviving parent.
5. The duly appointed executor or administrator of your estate.
6. Your next-of-kin under the laws of the state where you lived at the time of death.
You do not need to name a beneficiary if you are satisfied to have your life insurance benefits paid as shown in items (2) through (6) above.
If more than one beneficiary is named, the share of any beneficiary who dies before you die is distributed equally among the surviving beneficiaries or entirely to the survivor, if any survive. If none of the beneficiaries survive you, payment reverts to the order of precedence items (2) through (6).
The order of precedence can be superseded, but only if a court has issued a decree of divorce, annulment or legal separation and stipulated that FEGLI benefits be paid to someone else. However, to be effective, the decree must be on file with the government before the death of the insured person. Decrees affecting retirees must be sent to OPM. In addition, retirees will have to complete an Assignment of Life Insurance form RI76-10 to make the assignment official.
Note: If you have Option C-Family insurance, you are the beneficiary. No designation is permitted under the law. Payment will be made to you in a lump sum. If you should die after the death of an insured family member but prior to payment of your claim, payment will be made to the person (or persons) to whom your Basic life insurance benefits are payable,