Life insurance for older workers at small establishments

Life insurance is provided to most full-time employees in small private establishments. However, many plans reduce coverage for older active workers and there is often no coverage for retirees.

[Chart data—TXT]

Many plans reduce coverage for older workers only once, usually to 50 percent of the original life insurance amount. Most reduce it in several stages. For example, at age 65 coverage may be reduced to 65 percent and then to 50 percent at age 70.

Nearly four-fifths of workers who had been covered by a life insurance plan while they were active employees received no coverage as a retiree. Among those with coverage in retirement, the great majority had their benefit reduced at least once.

The Employee Benefits Survey produces data on participation on a variety of non-wage compensation items. More information on benefits in small firms is available in Employee Benefits in Small Private Establishments, 1996 BLS Bulletin 2507 (PDF 530K).