How Can I Enhance My Life Insurance Coverage?
WAEPA has offered Group Term Life Insurance coverage exclusively for current and former Civilian Federal Employees since 1943. With two add-on options, the Chronic Illness Rider and Automatic Benefit Increase Rider, it’s easy to customize your coverage to meet your unique needs.
Chronic Illness Rider: Protection for a Rainy Day
What is a Chronic Illness Rider?
The Chronic Illness Rider is designed to provide financial support in case of permanent chronic illness. Adding this rider when you apply for Group Term Life Insurance coverage can help plan for the unexpected. The rider allows you to accelerate 50% of your Group Term Life benefit amount, up to a maximum of $500,000, if you become permanently chronically ill. While this benefit cannot replace health insurance, it can help ease the financial burdens associated with chronic illness.
How does a Chronic Illness Rider work?
The Chronic Illness Rider is a tax-free benefit1, paid directly to the insured member, to use as they see fit. If you become permanently chronically ill, you can receive up to 50% of your Group Term Life Insurance benefit over a four-year period. This money can be used to cover mortgage payments, ongoing living expenses, medical bills, or replace lost income.
If you remain healthy and do not need the coverage, your term life insurance benefit will be paid to your beneficiaries in full.
How do I add a Chronic Illness Rider to my life insurance policy?
Adding the Chronic Illness Rider is simple. For new policyholders, select this rider during the application process. Existing policyholders must apply for an increase in Group Term Life coverage and undergo medical underwriting to add this rider.
Who needs a Chronic Illness Rider?
Anyone looking for an additional layer of financial protection in the face of permanent chronic illness would benefit from this rider. The Chronic Illness Rider helps protect you and your loved ones from life’s storms.
A chronic illness is defined as the permanent inability to perform at least two of six Activities of Daily Living (ADLs): bathing, dressing, eating, toileting, transferring, and continence.
Whether you have a family history of chronic illness, or simply want an additional layer of safety for your financial future, consider applying for this rider to enhance your coverage2.
Learn more about the Chronic Illness Rider >
Automatic Benefit Increase Rider: Additional Protection for Tomorrow, Today
What is an Automatic Benefit Increase Rider?
The Automatic Benefit Increase Rider is designed to enhance your Group Term Life Insurance policy. This rider will increase your Group Term Life Insurance coverage annually, providing additional coverage as your life insurance needs evolve. It can be added to a new Group Term Life Insurance policy to help policyholders make a plan for tomorrow, today.
How does an Automatic Benefit Increase Rider work?
This rider allows a Group Term Life Insurance benefit amount to increase by $25,000 each year for up to 10 years, for a maximum of $250,000 in added coverage. These increases occur automatically, with no additional medical underwriting required, unless a policyholder opts out of an increment.
Here’s a look at how protection would increase for a 35-year-old, applying for $100,000 in initial coverage
How do I add an Automatic Benefit Increase Rider to my life insurance policy?
New policyholders can add the Automatic Benefit Increase Rider when filling out a new Group Term Life Insurance application. Existing policyholders must apply for an increase in Group Term Life coverage and undergo medical underwriting to add this rider to their coverage.
Policies must have a minimum face value of $100,000 for this rider to be added.
Who needs an Automatic Benefit Increase Rider?
The right amount of financial protection for you will change over time. Your life insurance needs may look different at age 35 than they will at age 50. With a family, house, and possible medical issues on the horizon, you may need your coverage to keep up. This rider helps keep your coverage align with these growing needs. It requires little to no additional action from you and provides continuous peace of mind.
Learn more about the Automatic Benefit Increase Rider >
Life's uncertainties require flexible and comprehensive life insurance coverage. With add-on riders from WAEPA, you can safeguard the financial future for you and your loved ones. your loved ones and keep up with life’s changes. Learn more about these customizable options to protect your financial future.
Join WAEPA
Founded in 1943, WAEPA provides current and former Civilian Federal Employees with exclusive Group Term Life Insurance and Short-Term Disability Insurance. WAEPA members have access to resources, tailored specifically to the needs of Feds and their families. Today, more than 50,000 Feds and their families choose WAEPA to be there for life’s biggest moments.
1. Receipt of life insurance proceeds may be taxable in some instances, consult your qualified tax advisor to review your specific circumstances.
2. NOTE: The Chronic Illness Rider is not a standalone policy; it can only be added to a new Group Term Life Insurance policy as a rider.
IMPORTANT NOTICE: This rider is not intended to be a federally tax-qualified long-term care insurance contract under Internal Revenue Code (IRC) Section 7702B. Therefore, the premiums payable for this rider do not qualify as long-term care insurance premiums and are not deductible from gross income for federal income tax purposes. This rider, however, is subject to the federal per diem limits set forth in IRC Section 7702B. Under this rider, New York Life will not pay claimants more than the federal per diem limits. Assuming the amount you receive in the aggregate from all applicable policies does not exceed the federal per diem limits set forth in IRC Section 7702B, the benefits provided by the Chronic Illness Rider are intended to be excludable from federal gross income under Section 101 (g) of the IRC. Receipt of an accelerated death benefit may affect eligibility for Medicaid or other government benefits or entitlements and may have income tax consequences. Accelerating benefits before applying for these programs, or while you are receiving government benefits, may affect your initial or continued eligibility. Clients can contact the appropriate social service agency (e.g., the Medicaid Unit of your local Department of Public Welfare or the Social Security Administration Office) for more information. CIR is not currently available in: ID, LA, MN, NY, OH, UT, WA, all U.S. Territories, or to applicants with AA/AE/AP addresses.
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