Is FEGLI Worth It? A WAEPA Comparison For Federal Employees

Many Federal employees keep FEGLI Basic and explore WAEPA for additional, portable coverage, that you can keep if you change jobs or retire. For most Federal employees, FEGLI is the starting point for life insurance. Enrollment often happens automatically, which makes it easy to accept coverage without a second thought. Over time, many Feds begin to take a closer look at their benefits and ask a more important question: Is FEGLI worth it?

This question comes down to value for your unique needs, not surface-level costs. “Worth it” means having the right amount of coverage for your family, at a price that fits your budget, with flexibility that supports your long-term plans. FEGLI can be a great option, but it may not always meet all your needs as your career and responsibilities grow.

Let’s take a closer look at what FEGLI is, how it works, and how it compares to WAEPA’s life insurance offerings.

What is FEGLI, and How Does it Work?

The Federal Employees’ Group Life Insurance (FEGLI) program is a group term life insurance plan offered to eligible Federal employees. This type of life insurance coverage does not build cash value. Rather, it’s temporary coverage, designed to provide financial protection for your beneficiaries if something happens to you during the coverage period.

Most employees are automatically enrolled in FEGLI Basic coverage when they start Federal service. The Basic Insurance Amount is calculated using your annual salary, rounded up to the nearest $1,000, with an additional $2,000 added on top. The Federal government pays a portion of the premium for this Basic coverage, which helps keep costs relatively low compared to fully employee-paid options.

In addition to Basic coverage, FEGLI offers these coverages:

• Option A: Provides a fixed additional amount of coverage 
• Option B: Allows you to elect multiples of your salary, which can significantly increase your total coverage 
• Option C: Offers coverage for eligible family members 

These optional add-ons are paid entirely by the employee and are priced by age range.

FEGLI is often valued for its convenience and accessibility. There is no need for a medical exam when you first enroll, and payroll deductions make premiums easy to manage. However, it’s important to understand that coverage levels and costs may not always align with your long-term needs, especially as premiums increase with age and your financial responsibilities evolve.

Is FEGLI Worth it? Key Factors to Evaluate for Your Situation

Whether FEGLI is worth it depends on how well it aligns with your personal and financial goals. There is no one-size-fits-all answer.

Age and health play a major role in how FEGLI performs over time. While Basic coverage costs are relatively stable, Optional coverage costs increase in five-year age bands. That structure can make FEGLI feel affordable early in your career, then significantly more expensive as you move into your 40s, 50s, and beyond. In contrast, WAEPA’s medically underwritten group term life coverage can offer more competitive rates at certain ages than FEGLI Optional coverage.

Coverage needs are just as important. Many Federal employees need sufficient life insurance to replace income, pay outstanding debts, and help fund future expenses, such as college tuition. FEGLI can be a strong starting point, but its limits, especially when tied to salary, may not fully meet those needs. This is where combining FEGLI Basic with additional coverage can make sense.

Your career timeline and retirement plans also matter. If you expect to leave Federal service or want coverage that continues without major cost increases later in life, portability becomes an important consideration. Many Feds find that keeping FEGLI Basic while supplementing with WAEPA offers a balance of affordability, flexibility, and long-term stability.

How FEGLI Costs Change Over Time — Especially Option B

One of the most important things to understand about FEGLI is how premiums change over time. Optional coverage, including Option B, lets you elect multiples of your salary to increase your total coverage amount, but those premiums are tied to five-year age bands. As you move into each new age bracket, the cost of coverage increases.

Early in your career, Option B can appear cost-effective, especially if you need higher coverage tied to your salary. As you move into mid-career and beyond, the cost per $100,000 of coverage rises steadily. Many Federal employees see premiums that were once modest grow into a significant monthly expense in their 50s and 60s. This shift can make it harder to maintain the same level of coverage without adjusting your budget.

WAEPA and similar group term policies offer coverage amounts that are not tied to salary. That difference can be especially valuable as you plan for both your working years and retirement.

When FEGLI May Be Enough — and When WAEPA Might Be the Better Fit

FEGLI can be a solid foundation in certain situations. In the beginning, Basic coverage may provide enough protection if your financial obligations are limited. A single Federal employee with minimal debt and no dependents may find that FEGLI Basic meets their needs at a reasonable cost, especially with the government contribution helping offset premiums.

As your responsibilities grow, your coverage needs often do too. Mid-career Federal employees with spouses, children, or long-term financial commitments may find that FEGLI alone doesn’t provide enough protection. In these cases, many Feds choose to keep FEGLI Basic while adding WAEPA coverage to increase their total benefit. This can provide higher coverage amounts that support both current needs and future goals.

There are also scenarios where relying heavily on FEGLI Optional coverage, especially Option B, may not be the most cost-effective path over time. Shifting some or all of that coverage to WAEPA can help manage long-term costs while maintaining meaningful protection. This is often a key consideration for employees approaching retirement who want to continue coverage for a spouse or leave a financial legacy without facing steep premium increases.

How to Compare Your Numbers and Take the Next Step

When deciding between FEGLI and other life insurance options like WAEPA, review your current salary, your FEGLI elections, and the total amount of coverage in place. Your leave and earnings statement or FEGLI documentation can help confirm your coverage levels and the premiums you are currently paying. Having these details in front of you makes it easier to evaluate how well your existing plan supports your needs.

Once you have that information, you can explore how WAEPA compares. Our WAEPA vs. FEGLI calculator is a helpful tool for estimating premiums and coverage side-by-side based on your age and desired benefit amount. Many Federal employees also find it valuable to speak with WAEPA Member Services or a financial professional who understands Federal benefits.

If you’re ready to take the next step, download our WAEPA vs. FEGLI guide, contact WAEPA, or start an application today.

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