Life Insurance
Basic Employer Life Insurance and AD&D
The City of Frisco provides basic life and accidental death and dismemberment insurance at no cost to you. Enrollment is automatic. The coverage amount is $50,000 for all non-uniformed employees and $150,000 for uniformed Fire and Police employees.
In addition, as part of the Texas Municipal Retirement System, TMRS-eligible employees have one time their annual salary of life insurance coverage. This is also known as a supplemental death benefit.
Voluntary Life Insurance
Benefit eligible employees may elect Voluntary Life Insurance provided by The Standard. Voluntary life benefits can be elected for the employee, the employee’s legal spouse, and/or eligible dependent children up to the age of 26.
Voluntary Employee Life Insurance
Voluntary employee life coverage can be up to a maximum of $250,000 in $10,000 increments. Employees in their new hire enrollment period may elect up to $250,000 without an Evidence of Insurability form (EOI). Employees who do not make this election during their new hire enrollment period will be required to submit an EOI if they choose to add or increase coverage in the following years. The Standard will reach out and contact employees who need to complete an EOI for the coverage they elect.
Spouse Life Insurance
Benefit eligible employees may elect Spouse Life Insurance provided by the Standard. Spouse life benefits can only be elected if Voluntary Employee life insurance coverage is elected. The amount of coverage elected for Spouse life cannot exceed the amount of coverage elected for Voluntary Employee life coverage.
New - Employees can elect up to $50,000 in spouse life coverage under Guaranteed Issue rules. No Evidence of insurability (EOI) form is required for amounts at or below $50,000.
To calculate the rates for Voluntary Employee and Spouse Life Insurance:
The rates for Life insurance are calculated based off of the Employee’s age. Spouse rates for Spouse life insurance are strictly based off of the Employee age and not the spouse age.
Life Coverage Amount / $1,000 = $ Covered Units x Age Banded Rate = Amount Per Pay Period cost
| Age Band | Rate |
|---|---|
| Less than 25 | .015 |
| 25 to 29 | .02 |
| 30 to 34 | .025 |
| 35 to 39 | .035 |
| 40 to 44 | .04 |
| 45 to 49 | .065 |
| 50 to 54 | .105 |
| 55 to 59 | .205 |
| 60 to 64 | .32 |
| 65 to 69 | .595 |
| 70 plus | .975 |
Example: Jane Doe will be 42 years old by 1/1/22. She elects $150,000 for her Life coverage amount. Her amount per pay period cost for the coverage will be $6.00 due to the calculation: $150,000 / $1000 = $150 x .04 = $6.00 per pay period cost
Child Life Insurance
Benefit eligible employees may elect either $5,000 ($0.50 per paycheck) or $10,000 ($1.00 per paycheck) in coverage for eligible dependent children below the age 26. Voluntary Employee Life coverage must be elected in order to cover dependent children. Child Coverage election will include all eligible children.
Benefit Reductions:
The cost per paycheck for the coverage amount is based off the Employee’s age. The actual benefit and life coverage amount does not start reducing until the employee reaches a certain age. See table below for age, reduction percentage, and examples:
| Employee’s Age | % Reduction | Example |
|---|---|---|
| 70 | 35% | $100,000 in Life coverage reduces down to $65,000 |
| 75 | 60% | $100,000 in Life coverage reduces down to $40,000 |
| 80 | 75% | $100,000 in Life coverage reduces down to $25,000 |
| 85 | 85% | $100,000 in Life coverage reduces down to $15,000 |
All coverage cancels at retirement. When an employee decides to leave employment with the City of Frisco, he or she has the option of also port or convert their life insurance coverage. Please see the documentation for more information and contact HR if this is something that interests you.
Portability and Conversion Life Insurance:
Employees who leave employment with the City have the option to convert or port their group life insurance Plans. They must complete an application to either convert or port their coverage and turn this into the Standard within 60 days after their coverage ends with the City. Applications for conversion and portability can be found here:
Life Insurance Benefit Links and Documents:
- The Standard Beneficiary Designation Form
- Group Additional Life Insurance - At a Glance
- Goup Basic Life and AD&D - At a Glance
- Basic and Additional Life Insurance - Class I Certificate (Uniformed Police and Fire)
- Basic and Additional Life insurance - Class II Certificate
- Life Insurance Conversion Application - For Former Employees
- Life Insurance Portability Application - For Former Employees