Waepa Life Insurance: Is It A Good Choice For You?

Worldwide Assurance for Employees of Public Agencies (WAEPA) is a non-profit association that provides life insurance exclusively to current and former civilian federal employees and their families. WAEPA offers higher maximum coverage amounts than FEGLI and can often save you money. Members who switched from FEGLI to WAEPA save over $300 a year on average. WAEPA's coverage is also portable, meaning that you can keep your policy even if you leave the federal government or retire. However, some customers have complained about poor customer service, difficulty getting in touch with representatives, and drastic rate increases.

WAEPA vs FEGLI: which is better?

WAEPA (Worldwide Assurance for Employees of Public Agencies) and FEGLI are both life insurance options for federal employees. While both have their advantages, there are some key differences between the two.

Cost

WAEPA offers exclusive rates for federal employees, and members who switch from FEGLI to WAEPA save, on average, over $300 a year. The amount saved depends on the coverage amount, salary, and age of the member. WAEPA's coverage amounts are not capped by salary, unlike FEGLI, and can go up to $1.5 million. However, WAEPA's rates increase with age, and it does not allow members to lock in a rate. As a result, it may be more expensive in the long term for healthy individuals.

Coverage

WAEPA provides higher maximum coverage amounts than FEGLI, and also offers spouse and dependent coverage. WAEPA's coverage is also portable, meaning it can be kept if the member leaves federal service. On the other hand, FEGLI requires members to remain insured for five consecutive years prior to retirement to continue coverage.

Additional Benefits

WAEPA offers a range of additional benefits for its members, including a scholarship program, pre-retirement support, and a financial wellness program.

Customer Service

Reviews of WAEPA's customer service are mixed. While some members praise the company's customer service, others complain about the difficulty in reaching a live representative and the lack of response via phone or email.

In conclusion, while WAEPA offers higher coverage amounts and exclusive rates for federal employees, resulting in savings for many members, it is important to consider the long-term costs, especially for healthy individuals. FEGLI, on the other hand, may be a better option for those seeking long-term coverage, as premiums go down to $0 at age 65 if the coverage is reduced. It is crucial to understand both options and their implications to make the right choice for your specific needs and circumstances.

WAEPA's pros and cons

WAEPAs Pros and Cons

WAEPA (Worldwide Assurance for Employees of Public Agencies) is a non-profit, group term life insurance association that has been serving current and former civilian federal employees and their families since 1943.

Pros

• WAEPA offers competitive rates, with members who switch from FEGLI saving over $300 a year on average.
• WAEPA's coverage is portable, meaning that members can keep their policy even if they leave their federal employer or retire.
• WAEPA typically refunds members a portion of their premiums annually.
• WAEPA offers a range of exclusive member benefits, including scholarships, financial wellness planning, and premium refunds.
• WAEPA's coverage is underwritten by New York Life Insurance Company, a reputable company that has been in business for nearly 175 years.
• WAEPA's coverage is not capped by salary, offering up to $1.5 million in coverage regardless of pay.
• WAEPA provides spouse and dependent coverage, with associate (spouse) membership eligible for up to $1.5 million in group term life benefits and $6,500 in short-term disability benefits.
• WAEPA offers a simple online application process.

Cons

• Some members have reported issues with customer service, including long wait times and difficulty reaching a live representative.
• WAEPA's rates increase with age, and some members have reported that the benefits decrease over time.
• WAEPA's coverage may not be the best option for healthy individuals in their 20s or 30s, as private insurance may offer lower fixed rates over a 30-year period.
• WAEPA's coverage does not have a cash value, which may be a consideration for some individuals.
• WAEPA's coverage may not be as well-known or established as other insurance providers, which could be a concern for some individuals.

Overall, WAEPA appears to be a reputable and reliable life insurance option for civilian federal employees, offering competitive rates, exclusive member benefits, and portable coverage. However, there have been some concerns raised about customer service and the long-term value of the coverage. It is important for individuals to carefully consider their own needs and circumstances when choosing a life insurance provider.

WAEPA's customer service

WAEPAs customer service has received mixed reviews. While some customers have praised the company for their positive experiences, others have complained about the difficulty in reaching a customer representative.

On the positive side, WAEPAs customers have appreciated the company's sensitivity and quick response during difficult times. One customer shared that WAEPA was "sensitive and worked quickly to provide [their] beneficiary benefit" after their husband passed away. Another customer highlighted the "great customer service and low overhead" as reasons for their satisfaction with WAEPA.

Additionally, WAEPAs scholarship program has been a significant benefit appreciated by many customers. Several reviews mention how their children or dependents received scholarships from WAEPAs annual scholarship program, which has helped make college more affordable.

However, there are also negative reviews from customers who faced challenges in reaching a live representative. Some customers complained about not being able to connect with a live person on the phone, while others mentioned issues with email responses. One customer shared their experience of trying to reach WAEPA for a simple question and being "reduced to sending them an email to their generic email address."

In response to these negative reviews, WAEPAs Member Services team has reached out directly to address the concerns and provide assistance. In their replies, WAEPA acknowledges the challenges and mentions changes made to improve the website and marketing materials, as well as providing direct contact information for their Member Services team.

Overall, while WAEPAs customer service has received mixed reviews, the company appears responsive to customer concerns and actively works to address issues.

WAEPA's cost

The cost of life insurance is a key consideration for federal employees when choosing between WAEPA and FEGLI. WAEPA offers exclusive rates for group term life insurance and group short-term disability insurance coverage, which are calculated based on factors including age and coverage amount.

WAEPA's rates are exclusive to current and former civilian federal employees, with coverage tailored to their unique needs. The organisation claims that members can often enjoy more coverage for less money compared to FEGLI. While FEGLI's coverage amount is capped at five times the policyholder's salary, WAEPA offers up to $1.5 million, regardless of salary. Members who switch from FEGLI to WAEPA save, on average, more than $300 per year.

However, WAEPA's rates increase with age. The rates are structured in five-year age bands, with the premium increasing when the policyholder reaches a new age band. Coverage automatically renews annually, provided premiums are paid on time. The maximum amount of coverage begins to reduce at age 60, but premiums do not reduce.

For example, a 33-year-old with a $50,000 policy pays $0.81 bi-weekly from ages 30 to 34. Upon turning 35, their rate increases to $1.15 bi-weekly, which is paid from ages 35 to 39. At age 40, the premium increases to $1.62 bi-weekly.

It is worth noting that WAEPA's coverage is portable, meaning it can be retained after leaving federal service. However, applicants must be under 70 years old when applying, and coverage extends up to the policyholder's 85th birthday.

WAEPA's coverage

WAEPAs coverage is Group Term Life Insurance, which means a single contract covers an entire group of individuals. In WAEPAs 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.

WAEPAs coverage is fully portable, meaning it can go with you when you leave the Federal government or retire. It is also not capped by your salary. FEGLI, for example, limits your coverage to up to five times your salary, whereas WAEPAs coverage offers up to $1.5 million in coverage regardless of your pay. WAEPAs rates can cost up to 89% less than FEGLI, and members typically get a partial premium refund every year.

In addition to life insurance, WAEPAs coverage also includes a Chronic Illness Rider and an Automatic Benefit Increase Rider. WAEPAs members also get access to exclusive rates and coverage options, scholarships, premium refunds, free financial planning, and more.

However, it is worth noting that WAEPAs coverage does not have a cash value. If you switch from FEGLI to WAEPAs coverage, you don't "lose" premiums paid into your FEGLI program since there was no cash value built into them to begin with.

Frequently asked questions