When it comes to life insurance for federal employees, two names consistently stand out—WAEPA (Worldwide Assurance for Employees of Public Agencies) and FEGLI (Federal Employees’ Group Life Insurance). These programs offer distinct advantages depending on your financial goals, family situation, and long-term planning. In this comprehensive comparison, we’ll break down the differences between WAEPA and FEGLI to help you decide which life insurance policy offers better value.
What is FEGLI?
FEGLI is the default life insurance program for federal employees, administered by the U.S. Office of Personnel Management (OPM). It provides basic group term life insurance with the option to purchase additional coverage.
Key features of FEGLI:
- Automatically enrolled upon federal employment (Basic coverage)
- Optional coverage: Option A (Standard), Option B (Multiple of salary), Option C (Family)
- Premiums increase with age every five years
- No medical exam required for enrollment
What is WAEPA?
WAEPA is a nonprofit organization offering group term life insurance and other benefits to federal employees and their families. It partners with New York Life Insurance Company to provide coverage, which is portable, meaning you can keep it even if you leave federal service.
Key features of WAEPA:
- Up to $1.5 million in coverage available
- Coverage doesn’t end when you leave federal employment
- Medical underwriting may be required
- Spouse and dependent coverage available
- Premiums may be lower for certain age groups compared to FEGLI
Comparing WAEPA vs FEGLI: Cost and Coverage
1. Premium Costs
One of the biggest differences between FEGLI and WAEPA lies in their pricing models. FEGLI premiums are structured in five-year age brackets (e.g., 35–39, 40–44), and can become significantly more expensive as you age.
WAEPA also increases premiums with age, but their rates are generally more competitive, especially for employees under 50. For many, WAEPA is the more affordable option in the long run.
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2. Coverage Amount
FEGLI’s maximum coverage is tied to your salary—typically up to 5 times your annual pay under Option B. WAEPA, however, offers up to $1.5 million in coverage regardless of salary.
This makes WAEPA a better choice if you’re looking for higher, customizable life insurance coverage.
3. Portability and Flexibility
WAEPA’s portability gives it an edge. You can retain your policy even if you switch careers, retire early, or leave federal service—something FEGLI does not allow easily without converting to an individual policy, which can be costly.
If long-term coverage is important to you, especially post-retirement, WAEPA may provide better value.
Pros and Cons Overview
| Feature | WAEPA | FEGLI |
|---|---|---|
| Cost | Usually lower | Increases sharply with age |
| Max Coverage | $1.5 million | Tied to salary |
| Portability | Yes | Limited |
| Spouse/Dependent | Yes | Yes (Option C) |
| Enrollment | Requires health info | Automatic with no exam |
| Underwriting | Required for most | None for basic and initial optional coverage |
Who Should Choose WAEPA?
- Young federal employees seeking high coverage at low premiums
- Healthier individuals who qualify for preferred underwriting
- Those who want coverage beyond federal employment
- Federal employees planning early retirement or career change
Who Should Stick with FEGLI?
- Employees who want automatic coverage with no medical questions
- Older federal employees who are not eligible for low-cost WAEPA rates
- Those who value the simplicity of payroll deductions for premiums
- People with pre-existing conditions who may not qualify for WAEPA
Final Verdict: Which Offers Better Value?
WAEPA often offers better long-term value for federal employees, especially those in good health and under age 50. With lower premiums, higher coverage potential, and portability, WAEPA can fit into a more dynamic financial plan.
However, FEGLI remains a reliable and simple choice, especially for employees who want automatic enrollment without underwriting, or for those with health issues that could raise private insurance rates.
For the best of both worlds, some employees choose to combine both plans—keeping basic FEGLI while purchasing additional coverage from WAEPA.
Conclusion
Choosing between WAEPA and FEGLI isn’t a one-size-fits-all decision. You need to evaluate your age, health, salary, and career plans to determine which offers the best value for your needs.
✅ Tip: Use both providers’ online calculators to compare premium costs and coverage scenarios before making your decision.
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