About Beneficiaries
Basic Life, Option A-Standard,
and Option B-Additional
If you have assigned your insurance (see page 14), you may not
designate a beneficiary. Only your assignee(s) may designate
beneficiaries.
You do not need to name a beneficiary if you wish to have the
death benefits of your insurance paid in the order of precedence
noted below. If you designate, and are survived by a designated
beneficiary, the benefits will be paid to the beneficiary.
However, if you wish to prevent payment of your insurance
benefits to the estate of a beneficiary who survives you by only
a short period of time, you may add a "common disaster
clause" in your designation. The clause would specify that
your beneficiary is entitled to payment only if he or she
survives you for a period of time (not exceeding 30 days). If
there is no designated beneficiary surviving, or you did not
designate a beneficiary, the benefits will be paid in the
following order of precedence:
(1) Your widow or widower.
(2) Your child or children in equal shares, with the share of any
deceased child distributed among the descendants of that child.
(3) Your parents in equal shares or the entire amount to the
surviving parent.
(4) The duly appointed executor or administrator of your estate.
(5) Your next of kin under the laws of your domicile at the time
of your death.
If you have no survivor falling in category (1), the benefits
will be paid to the survivors failing in category (2), and so on,
as necessary.
To name a beneficiary or change a prior designation, complete a
new designation. In order to be valid, the designation must be:
(1) signed by you;
(2) witnessed in writing by two persons, neither of whom is a
beneficiary (a witness to the designation may not receive payment
as a beneficiary); and
(3) received by your employing office (for employees) or
retirement system (for annuitants and compensationers) before
your death.
Ask your employing office or retirement system for Standard Form
2823, Designation of Beneficiary. If you presently have a
designation on file (SF 2823 or SF 54) and wish no change, it is
not necessary to file a new SF 2823.
A designation of beneficiary is automatically cancelled
31 days after you cease to be insured. A transfer from
one agency to another without a break in service does not
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cancel your designation. If you reacquire insurance for ary
reason and still want your insurance benefits paid to a
dESignated beneficiary, you must file another designation witi
your current agency. If your insurance is continued when you
retire or while you are receiving workers'compensation, your
designation of beneficiary remains in effect.
After your employing office or retirement system receives your
designation, the duplicate copy will be returned to you. You
should attach this copy to the inside back cover of this booklet.
· If you name more than one beneficiary, be sure to specify
their respective interests in your insurance benefits; otherwise,
they will share equally.
- You must designate percentages (which add up to 100 percent) of
your insurance, not dollar amounts.
· If you have elected a full Living Benefit, your Basic
insurance is no longer available as a death benefit. Therefore,
if you have specifically designated your Basic, the deslgnated
beneficiary(ies) will not receive that payment. However, any
valid designation of optional insurance remains unchanged.
· If you have elected a partial Living Benefit (available
only to employees), only the remaining portion of your Basic
insurance is payable as a death benefit. Therefore, if you have
specifically designated your Basic, the designated
beneficiary(ies) will only receive payment of the remaining
portion of your Basic, not the full amount. However, any valid
designation of optional insurance remains unchanged.
- If a designated beneficiary dies before you do, his or her
rights and interests in your insurance benefits end
automatically.
a If you name more than one beneficiary, the share of any
beneficiary who may predecease you or become disqualified for any
reason from receiving a share of the benefits will be distributed
equally among the surviving beneficiaries, or entirely to the
survivor, if any.
o If the last designation form you execute before your death is
determined to be invalid for any reason, the next prior valid
designation form will be given full force and effect. If no such
prior form exists the proceeds will be distributed according to
the order of precedence. ,
- If you have a trust arrangement established under either your
last will and testament or under a formal Trust Agreement, you
may arrange to designate such trustee as your beneficiary.
Contact your employing office for assistance.
In the absence of a Designation of Beneficiary, SF 2823 (or SF
54), your beneficiary may, at the request of OFEGLI, be required
to furnish satisfactory documentation of his or her rights to
payment.
If any person otherwise entitled to payment as explained under
"About Beneficiaries" fails to make claim within 1 year
after your death, or if payment to such person within that period
is prohibited by Federal statute or regulation, payment may be
made in the order of precedence as if such person had died before
you.
If, within 2 years after your death, no claim has been made
by any person entitled to payment, payment may be made
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to a claimant who, in the judgment of the Office of
Personnel Management, is equitably entitled.
Option C-Family
You are the beneficiary under Option C-Family. No designation of
beneficiary is permitted. Payment will be made in a lump sum.
Should you die before receiving payment of a claim for the death
of an insured family member who predeceased you, payment of
Option C-Family death benefits will be made to the person (or
persons) to whom your Basic Life insurance benefits are payable.
Legal Disputes
Any actions at law or in equity, other than those set forth under
the Accidental Death and Dismemberment provision (see page 13)
must be brought within 6 years from the expiration of the time
within which proof of claim is required.
In any actions at law or in equity, the claimant shall be limited
in the amount of recovery to the insurance benefit claimed, plus
a reasonable amount of aftorneys'fees as set by the court. The
term "insurance benefit claimed" is limited to (a) the
amount of the life insurance benefit, (b) 2 years' interest from
the date of death at the rate permifted in the contract, and (c)
post-judgment interest at the statutory rate allowed on judgments
in the applicable state.