Before you make any decision, make sure to check out the death and disability benefits that are inherent in FERS, FECA, and Social Security (since you said you're a new hire, I'm assuming you're under FERS, but there are other retirement plans as well, such as for law enforcement officers). In addition to FEGLI, your surviving spouse and dependents can receive substantial benefits under FERS, FECA, and Social Security with the amounts depending on how you die, your age, your salary, the number of dependents, and so on.
I'd say that, generally, the benefits provided under FEGLI Basic combined with FERS and FECA and Social Security are more than adequate to cover most people and situations. In fact, a lot of us find that we're worth quite a bit more dead than alive! I would not get anything beyond FEGLI Basic, it's likely overkill. I'd be inclined to cancel the policy with New York Life and just stick with the federal benefits, provided you plan on remaining employed with the federal government for a long time.