Your FEGLI plan only stays with you while you remain a federal employee. If you decide to join the private sector, your coverage will end. However, most federal employees have the option to convert to a private plan. To receive FEGLI benefits into retirement, you'll need to maintain your federal job for five years leading into retirement. You'll get 31 days of free coverage even if you leave the federal government. If you die during your federal employment, your benefits will be awarded to the individual you named on the "Designation of Beneficiary" form SF 2823. It's important to name a beneficiary because if not, the federal government will follow a specific order starting with your spouse, children, and parents.