Life insurance policy prices to more than double for some retirees starting Jan. 1
The life insurance rates for about 44,000 retirees will increase by 141 percent -- from
The monthly cost for a retiree will rise from
After the prices were announced, 1,657 people, mostly retirees, dropped the coverage. But 1,320 working employees added life insurance coverage to their benefits package, according to the
Because so many of their retired constituents on fixed incomes howled at the increased prices, the
Commissioner of Administration
The state is legally bound to offer life insurance to its employees.
Dardenne watched as the Appropriations committee members asked few questions, made fewer comments and approved the new contract without any member objecting.
When the contract came up for renewal, the insurer wanted to start linking rates to the ages of the policy holders, rather than the flat monthly fees charged over the years.
The state wasn't interested in changing the form and accepted bids for a new insurer. But the proposals came in with dramatic increases. The state tried again, asking for for another set of bids, and accepted Prudential's offer to sell insurance policies with prices graduated to the policyholder's ages, which allowed younger employees to pay less than retirees.
Term life insurance provides death benefits to beneficiaries if the policyholder dies during the time the policy is in force.
For state government retirees, life insurance is only available if they signed up during their working years. The basic policy is for
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