If you’re a federal employee, you’ve probably asked:

“Should I stick with FEGLI or switch to WAEPA?”

The answer depends on your situation—but once you understand how each works, the decision becomes much clearer.

What Is FEGLI?

The Federal Employees’ Group Life Insurance (FEGLI) is the default life insurance program for federal employees.

Key features:

  • Automatically available when hired
  • No medical exam (for Basic coverage)
  • Premiums increase with age
  • Coverage tied to your salary

Basic coverage = Salary (rounded up) + $2,000

What Is WAEPA?

The Worldwide Assurance for Employees of Public Agencies (WAEPA) is a nonprofit alternative available to federal employees.

Key features:

  • More stable pricing over time
  • Requires medical underwriting
  • Coverage not tied to salary
  • Often lower cost for healthy individuals

Side-by-Side Comparison

Feature FEGLI WAEPA
Enrollment Automatic Must apply
Medical Exam No (Basic) Yes
Pricing Increases with age More stable
Coverage Type Salary-based Fixed amount
Flexibility Limited More customizable
Long-Term Cost Higher Often lower

The Real Difference: Cost Over Time

FEGLI premiums:

  • Start relatively low
  • Increase every 5 years
  • Become expensive later in life

WAEPA:

  • Often starts competitively priced
  • Remains more stable over time

Over 20–30 years, WAEPA is often significantly cheaper for those who qualify.

Example Scenario

Assume:

  • Age: 50
  • Salary: $207,000
  • Coverage need: ~$1M

FEGLI:

  • Basic (~$209K) plus Option B
  • Premiums increase over time

WAEPA:

  • $1M flat coverage
  • More predictable long-term cost

In many cases, WAEPA results in lower total cost over time.

When FEGLI Is the Better Choice

FEGLI may be preferable if:

  • You have health conditions
  • You want guaranteed coverage
  • You prefer simplicity
  • You are close to retirement

When WAEPA Is the Better Choice

WAEPA may be better if:

  • You are relatively healthy
  • You want to control long-term costs
  • You need higher coverage amounts

The Biggest Mistake

Many people treat this as an either/or decision.

In reality, a combination often works best.

Example:

  • Keep FEGLI Basic
  • Add WAEPA for additional coverage

This provides:

  • Guaranteed baseline coverage
  • Cost-efficient supplemental insurance

What You Should Actually Be Asking

Instead of asking:

“Which is better?”

Ask:

“Do I have enough total coverage?”

The biggest risk is not choosing the wrong provider—it is being underinsured.

Why Many Federal Employees Are Underinsured

Typical situation:

  • Only FEGLI Basic (~$200K range)
  • Financial obligations far exceed that

This creates potential risk for surviving family members.

Run Your Numbers

To make the right decision, calculate:

  • Your total coverage
  • Your financial needs
  • Your coverage gap

Try the Federal Employee Life Insurance Calculator.

Bottom Line

  • FEGLI is simple and guaranteed, but can become expensive
  • WAEPA is often more cost-effective long term, but requires approval
  • A combined approach is often the most effective strategy

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Related Topics

  • How much life insurance you actually need
  • FEGLI Option B explained
  • Survivor planning strategies