They can participate in federal group life insurance (a federal group term program called FEGLI), and they have to pay premiums.
The 174K is a 1x salary death benefit— base level pay similar to many US emp benefits out there. Most US corporations pay 2x or more automatically— before any additional life insurance is purchased.
Basically this shit is normal.
FEGLI is what Federal Employees get. So no it's not normal. If it was normal all Federal employees would get 174k extra when they die on the job. They don't. So what you're talking about is not normal. It's above and beyond what the normal folks get. Which is sort of the point of all this. And frankly Federal employees get better benefits than most.
Now 174,000 is a drop in the bucket compared to most government spending so I get that it's not a "big deal" but it's also the problem. They aren't spending their money. They are spending our money and they have no sense in the fact that their spending has real life consequences on the public. It's why we are in the crazy inflation crisis that we currently find ourselves in.
It's like if I want to give money to a charity. That's great but what if instead of my money I got to give your money to charity. Well it would make it a whole lot easier to donate.