When the government shuts down, federal workers face more than lost paychecks they fear losing coverage. The big question: Does your insurance vanish during a furlough? The short answer is no, but some details matter.

In this blog, we explain how furlough federal employee health insurance and life insurance behave during a shutdown, how premiums work, and what temporary lapses can mean.

FEHB Coverage During Unpaid Furlough

The Federal Employees Health Benefits ( FEHB ) program remains active for most furloughed employees. Even if your pay stops, your coverage does not.

According to OPM:

• FEHB continues for up to 365 days in nonpay status.
• The government share of premiums still gets paid.
• Your own share is deferred, not cancelled.

You can:

• Pay now directly to your agency, or
• Let premiums accumulate and repay them once back on duty.

If your agency delays payment, your plan still covers you. When work resumes, the backlog of premiums is deducted from your future checks. So your plan stays active, but your wallet feels it later.

The continuation of federal employee benefits during furlough prevents gaps in healthcare access even when funding stops.

Life Insurance Protection

Life insurance also stays intact under FEGLI, Federal Employees’ Group Life Insurance.
If you’re furloughed, your life insurance continues for 12 months at no cost.

• No premiums are due while you’re in nonpay status.
• Once pay resumes, back premiums are withheld from future paychecks.
• Coverage never stops unless the nonpay period exceeds 12 months.

This safeguard ensures life and health coverage protection in government shutdowns.
Even without active pay, your beneficiaries remain protected.

Premium Payment Options and Lapse Risks

When income halts, premium handling becomes the main stress point.
Let’s break it down.

Payment Choices

You have two paths:

1. Pay premiums now directly to your agency using out-of-pocket funds.
2. Accumulate premiums until you return to work.

If you pick option 2, be prepared for retroactive deductions the agency collects what’s owed from future checks.

Temporary Lapse Risks

Normally, FEHB coverage doesn’t lapse.
But delays in agency processing can cause:

• Billing confusion
• Large deductions later
• Paperwork errors for employees changing plans before furlough

While the benefit continues, your financial impact piles up silently. That’s why communication with HR is key.

Dental, Vision & Other Employee Benefits

Health and life insurance aren’t the only ones affected.

Dental and Vision (FEDVIP)

FEDVIP plans (dental and vision) continue throughout the shutdown. Premiums pause temporarily and get withheld later, same as FEHB. You can’t cancel these plans outside Open Season unless you face a qualifying life event.

Flexible Spending (FSAFEDS)

If you fund a health or dependent care FSA, deductions stop when pay stops. Claims incurred while in nonpay status may not be reimbursed until you resume pay. Remaining allotments adjust when you return.

Long-Term Care (FLTCIP)

Coverage under the Federal Long-Term Care Insurance Program continues if you pay premiums directly. If payments are missed, the insurer can bill you directly during furlough. These secondary benefits mirror the main rule: coverage continues, but payments resume later.

How to Protect Your Coverage During Furlough

Being prepared matters as much as being insured.
Follow these steps to avoid surprises:

1. Contact your HR office to learn how premiums will be handled.
2. Pay your share in advance if possible to avoid big deductions later.
3. Track your pay stubs and keep copies of benefit statements.
4. Report any life events like marriage or birth, even during the shutdown.
5. Check carrier communications for temporary billing instructions.

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What Happens After a Furlough Ends

When pay resumes, agencies start untangling the premium backlog. You’ll notice deductions catching up in your next few paychecks.

Repayment of Deferred Premiums

If you choose to delay premium payments, your agency will now recover the amounts owed.

• Most agencies take the full amount from one paycheck if the total is small.
• Larger totals get split across multiple pay periods to reduce financial strain.
• Your FEHB, FEDVIP, and FEGLI premiums are all reconciled this way.

This process ensures your insurance account is current again without coverage gaps.
Still, it can squeeze your take-home pay for a while. To avoid surprises, ask payroll for an itemized breakdown before your first post-furlough check. That way, you can plan for reduced net pay and budget accordingly.

Handling Missed Voluntary Deductions

Some smaller deductions, like union dues or charity contributions, might not automatically resume.
You may need to re-authorize them once regular pay restarts. If in doubt, verify through your agency’s HR portal. The main lesson: not every payroll item restarts by default. Check your benefit summary after the first full pay cycle.

When Coverage Could Actually End

Coverage can end only under rare conditions:

• You stay in nonpay status over 365 days (for FEHB) or over 12 months (for FEGLI).
• You voluntarily cancel coverage during Open Season.
• You leave federal service altogether.

Even then, temporary continuation of coverage (TCC) may be available for up to 18 months if you pay both shares of the premium. This safety net means total benefit loss is uncommon, but long furloughs can test the limits.

Managing Financial Stress During Shutdowns

A furlough can strain savings. But small proactive moves help you protect both your wallet and your wellness.

• Build an emergency fund equal to one month of premiums.
• List automatic debits, pause or adjust them until pay resumes.
• Contact your insurer if direct billing becomes an option.
• Review your coverage once things normalize; you might find duplicate or unused plans.

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Conclusion

A government shutdown may pause paychecks, but it doesn’t erase protection. Your furlough federal employee health insurance and life benefits remain active through built-in continuation rules. You simply repay your share later.

Still, every furlough reminds us to stay ready, know our plan details, talk to HR, and keep an emergency cushion. The policy safety net holds, but your preparation keeps you steady.

FAQs

Do furloughed employees keep health insurance?

Yes. FEHB coverage continues for up to 365 days while you’re in nonpay status. The government keeps its share; your share is collected later.

How long do federal employees keep their health insurance after quitting?

When you leave federal service, coverage stops on the last day of the pay period. You can continue it temporarily under TCC for 18 months by paying both shares.

What happens if a federal employee is furloughed?

You’re placed in unpaid status but remain employed. Benefits like health and life insurance stay active; you’ll owe the missed premiums when back on duty.

Do you still get benefits if you are furloughed?

Yes. FEHB, FEDVIP, FEGLI, and most ancillary programs continue automatically. The cost is deferred, not lost.

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References What happens to employees’ health and life insurance benefits during a furlough? – OPM.gov. (n.d.). U.S. Office of Personnel Management. https://www.opm.gov/frequently-asked-questions/pandemic-faq/employees/what-happens-to-employees-health-and-life-insurance-benefits-during-a-furlough/