August Blog

Life Insurance: Term versus Whole

Life insurance exists to help protect your loved ones in case you pass. These policies are usually created as part of an overall estate plan. Two of the most common types of life insurance available are Term and Whole. Each has their own benefits. Review how the two compare:


Regardless of what time of program you choose, life insurance is a vital tool in helping to protect your family in case you pass. WAEPA’s coverage is Group Term Life Insurance2, meaning that a single contract covers an entire group of individuals (in WAEPA’s case, those individuals are exclusively Civilian Federal Employees). Typically, the contract extends to employees or members of a larger group, and the rates are calculated for the group rather than for individuals, so rates generally cost less compared to what someone would pay for their own life insurance product.

Also important to note: WAEPA’s coverage is Group Life Term Insurance. Like FEGLI, WAEPA’s coverage does not have a cash value. If you switch from FEGLI to WAEPA, you don’t “lose” premiums paid into your FEGLI program, since there was not a cash value built into them to begin with.


WAEPA’s coverage is similar to FEGLI’s in other ways, too:

  • Both programs increase rates in five-year age bands
  • Both programs exclusively serve employees of the Federal Government
  • Neither program has a cash value component
  • Both programs can be carried into retirement (but FEGLI does have limits and restrictions around this option)

While WAEPA’s coverage is structured similarly to FEGLI, many Civilian Federal Employees find greater value in our offerings:

  • WAEPA’s rates can cost less than FEGLI
  • Typically, WAEPA members get a partial premium refund every year3
  • WAEPA offers several auxiliary member benefits
  • WAEPA coverage is fully portable: even if you change jobs or retire
  • WAEPA’s coverage is not capped by your salary: FEGLI limits your coverage to up to five times your salary, whereas WAEPA offers up to $1.5 million in coverage regardless of your pay


Now that you understand more about your life insurance options as a Civilian Federal Employee, see how much you could save and if WAEPA is the right choice for you. If you still have questions about WAEPA Group Term Life Insurance, call our Member Services team at (800) 368-3484.


1) Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren’t includable in gross income and you don’t have to report them to the IRS. Learn more.
2) Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 on Policy Form GMR
3) Premium refunds not guaranteed


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.