Federal employees have access to valuable benefits designed to provide financial protection throughout their careers. But even with federal benefits, you may have financial risks that aren’t fully covered—particularly if you die unexpectedly or an illness or injury prevents you from working.
That’s where life insurance and long-term disability insurance for federal employees can play an important role.
Life insurance helps protect the people who depend on you if you die. Long-term disability insurance can help protect your income if an illness or injury prevents you from working.
Together, these types of coverage can provide more well-rounded financial protection for you and your family.
Consider two questions:
What would happen to my family financially if I died?
What would happen to my household if I couldn’t work because of an illness or injury?
Life insurance and long-term disability insurance address these two risks differently.
For federal employees, having both types of supplemental coverage can help address potential gaps between federal benefits and the financial protection your household may need.
| Financial Risk | Group Term Life Insurance | Group Long Term Disability Insurance |
|---|---|---|
| Death | ✓ | |
| Illness prevents you from working | ✓ | |
| Injury prevents you from working | ✓ | |
| Helps protect family finances | ✓ | ✓ |
Life insurance isn’t only about replacing income. It can help preserve your family’s financial stability during one of life’s most difficult moments.
If you die, your family may still have everyday expenses, debts and long-term financial goals. Life insurance can provide financial support for needs such as:
Many households depend on two incomes. If one income disappears unexpectedly, life insurance can help provide financial support so surviving family members can continue meeting everyday expenses.
Life insurance can help support long-term goals, including a child’s education, even if you’re no longer there to provide financial support.
Medical bills, funeral expenses and burial costs can create a sudden financial burden. Life insurance can help your family manage these expenses.
Credit cards, auto loans and student debt can create additional financial pressure after a death. Life insurance proceeds can help families address outstanding debts and reduce financial hardship.
For many families, a home is both a major asset and a major financial obligation. Life insurance proceeds can help pay off or reduce a mortgage.
Most people assume disabilities come from workplace accidents or sudden injuries. In reality, they’re far more likely to come from everyday health issues.
people will experience a disability before retirement 2
Conditions like cancer, heart disease, and chronic illnesses are far more likely to interrupt your ability to work than an unexpected injury. This makes disability insurance less of a “what if” and more of a practical safeguard.
Federal benefits provide an important foundation for financial protection, but they may not cover every expense if an illness or injury keeps you from working for an extended period.
Federal employees may have access to sick leave and, if eligible, FERS Disability Retirement benefits. However, these resources may only replace a portion of your income, depending on your individual circumstances. FERS Disability Retirement benefits are calculated according to federal rules, and benefit amounts can also be affected by Social Security disability benefits and other factors.
The important thing is to understand what your existing benefits would actually provide and how that compares with your ongoing financial needs.
Consider this: If you couldn’t work for an extended period, would your current benefits provide enough income to cover your everyday expenses and financial obligations?
Here are some of the most common myths—and the facts you should know
I don’t need Disability Insurance because I have coverage through work.
The FERS retirement disability benefit is taxable and pays 60% of your salary for the first 12 months and then 40% until retirement eligibility.
My Federal benefits will fully protect my income if I become disabled.
Without traditional disability coverage, Federal Employees rely on sick leave and retirement disability, which can fall short.
I don’t need it because I don’t work in a “dangerous” job.
Most disabilities are caused by illness—not accidents—meaning they can happen to anyone, regardless of occupation.
If you’re unable to work, disability insurance helps protect:
Mortgage or
rent payments
Daily living
expenses
Support for
your family
Long-term savings
and retirement
Life insurance and disability insurance protect against different financial risks.
Life insurance helps protect the people who depend on you if you die.
Long-term disability insurance helps protect your income if an illness or injury prevents you from working.
Having both can create a more comprehensive approach to protecting your family’s finances.
GEBA combines Group Term Life Insurance and Group Long-Term Disability Insurance through one application, allowing eligible federal employees to consider both types of supplemental coverage together.
Your financial responsibilities can change throughout your career. Consider reviewing your coverage when you:
Changes in your income, family responsibilities, mortgage, debt and retirement plans may affect the amount of financial protection your household needs.
If you died: Would your family have enough financial resources to manage everyday expenses, debt, housing and long-term goals?
If you couldn’t work: Would your current benefits and savings provide enough income to maintain your household’s financial obligations?
Review your federal benefits, existing insurance coverage and financial responsibilities. This can help you determine whether you may have gaps in your protection.
For eligible federal employees, GEBA Group Term Life Insurance and Group Long-Term Disability Insurance can help address both risks through supplemental coverage.
Federal employees may want to consider supplemental disability insurance because federal benefits may not fully replace their income if an illness or injury prevents them from working. The right amount of coverage depends on individual circumstances and existing benefits.
Life insurance provides financial protection in the event of death, while long-term disability insurance is designed to help protect income if an illness or injury prevents you from working.
FEGLI is life insurance coverage. It does not serve the same purpose as long-term disability insurance, which is designed to protect income when an illness or injury prevents you from working.
The two cover different financial risks. Life insurance can help protect your family financially after your death, while disability insurance can help protect your income if you become unable to work because of an illness or injury.
Consider reviewing your coverage after major life events such as marriage, buying a home, having children or preparing for retirement. You may also want to review your coverage if you haven't evaluated it in several years.
GEBA offers Group Term Life Insurance and Group Long-Term Disability Insurance for eligible federal employees. Visit GEBA.com/Combo to explore supplemental coverage options.
Your federal benefits are an important part of your financial plan, but it’s worth considering whether you have enough protection in place for both your family and your income.
Life insurance can provide financial support for your loved ones if you’re no longer there, while long-term disability insurance can help replace a portion of your income if an illness or injury keeps you from working.
GEBA makes it easier to consider both, with Group Term Life Insurance and Group Long-Term Disability Insurance available through one convenient application.
Explore your GEBA coverage options and find the protection that fits your needs.
How Can We Serve You Today? Our Knowledgeable Member Services Staff Can Help!
Coverage is subject to eligibility requirements, limitations, exclusions, costs and other policy provisions. Coverage is not available in all states. Before applying, review the applicable policy information for details regarding features, costs, eligibility, renewability, limitations and exclusions.
Sources: Council for Disability Income Awareness, “Hey Gen X: Time to Protect Your Income,” July 2024; Social Security Administration, Disability Benefits, Publication No. 05-10029, February 2025.
1 “Hey Gen X: Time to Protect Your Income,” Council for Disability Income Awareness, July 2024
2 Disability Benefits (Publication No. 05-10029), Social Security Administration, February 2025
Group Long Term Disability Insurance underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 on Policy form GMR under policy G-29344-0. For information including features, cost, eligibility, renewability, limitations, and exclusions, visit www.GEBA.com/LTD.
NEW YORK LIFE and the NEW YORK LIFE Box Logo are trademarks of New York Life Insurance Company.
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