I would just use the "User Account Properties Update" template.
Works fine for me. Plus if anything else changes, you'll get an alert.
There is also a "User account lockout" rule that is nice to have too if you are managing password changes.
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As pebcak mentioned, there is an out of the box Template watching for more than just passwords.
I wanted to give the Steps to create a new one specific to what you're after. After clicking the white plus button in the upper right, start typing in usermodifyattribute in the top left. Click once on it. That will populate the corresponding Fields. Click and Drag EventInfo over, and type in *password change*.
(you could add a second line looking only for success if desired)
Reviewing your end goal, you might have an issue or two if you are trying to email your end users from LEM.
1. You need to enter all email addresses into LEM that you would like LEM to be able to send an email to.
2. You cannot dynamically populate the Email To address based on the received Event. You'll see from the screenshot, when you select Email as the Action, you statically select addresses to get the email.