WAEPA vs. FEGLI
WAEPA Offers Feds More Coverage than FEGLI… for Less
For many Federal employees, ‘life insurance’ means FEGLI, the government-provided life insurance option. However, Feds have another life insurance choice. WAEPA provides higher maximum coverage amounts and can often save you money compared to FEGLI.
For most people, including Federal employees, life insurance is a key part of long-term financial planning. Life insurance helps peace of mind, safeguarding the financial future for your loved ones if you were to pass away.
A life insurance policy can cover a variety of things including final expenses, mortgages, college tuition, and replace lost income.
What is FEGLI?
The Federal Employees’ Group Life Insurance Program (FEGLI) is a group-sponsored term life insurance plan that’s been available to Federal employees since 1954.
The “group” in this coverage option are Federal employees and retirees; the sponsor is the Federal government.
Who is Eligible for FEGLI?
Most Federal employees, including part-time employees, are eligible to enroll in FEGLI when they are hired or rehired.
Participation in FEGLI is voluntary, however if an employee is eligible, they will be automatically enrolled in FEGLI’s basic life insurance coverage unless they formally waive coverage.
In short, FEGLI is the default employer-provided life insurance option that’s available to mostly Federal employees, including part-time employees.
What are FEGLI Coverage Options?
FEGLI offers Federal employees four types of life insurance coverage: basic, Option A, Option B, and Option C
FEGLI Basic Coverage
FEGLI’s basic coverage offers Federal employees coverage that is equal to the greater of two options:
- An employee’s annual salary, rounded up to the next $1,000 + $2,000
- $10,000 flat
For example, an employee whose current annual basic pay is $33,145 would have their salary rounded up to $34,000 + $2,000 for a total benefit of $36,000.
Meanwhile, an employee whose annual basic pay is $5,389 would be entitled to $10,000.
FEGLI Basic Coverage includes accidental death & dismemberment (AD&D) coverage.
FEGLI Basic Extra Benefit for Employees under Age 45
FEGLI also offers an extra benefit to employees under age 45 at no additional cost. This benefit increases the amount of life insurance payable to the employee by a changing factor that depends on age. See the table below for the multiply factor.
Example: an employee who currently receives $50,000 in FEGLI coverage
| Age | Extra Benefit (Multiply Coverage by the following factor) | Total Coverage for Example Employee with $50,000 in Coverage |
|---|---|---|
| 35 or under | 2.0 | $100,000 |
| 36 | 1.9 | $95,000 |
| 37 | 1.8 | $90,000 |
| 38 | 1.7 | $85,000 |
| 39 | 1.6 | $80,000 |
| 40 | 1.5 | $75,000 |
| 41 | 1.4 | $70,000 |
| 42 | 1.3 | $65,000 |
| 43 | 1.2 | $60,000 |
| 44 | 1.1 | $55,000 |
| 45 and over | 1.0 | $50,000 |
FEGLI Option A – Standard Life Insurance
With FEGLI Option A (Standard), employees can add $10,000 in standard term life insurance to their FEGLI Basic Coverage at their own expense.
Use our WAEPA vs. FEGLI calculator to see your premium rate with FEGLI >
For example, a Federal employee makes $47,494 a year. With FEGLI Basic, they would receive $50,000 in coverage (rounded to the next $1,000 plus $2,000). If this employee chose to add FEGLI Option A, they would receive a total of $60,000 in coverage.
FEGLI Option B – Additional
With FEGLI Option B (Multiple of Salary), employees can add coverage to their FEGLI Basic Coverage in amounts equal to 1x, 2x, 3x, 4x, or 5x their annual salary (after rounding up to the next $1,000), at their own expense.
With our example Federal employee who received $50,000 in FEGLI Basic Coverage, with FEGLI Option B, they could select a multiple of their salary:
- (1 x $48,000) + $50,000 in Basic Coverage = $98,000 in total coverage
- (2 x $48,000) + $50,000 in Basic Coverage = $146,000 in total coverage
- (3 x $48,000) + $50,000 in Basic Coverage = $194,000 in total coverage
- (4 x $48,000) + $50,000 in Basic Coverage = $242,000 in total coverage
- (5 x $48,000) + $50,000 in Basic Coverage = $290,000 in total coverage
FEGLI Option C – Family Coverage
FEGLI Option C offers Federal employees coverage for a spouse (including a legal same-sex spouse) and eligible dependent children and stepchildren.
