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The City of Mesa provides several life insurance policies for employees, including basic life insurance, accidental death & dismemberment (AD&D) coverage, supplemental employee and dependent life insurance, and business travel accident/commuter travel life insurance at no cost to the employee. Employees may also purchase Supplemental (Voluntary) life with included AD&D insurance for additional financial protection.

Basic Life Insurance

Basic Life Insurance (insured by MetLife) is provided to full-time employees at no cost. The benefit is equal to the employee's annual salary rounded up to the nearest $1,000. At hire, employees are asked to designate a beneficiary. It is highly recommended that employees review their beneficiaries every few years, but especially when they've experienced a major life event, such as marriage, divorce, birth or death of a family member. This coverage includes conversion or portability rights should you terminate your employment or retire from the City of Mesa.

Accidental Death and Dismemberment (AD&D)

Like the Basic Life Insurance policy, AD&D coverage (insured by MetLife) is provided to full-time employees at no cost and is an additional benefit over and above the Basic Life Insurance benefit. The benefit is equal to an employee's annual salary rounded up to the nearest $1,000. The beneficiary of this policy will match the designation of your Basic Life Insurance. This coverage includes conversion or portability rights should you terminate your employment or retire from the City of Mesa.

Business Travel Accident/Commuter Life/Accident Insurance

Provided through New York Life Group Benefit Solutions (NYL), this policy provides a $200,000 death benefit to your beneficiary in the event you are killed as a result of an accident that occurs while you are engaged in City business travel (e.g., attendance at external business seminars/conferences) or commuting to or from work using your normal route. The beneficiary of this policy will match the designation of your Basic Life Insurance.

Supplemental Life Insurance

Supplemental (Voluntary) Life Insurance (insured by MetLife) offers full-time and part-time benefit eligible employees the opportunity to purchase additional life insurance coverage for you, your spouse/committed partner, and/or your dependent children. Coverage for you and your spouse is available in $10,000 increments up to a total of $300,000 each. Premiums for this coverage are your responsibility and will be deducted via payroll deductions. The City does not contribute to the cost of this coverage.

You may add or increase coverage during annual Open Enrollment. If you have a qualifying event (e.g. marriage, newborn, etc.), mid-year applications may be submitted by completing a Benefit Enrollment/Change Form [PDF].

If you have not previously enrolled in Supplemental Life Insurance, or if you want to increase coverage for you or your spouse, please be advised that your application may be subject to underwriting and approval by the carrier administering this plan after you complete and submit a Statement of Health form (ESH).

This coverage may include conversion or portability rights for both you and your dependents. For additional details on conversion and portability rights, see the Conversion and Portability Privileges section below.

Supplemental Life Insurance Monthly Premiums (per $10,000 of coverage)

Age Band (Employee or Spouse)	Cost/$10,000 of Coverage per Month
<29	$0.80
30 - 34	$1.00
35 - 39	$1.20
40 - 44	$1.40
45 - 49	$2.60
50 - 54	$3.40
55 - 59	$5.40
60 - 64	$7.60
65 - 69	$13.20
70+	$21.00

*Dependent Children coverage is limited to $500 from birth to six months of age. After six months, coverage will increase to the elected amount. Coverage will terminate on the last day of the month the child turns 26 years of age. You are responsible for notifying the Benefits Office to terminate coverage when your child reaches age 26 to prevent premiums from being deducted. Refunds are not issued for over payment of premiums if you do not notify the Benefits Office in a timely manner.

Age band increases in premium costs for employee and/or spouse occur in January of every year. Benefit reductions are applied after the employee and/or spouse turn 70 at the beginning of the next calendar year.

Beneficiaries

Beneficiary designations are processed in eBenMesa during Open Enrollment or anytime during the year. Arizona is a community property state. If you are designating any portion of the employee Basic or Supplemental life insurance to someone other than an applicable spouse you must have your spouse complete a Spouse Waiver and Release Form [PDF] (this does not apply to committed partnerships). Life insurance for a spouse and/or dependent children are automatically designated to the employee and cannot be changed.

Group Term Life and AD&D Portability and Conversion Privileges

If you lose eligibility for Life and AD&D insurance coverage with the City of Mesa, you may be eligible to continue your existing Basic and Supplemental Life and AD&D Insurance coverage at individual rates under the Portability and/or Conversion provisions of the respective insurance policies.

Application for Portability

Portability allows you and your covered dependents to continue your existing Basic and Supplemental term-life and AD&D insurance under a separate group policy. Unlike conversion, portable coverage does not have a cash value and the rates you pay will increase as you age. You will not need to answer any medical questions or have a physical exam to port existing coverage unless you choose the Preferred Life Rates option, which may result in lower premium rates, or you choose to increase the amount of your coverage. If you choose the Preferred Life Rates option or increase your coverage amount, you must complete a Statement of Health Form.

To Port your Basic and Supplemental Term-Life and AD&D Insurance:

Complete and submit the Life Insurance Portability Form to the Employee Benefits Administration office within 31 calendar days from your last day worked
Employee Benefits will complete "Record Keeper" verification section and forward the application to the insurance carrier for processing
Evaluate your premiums using the Portability Rate sheets. The insurance company will bill you directly for these premiums

Application for Conversion

Conversion allows you and your covered dependents to convert some or all of your existing term life and AD&D policies to individual whole life or accident policies. You can convert Basic and Supplemental Life and AD&D when you lose this coverage for any reason (e.g. termination or retirement from employment, move to a non-benefit eligible position, spouse or dependent no longer eligible for coverage (divorce, age-out).

