Federal Life Insurance Transparency Act - Requires payments to beneficiaries of death claims under the federal employees' group life insurance program to be made in a lump sum, unless the insured or the beneficiary elects an alternative form of payment (which may be in addition to or instead of a lump-sum payment), as prescribed by the Office of Personnel Management (OPM).
Permits the insured employee to elect such an alternative form of payment; but allows a beneficiary (or beneficiaries) to elect settlement by any other form of payment available to the employee, regardless of the employee's election.
Applies this Act only to employees who first become insured in any calendar year beginning at least three months after enactment of this Act.