Q: Upon retirement from federal service I opted for life insurance, with monthly premium payments withdrawn from my monthly retirement checks. I now no longer need this insurance and would like to cancel it. OPM says they are not able to do this. How do I go about canceling this life insurance?
A: From the OPM: “Unless you have assigned your insurance, you may cancel it at any time. If you cancel your basic life insurance, you are canceling all your optional insurance as well. If you elected 50 percent or no reduction for your basic life insurance, you may cancel this additional coverage at any time. If you have Option A-Standard insurance, you may cancel it at any time. You may reduce (or cancel) the amount of your Option B-Additional and Option C-Family insurance at any time. To do so, please write to us telling us what you want to do.
If you have assigned your life insurance or have elected a living benefit, please call us to discuss any change you want to make in your coverage. Assignment and living benefits are situations that may prevent you from making changes.
U.S. Office of Personnel Management
Retirement Operations Center
P.O. Box 45
Boyers, PA 16017-0045
Be sure to give us your civil service retirement claim number (CSA number) and specify what action you want taken. Generally, the reduction or cancellation is effective at the end of the month in which we receive your written request. You will not receive a refund of any premiums paid through the end of the month in which we receive your request. However, if you are canceling Option C insurance in its entirety, the cancellation is retroactive to the end of the month in which you no longer had an eligible family member. (When you look for your premiums to change, remember that the annuity payment you receive on the first business day of the month pays annuity and insurance premiums for the preceding month.)”