To convert your Basic and/or Supplemental Life and AD&D Insurance:

Submit the Notice of Group Life Insurance Conversion Privilege to the Employee Benefits Administration office within 31 calendar days from your last day worked
The Employee Benefits Administration office will complete and return the Notice to you, which provides the necessary information required for a Conversion Application
Call 877-275-6387 for a local Metlife financial professional to contact you directly, usually within 48 hours of your request, to complete a Conversion Application and determine your rate.

FAQs

Why should I consider Supplemental Life Insurance?

Life insurance can be an important step in safeguarding your family’s overall financial plan. You may have already considered purchasing term life insurance, or you may already have insurance through another source, but have you considered all the ways your family relies on you and how term life insurance can help bring some peace of mind to both you and those you would leave behind?

How much of life insurance do I need?
Experts recommend that you have at least five to ten times your annual income in life insurance protection. If you don’t think you already have as much coverage as you may need, this is your opportunity to secure additional protection for your family. You can purchase the amount that’s right for you.

Do I really need life insurance if I don’t have any dependents?
Many people assume that if they don't have dependents, they don't need life insurance…but that is not always the case. If anyone would be affected financially by your death for any reason — including funeral expenses, hospital bills, or mortgage, student loan or credit card debts — supplemental term life insurance policy can help cover these types of expenses. You should also consider parents or siblings who, while not your dependents, may receive financial support from you.

Do I have enough of life insurance?
Most people are confident with their decision to purchase life insurance to help with funeral expenses, estate administration costs, debts and medical expenses not covered by health insurance. When considering these costs, it’s vital to factor in expenses like your mortgage, college tuition, a spouse’s retirement, and the cost of services you currently provide which may need to be paid for in your absence (such as home maintenance, tax preparation, etc.) as well as hidden expenses currently paid for by your employer (such as healthcare, retirement funds and other benefits). Moreover, many people forget that certain life events result in an increased need for life insurance. For example, your children may be getting closer to college age, your spouse may not be working, or you may be supporting aging parents.

Will I have to keep track of another monthly bill?
The City makes it possible for you to purchase this coverage at group rates through convenient payroll deduction, so your peace of mind is as affordable and easy as possible. Conversion and Portability options allow you to take your coverage with you if you change jobs. And in the event that you become totally disabled, your coverage may be continued with no premiums due.
How do I view/update my beneficiary designations?
You can view and update your beneficiary designations at any time. Simply follow these steps:
1. Log on to eBenMesa (if you need assistance with your login information, call Employee Benefits)
2. Click on "Beneficiary Designations"
3. Your chosen beneficiaries are listed on the right side of each section. You can choose to edit or remove them.
4. You can enter a new beneficiary, save and then update the distribution amounts.
Basic Group Term Life Insurance and "Other Imputed Income"

Q. How much Basic Life/ADD Insurance coverage does an eligible employee receive with the City and who pays the premiums for this coverage?

A. Basic Life/ADD insurance coverage is paid 100% by the City and is automatically enrolled when an eligible employee is first eligible and equals one times annual base salary rounded up to the next nearest $1,000 e.g. if base salary is $61,299, basic life/ADD coverage amount is $62,000 each. Higher amounts of coverage are provided to Executive Pay plan employees and fixed amounts of coverage are provided to Elected Officials.

Q. Is basic life/ADD insurance a taxable benefit?

A. This is a tax-free benefit for eligible employees, except for City paid basic life coverage (not ADD coverage) amounts above $50,000 per individual. The IRS calls this “excess coverage” or “taxable fringe benefit coverage”.

Q. What is basic life insurance imputed income?

A. Imputed income refers to certain employer paid benefits received from the City that are not part of salary or wages, but under IRS regulations are a taxable value received from the employer and part of individual income as imputed income. Examples of benefits-related imputed income include group-term life insurance exceeding $50,000 and health insurance for a committed partner and/or committed partner families’ coverage that is considered non-qualifying for favorable IRS tax treatment.

Q. How is the taxable benefit part of basic life insurance processed in our Payroll system?

A. Taxable life insurance coverage is processed as a taxable Imputed Income amount in the first two pay checks of each month. The per $1,000 “excess coverage” amount is multiplied by the employee’s age-band placement for the standard IRS cost of each $1,000 of “excess coverage”. Imputed income is recorded on a pay stub in the “Employer Paid Benefits” section and is called “Other Imputed Tax” with both current and year-to-date entries.

Q. What are the age-bands for life insurance imputed income calculations?

A. Age bands are 5-year increments from 25 and under, 25 to 29, 30 to 34, 35 to 39 and so on, up to the last age band which is age 70+. Each age band has a different cost per $1,000 and that cost sharply increases as age and amount of excess coverage increases. The range of cost is as low as 5 cents per $1,000 for the under 25 age band and as high as $2.06 per $1,000 for the 70+ age band.

Q. When is age-band placement for basic life insurance imputed income evaluated each year?

A. Age-band placement is evaluated annually at the beginning of each calendar year for any needed changes to imputed income amounts for the upcoming year and to spread the effect on net pay over as many pay periods as possible throughout the year.

More FAQs

Vendor Contact

MetLife Life Insurance Group Claims

Hours of Operation

Basic Life Insurance

Accidental Death and Dismemberment (AD&D)

Business Travel Accident/Commuter Life/Accident Insurance

Supplemental Life Insurance

Supplemental Life Insurance Monthly Premiums (per $10,000 of coverage)

Beneficiaries

Application for Portability

Application for Conversion

FAQs

How much of life insurance do I need?

Do I really need life insurance if I don’t have any dependents?

Do I have enough of life insurance?

Will I have to keep track of another monthly bill?