If an employee selects Option C, all of the employee’s eligible family members are automatically covered. Coverage is in multiples of $5,000 for a spouse and $2,500 for each child; employees may select 1x, 2x, 3x, 4x, 5x this coverage for each eligible family member.
For example, if an employee has a spouse and 3 children and selects four multiples:
- Their spouse would be covered with 4 x $5,000 = $20,000 in coverage
- Each child would be covered with 4 x $2,500 = $10,000 in coverage
FEGLI Premiums and Costs
Is FEGLI Expensive?
FEGLI’s premiums increase with age and can be costly, especially FEGLI Option B. Federal employees are encouraged to compare FEGLI rates with private insurance to find the best option to meet your needs and budget.
How are FEGLI Premiums Determined?
FEGLI premiums are paid for by the employee, who has access to these government-sponsored group rates as a result of their employment.
FEGLI Basic Premiums are $0.16/thousand dollars in coverage for all ages, while options A, B, and C rates are based on five-year age bands, with rates increasing as employee’s get older.
Who Pays for FEGLI Coverage?
The payment structure for FEGLI depend on the selected coverage option:
- For FEGLI Basic Coverage, the Federal government shares the cost with the employee
- The government pays one-third of the premiums, with the employee covering the rest
- For FEGLI Optional Coverages (A, B, and C), the employees cover 100% of this optional coverage
What are FEGLI Alternatives?
How Does FEGLI Compare to Private Life Insurance?
There is no single ‘best life insurance for Federal employees,’ rather the best policy for your unique needs.
Some factors to help you determine your optimal coverage include costs, coverage amounts, portability, and other benefit offerings.
What If My Coverage from FEGLI Isn’t Enough?
Coverage from FEGLI is directly tied to salary. If this coverage does not meet your needs, you have the opportunity to add additional protection by supplementing with another life insurance policy from a private insurer.
How Does WAEPA Compare to FEGLI?
WAEPA is an alternative life insurance option for Civilian Federal Employees, offering Group Term Life Insurance for both current and former Feds.
READY TO MAKE THE SWITCH?
See Why 50,000+ Feds choose WAEPA
We aim to provide a complete and accurate comparison to FEGLI. For exact information please contact FEGLI directly. *Premium refunds are not guaranteed.
WAEPA
Maximum Coverage
$2,000,000
Maximum Spouse coverage
$800,000
Maximum Children’s Benefits
$25,000
Scholarship Program
Premium Refund Program*
Additional Accident Benefits
Common Carrier Benefit
FEGLI
Maximum Coverage
Based on Annual Salary
Maximum Spouse coverage
$25,000
MAXIMUM CHILDREN’S BENEFITS
$12,500
Scholarship Program
Premium Refund Program*
Additional Accident Benefits
Common Carrier Benefit
On average, members who switched from FEGLI to WAEPA save over $300 a year**.
How much could I save?
It depends on the coverage amount you’re looking for, your salary, and your age. Unlike FEGLI, WAEPA’s coverage amounts are not capped by your salary.
Making Changes to FEGLI
How Do I See How Much FEGLI Coverage I Have?
Active Federal employees should contact their agency’s Human Resources (HR) office to check their FEGLI records.
Annuitants can view their information online at the Office of Personnel Management (OPM) Retirement Services or by calling OPM.
How Do I Cancel or Reduce FEGLI Coverage?
Federal employees can cancel or reduce their FEGLI coverage at any time by submitting a completed SF 2817 form to their agency’s Human Resources (HR) office.
Related resource: How To Cancel FEGLI: Step-by-Step Guide and Coverage Options Comparisons >
Can I Enroll in or Increase FEGLI Coverage Outside of Open Season?
FEGLI Open Seasons are rare; with the last ones occurring in 2004 and 2016. Enrolling or increasing coverage outside of an Open Season is only possible if a Federal employee experiences a qualifying life event or passes a physical exam.
How Do I Change My Beneficiaries?
