hear it from WAEPA

Are You Prepared for The High Cost a Chronic Illness Would Bring?

Written by Written by Worldwide Assurance for Employees of Public Agencies (WAEPA) – A non-profit association formed in 1943 and governed by Federal Employees. on .

In 2016, researchers from the U.S. Department of Health and Human Services estimated that almost 70% of people turning age 65 will need some type of long-term care services in their lifetimes. If you or someone you know has ever had to care for a loved one with a chronic disease or condition, you know the emotional, physical, and financial burden this can create.

If you’re concerned about the steep costs a permanent, chronic illness could bring, learn more about WAEPA’s Chronic Illness Rider*, part of their Group Term Life Insurance** policy. This “living benefit” can help you and your loved ones find peace of mind. If you’re under age 65, you’re eligible to apply, and coverage can last until age 80.

With a Chronic Illness Rider in place, you would have the ability to collect up to 50% of your Group Term Life Insurance benefit (up to $500,000) if you were diagnosed with a qualifying chronic illness. Find the premium for your age using our rate calculator. Here are the three top reasons to consider adding this coverage:

It Helps Take Care of Extensive Medical Bills

What would happen if you were diagnosed with a debilitating illness? You may find yourself needing medical treatment for the rest of your life, including physical or occupational therapy and medications. Your savings, income, or investments may cover the cost of these treatments; however, in a period when you should be concentrating on recovering from the illness or spending time with your family, the costly medical bills could feel crippling. This two-way protection can help mitigate a potential financial burden.

Benefits Can Be Used However You Choose

This is not a reimbursement program. The benefit is paid to you directly in tax-free, annual installments of up to $125,000 to be used as you see fit, such as making your home more accessible, buying a wheelchair, etc. You may also elect to use the money to replace lost income, pay your mortgage, or cover ongoing living expenses.

You Don’t Risk Paying for Insurance You May Not Need

With this added coverage, you can collect part of your insurance while you’re living, and the balance will be paid to your beneficiaries when you pass away. If you don’t take advantage of this living benefit, your beneficiaries will receive the full face amount from your Group Term Life Insurance policy.

You might think that a chronic illness won’t happen to you, but life changes quickly. A Chronic Illness Rider ensures that you get pre-death benefits if the unimaginable occurs. Terminally ill individuals may not be able to qualify for chronic illness rider or find a new policy. With that in mind, it becomes vital to have the coverage in place before the need arises.

Make the choice today for a safe tomorrow: learn more about WAEPA’s Chronic Illness Rider, part of Group Term Life Insurance coverage.

This is a life insurance benefit that also gives you the option to accelerate some of the death benefit in the event that you are certified with a chronic illness as described in the certificate.


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.

*Chronic illness means the permanent inability to perform 2 out of 6 activities of daily living (bathing, continence, dressing, eating, toileting and transferring); or a permanent severe cognitive impairment requiring substantial supervision.”

The following states are not eligible for CIR: CT, ID, LA, MN, MT, NC, NY, OH, SD, UT, WA

**Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 on Policy Form GMR

Worldwide Assurance for Employees of Public Agencies (WAEPA), is a nonprofit association (not an insurance company) formed by federal employees, for federal employees. The goal of WAEPA is to provide access to products and services that promote the health, welfare and financial well-being of its members. After 75 years in business, WAEPA has over 44,000 members.


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Phone: 800-368-3484

Email: info@waepa.org

Website: waepa.org

Posted in Hear it from WAEPA

Tags: federal retirement, WAEPA