Life Insurance For Weas: What You Need To Know

Life insurance is an important consideration for anyone with financial dependents. WEA Member Benefits offers a variety of life insurance options, including whole life insurance and term life insurance, to Wisconsin public school employees and their families. WEA Trust also offers group life insurance coverage to its members. WAEPA provides exclusive group term life insurance coverage for current and former Civilian Federal Employees.

Federal Employees' Group Life Insurance (FEGLI)

In addition to Basic, FEGLI offers three forms of Optional insurance: Option A, which provides an additional $10,000 of coverage (doubling in case of accidental death); Option B, which offers one to five multiples of pay; and Option C, which covers an employee's eligible family members with one to five multiples of coverage, with each multiple worth $5,000 upon the death of a spouse and $2,5000 upon the death of an eligible child. Employees must have Basic insurance to be eligible for any Optional insurance, and enrollment in Optional insurance is not automatic; employees must take action to elect these options. While the cost of Basic insurance is shared between the employee and the government (with the employee paying 2/3 and the government paying 1/3), the employee pays the full cost of Optional insurance, and the price depends on their age.

The FEGLI Calculator is a tool that helps employees determine the face value, premiums, and coverage amounts of various FEGLI combinations. It also illustrates how choosing different options can change the amount of life insurance and premium withholdings over time. The Office of Federal Employees' Group Life Insurance (OFEGLI), a private entity contracted by the Federal Government, is responsible for processing and paying claims under the FEGLI Program.

Cost of FEGLI

The cost of FEGLI coverage depends on several factors, including salary and age. Basic insurance coverage uses a composite premium structure, meaning that the premium rate is the same for each enrollee in the group policy, regardless of age or health status. Younger employees may pay a comparatively higher premium than they would with coverage based on age. Basic premiums are the same for employees regardless of age, and postal employees typically receive Basic coverage with no premium.

The FEGLI Basic insurance premium is a level rate per thousand dollars of coverage. The enrollee premium rates are equal for the duration of the coverage period, and the rate for an individual enrollee does not change as the enrollee ages. This means a younger employee pays the same cost for Basic coverage as a 64-year-old retiree. For example, a 25-year-old active employee will pay the same Basic Biweekly and Monthly Cost (per $1000 of coverage) as an older employee. This feature balances the premium over time, making the enrollee cost more predictable, as the enrollee pays an average cost over the term of their coverage.

Optional premiums increase with age in five-year bands starting at age 35. Premiums increase at age 35, 40, 45, and so on. For Option B coverage, take your annual rate of pay and round it up to the nearest whole $1000. Do not add $2000 for Option B. Take the number of thousands of dollars and multiply them by the Option B rate for your age to get your biweekly Option B premium.

On average, members who switch from FEGLI to WAEPA save over $300 a year.

Who is eligible for FEGLI?

Federal Employees' Group Life Insurance (FEGLI) is a program that was established by the Federal Government on August 29, 1954. It is the largest group life insurance program in the world, covering over 4 million Federal employees and retirees, as well as many of their family members.

Most employees are eligible for FEGLI coverage, but some positions are excluded by law or regulation. Almost all workers for the Federal Government are eligible for FEGLI and are automatically covered by "Basic" coverage. This includes current and former Civilian Federal Employees.

However, there are some civil servants who are not eligible for this federal benefit. These include workers employed by corporations supervised by the Farm Credit Administration, temporary positions, and overseas teachers paid by the Department of Defense.

If you are a new Federal employee, you are typically automatically covered by Basic life insurance, and your payroll office deducts premiums from your paycheck unless you waive the coverage. The Basic insurance amount is calculated by rounding the employee's salary up to the nearest thousand and adding an additional $2,000. It's important to note that if you are 45 or younger, the coverage amount could be double, and for those between 35 and 45, the amount gradually decreases from 2x.

Additional coverage options

WEA Member Benefits offers a variety of life insurance options, including whole life insurance and term life insurance through Associates of Clifton Park. Term life insurance is the simplest form of life insurance, offering a death benefit that pays out a sum of money either on the death of the insured person or after a set period of time. Whole life insurance, on the other hand, pays a death benefit whenever the insured person dies, regardless of age. There are three types of whole life insurance: traditional whole life, universal life, and variable universal life.

In addition to these basic options, WEA members can also enhance their coverage with a Chronic Illness Rider or an Automatic Benefit Increase Rider. The Chronic Illness Rider provides additional benefits while the insured person is still alive but suffering from a chronic illness. This can include coverage for expenses such as long-term care, home health care, or necessary modifications to the home. The Automatic Benefit Increase Rider, on the other hand, provides for automatic increases in the death benefit over time, helping to ensure that the coverage keeps pace with inflation and maintains its value.

For those who are employed in the state of Wisconsin, WEA Member Benefits also offers a range of other insurance programs, including auto insurance, home insurance, condo insurance, renters insurance, and umbrella insurance. These programs are designed specifically for Wisconsin public school employees and their families, with unique features and coverages that set them apart from commercial providers.

Filing a claim

To file a life insurance claim, the first step is to contact the insurance company or agent. They will be able to explain their process for filing a claim. The name of the insurance company will be clearly stated on the life insurance policy. If you remember the agent you worked with, ask for them specifically.

Next, obtain several copies of the death certificate. You will need to submit a certified copy of the death certificate from the funeral director with the policy claim. Be sure to get multiple copies of the death certificate, as you may need to submit a certified proof of death to several places as part of the estate disposition process.

Then, file the death benefit claim with the life insurance company. You can often start a claim online, or by contacting the company directly and asking for the claims department. They will guide you through the process and answer any questions. In addition to a death certificate, you will need the insured's policy number, date of birth, full name, date of death, the place they died, cause of death, and your name as the beneficiary.

Finally, choose the form of the payout. You can receive a life insurance death benefit payout in several ways:

• Lump sum: You receive the entire death benefit in a single amount.
• Specific income: The company pays you both principal and interest on a predetermined schedule.
• Life income: You receive a guaranteed income for life, with the amount depending on the death benefit, your gender, and your age at the time of the insured's death.
• Interest income: The company holds the proceeds and pays you interest on them. The death benefit remains intact and goes to a secondary beneficiary upon your death.

Frequently asked questions