Your federal life insurance will terminate if your entitlement to annuity benefits ends. For example, if you are a disability retiree under age 60 and you are found recovered or restored to earning capacity, your disability annuity and life insurance coverage will end. You do not have a 31-day extension of coverage and may not convert the life insurance to an individual policy.
If you are a disability retiree whose annuity terminated as described above, you will retain your life insurance coverage if you are entitled to and apply for an immediate discontinued-service annuity. You will receive complete information concerning your right to do so if your disability annuity terminates.
Also, if you are under age 60 and your disability annuity is reinstated due to loss of earning capacity or a recurrence of the disability for which you retired, you will be given an opportunity to have your life insurance coverage reinstated. Only coverage of the type and up to the amount you had in effect at the time your disability annuity was terminated can be reinstated. If you are entitled only to a deferred annuity after your disability annuity terminates, you cannot retain your life insurance coverage as a retiree and you cannot convert it to an individual policy. Under certain conditions, your annuity and life insurance coverage will terminate if you are reemployed in the federal service.