5 Frequently Asked Questions About Group Term Life Insurance for Federal Employees
Group Term Life Insurance is used to replace part of the entire economic value of your life for a limited amount time or a specific “term.” In exchange for premium payments, your family will receive a death benefit when you die. If you work for the federal government, you may be eligible for Group Term Life Insurance for Federal Employees provided by WAEPA. In this article, we give you answers to 5 frequently asked questions about this offering;
Can I keep this insurance if I retire or cease working for the federal government?
Once insured, you won’t lose the coverage if you resign or retire from your federal civil service position. There’s no minimum amount of years required for the coverage, and your coverage can continue to age 85 as long as you keep paying your premiums. Age is the only factor considered when determining rate changes or automatic coverage.
I am retired, am I eligible to apply for coverage?
Group term life insurance for federal employees is available for individuals who are below 70 years of age. This means that you can apply for insurance coverage at any time before your 70th birthday.
Can I carry both FEGLI and WAEPA coverage?
Yes. When you become a WAEPA member, you can hold both coverage policies simultaneously if you choose. WAEPA is an independent, non-profit organization that’s not affiliated with the federal government. As such, our life insurance benefits are separate from the OPM federal plan.
What are the rates? Are they subject to change?
The rate is calculated per thousand dollars and increases when you reach a new age band, just like FEGLI. Coverage automatically renews yearly. Similar to the FEGLI options A, B, and C, the premium rates automatically increase every five years. Also, the maximum amount of coverage begins to decrease at age 60, but the price of premiums may not be affected. Your coverage ends on your 85th birthday.
Can I pay premiums directly from my federal paycheck?
Yes, your payroll office can deduct an allotment directly from your paycheck. At this time, group term life insurance premiums are only deducted on a post-tax basis. In addition to this payment option, you can also make an automatic monthly payment from your checking account or paper invoice on a quarterly, semi-annual or annual basis.
If you’re a current or retired federal employee, become a WAEPA member today and enjoy our affordable monthly rates. This plan can be your dedicated life insurance policy or a supplement to your existing coverage.
This article is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.