Life Insurance

LMCIT partners with Ochs, Inc. and Minnesota Life to offer smaller-sized cities multiple coverage options of basic term life insurance for employees, as well as supplemental life insurance for employees, spouses, and children.

Basic Term Life Insurance

Basic term life insurance is available to small-sized cities and their employees. This is a city-funded benefit and must include all employees.

Benefit level options include:

• $5,000—$0.85 per employee per month
• $10,000—$1.70 per employee per month
• $15,000—$2.55 per employee per month
• $20,000—$3.40 per employee per month
• $25,000—$4.25 per employee per month
• $30,000—$5.10 per employee per month
• $35,000—$5.95 per employee per month
• $40,000—$6.80 per employee per month
• $45,000—$7.65 per employee per month
• $50,000—$8.50 per employee per month

Accidental Death and Dismemberment (AD&D)

Cities can choose to add an accidental death and dismemberment benefit to the basic term life benefit for all employees for an additional $0.03 per $1,000 of coverage per employee per month. AD&D provides an insurance benefit for accidental loss of a limb or eyesight. In addition, if death occurs and is the result of an accident, the life insurance benefit is doubled.

Supplemental Term Life Insurance

Supplemental term life insurance coverage is also available to city employees and their families. Options include:

• Employee Term Life with AD&D—elect in $5,000 increments up to $500,000
• Spouse Term Life with AD&D—elect in $5,000 increments up to $150,000
• Child Term Life—elect $10,000 (covers all eligible children for $1.30 per month) or $15,000 ($1.95 per month)

Newly eligible employees can elect guaranteed coverage (no health questions). Employees can elect up to $200,000 for themselves; up to $25,000 for their spouse; and $10,000 or $15,000 for their children. Rates for employee and spouse coverage are based upon their age.

Cities with More than 10 Employees

For cities with 10 or more employees, the LMCIT offers an alternative life insurance option; rates can be determined using employee census information.