WAEPA Touts Innovative Riders, Ease of Use in Life Insurance Options
Open enrollment season is just around the corner. While federal employees will be selecting health coverage and other benefits for 2024, it is also a good time to take stock of your entire financial picture. That includes reviewing whether you have enough life insurance. After all, it can give people peace of mind to know that their family will be taken care of financially, should something unexpected happen.
Life insurance for federal employees was the subject of a recent episode of FEDtalk. Host Debra Roth, Partner at Shaw Bransford & Roth P.C., spoke with Shane Canfield, CEO of Worldwide Assurance for Employees of Public Agencies (WAEPA), a non-profit organization that provides life insurance and other financial products to the federal community.
Canfield began by stating that WAEPA has the best interest of federal employees at its core, noting that the 80-year-old organization’s tagline is “For Feds by Feds” and the board is made up all civilian federal employees.
“We’re always thinking about the federal employee, what can we do for them,” Canfield said, noting that WAEPA is growing at a time when other life insurance providers are not. WAEPA is insures more than 50,000 people.
WAEPA’s Group Life Insurance
WAEPA is busy building out its business. Its new underwriting partner is one of the most reputable companies in the insurance business, New York Life. In recent years, WAEPA hired more staff, streamlined the application process, and made the application process easier online.
Under WAEPA, everyone is insured under one master policy, making it easier to absorb claims as opposed to individual life insurance. “It’s a real benefit that people can’t get in the open market,” said Canfield.
WAEPA’s Differences with FEGLI
Canfield discussed similarities and differences between WAEPA and Federal Employees Group Life Insurance (FEGLI), currently the biggest group life insurance plan in the world.
WAEPA premiums are structured in five-year age bands, the same as FEGLI. Every five years the premium steps up according to a person’s risk of dying during that time.
“We’re very proud of our rates, they’re less than FEGLI always,” stated Canfield, who added that’s easy to search for quotes using WAEPA’s online comparison tool. Canfield noted that the tool takes out the “guesswork” when it comes to buying life insurance.
Canfield also stated that many people are supplementing their FEGLI policies with one from WAEPA.
WAEPA’s Evolving Products
“We have improved the product many times,” Canfield said, noting that one of the major improvements was bringing maximum coverage up to $1.5 million from $600,000 over the past six years.
WAEPA also rolled out several riders. One is a chronic illness rider that will pay out benefits early if someone is not able to successfully complete two of the six activities needed for daily living.
Another is a brand-new rider that gives an automatic benefit increase of $25,000 a year for ten years. Roth and Canfield both called it an “inflationary hedge.”
Life Insurance Costs
Canfield debunked myths that life insurance is expensive, noting the average WAEPA premium is $800 a year, less than auto insurance and home insurance in many states.
While federal employees can enroll with WAEPA at any time, Canfield said WAEPA sees most of their signups in the fourth quarter, as people rethink their financial plan.
“I can’t think of anything more crucial than to have life insurance flowing to a grieving family, than when a breadwinner is not able to be there. You don’t want to layer financial worry on top of the emotional hardship,” said Canfield.
You can stream the show online anytime on Federal News Network or listen to FEDtalk on all major podcasting platforms. FEDtalk is a live talk show produced by Shaw Bransford & Roth P.C., a federal employment law firm. Bringing you the insider’s perspective from leaders in the federal community since 1993.
FEDtalk is sponsored by Blue Cross Blue Shield FEP Dental. Members get fully-covered, in-network preventive care, including up to three covered cleanings a year, plus no deductibles for in-network services, like fillings and root canals. Visit bcbsfepdental.com to learn more.