Active Federal employees can change their beneficiaries at any time by submitting a new SF 2823 form to their agency’s Human Resources (HR) office.
Retirees should send this form directly to OPM.
Can I Keep FEGLI Coverage After I Retire?
For a Federal employee to keep their FEGLI Basic Coverage into retirement, they must meet the “five-year rule,” which requires the employee to be enrolled with FEGLI for the five years of service immediately before retiring. Please note that missing years of coverage cannot be “bought back” to meet this requirement. A comprehensive look into this requirement can be found in our WAEPA vs. FEGLI guide.
What happens to FEGLI Basic Coverage When I Turn 65?
When a Federal employee turns 65 or retires (whichever comes first), one of three options are available for basic coverage:
- 75% reduction: coverage reduces by 75% (25% of its pre-retirement amount). This is the default option and has no premiums once the reduction starts.
- 50% reduction: this maintains coverage at 50% of the pre-retirement amount; premiums are paid to sustain the amount.
- No reduction: 100% of the pre-retirement coverage is maintained; higher premiums are paid to keep this coverage.
Accidental death and dismemberment (AD&D) coverage ends when employment ends, regardless of which option is chosen.
With the default option of 75% reduction, there is no cost to the retired Federal employee. For the 50% and no reduction options, the additional premium cost is paid by the retiree.
Can I Keep FEGLI Coverage When I Leave Federal Service?
No. FEGLI coverage will automatically terminate when an employee leaves Federal service.
Frequently Asked Questions
As a Fed looking for life insurance coverage, the two primary options you have are WAEPA and FEGLI. It’s important to understand both options to make the right choice for you and your family.
Who is eligible for WAEPA coverage?
WAEPA offers life insurance coverage to eligible current and former Civilian Federal Employees and retirees. Certain family members of Federal employees, including spouses, children/stepchildren, and parents/parents-in-law, are also eligible for Associate Membership. Eligibility requirements vary by coverage type.
Can I keep my coverage if I leave Federal Service?
Yes! WAEPA’s coverage is portable. It can go with you when you leave the Federal government.
As a WAEPA member, you can keep your coverage, even if you leave Federal service, change jobs, or retire. With FEGLI, you must remain insured for five consecutive years prior to retirement to continue coverage.
What’s my maximum coverage?
WAEPA provides up to $2 million in coverage
- Eligible WAEPA members can qualify for up to $2 million in Group Term Life Insurance
- Associate members can also qualify for up to $2 million in Group Term Life Insurance
FEGLI’s coverage amount varies based on your Federal salary and is capped at 5x your salary
Can I get coverage for my whole family?
Yes! WAEPA provides spouse and dependent coverage. We also provide an associate (spouse) membership with additional maximums and benefits.
WAEPA offers:
- Associate (spouse) membership eligible for up to $2 million in Group Term Life benefits and $6,500 in Short-Term Disability benefits
- Dependent spouse plan eligibility up to $800,000 in coverage
- Dependent children plan eligible for up to $25,000 in coverage
With FEGLI, Dependent spouses are only eligible for up to $25,000 in coverage and $12,500 in children’s benefits
Do WAEPA and FEGLI policies have cash value?
No. Both WAEPA Group Term Life Insurance and FEGLI are term life insurance products, which do not accumulate cash value.
How are premiums structured over time for WAEPA vs. FEGLI?
Both WAEPA and FEGLI generally use five-year age bands to determine premiums. Rates typically remain the same within an age band and increase when you move into the next age band.
What additional benefits do I get if I become a WAEPA member?
There’s a lot of great benefits to being a member – great coverage, exclusive rates, and access to our member programs:
- Scholarship Program
- Pre-retirement Support
- Complimentary Financial Wellness Program with EY
Disclaimers
FEGLI Option C – when this option is selected, the example will show coverage amounts for one spouse and one child times the multiplier amount selected (1-5). With a multiplier of one, spouses add $5,000 and each dependent child adds $2,500 to the total FEGLI coverage displayed. The calculator does not include coverage amount for additional children.
*Premium refunds not guaranteed
**Based on the average 45-year-old who switched from FEGLI to WAEPA, as of 1/1/2025