Features of life insurance plans
November 30, 1999
About three-quarters of employees with basic life insurance in medium and large private establishments have double indemnity coverage.
With double indemnity, a life insurance plan provides additional benefits in the event of accidental death or dismemberment. The double indemnity benefit provides an additional amount often equal to the basic life insurance benefit in the case of accidental death. A portion of the life benefit is paid in the case of dismemberment.
Another common feature of employer-provided life insurance plans is the availability of supplemental coverage. In 1997, 62 percent of employees with life insurance could elect to increase the basic life plan’s benefit amount; supplemental plans may be partially or fully employee financed.
Also, life insurance plans are usually based on a multiple of earnings formula or a flat dollar formula. The "multiple formula" benefit is more prevalent—58 percent of employees with life insurance were in plans that link the benefit amount to employees’ earnings, while 41 percent were in plans that provide a fixed benefit amount.
These data are from the BLS Employee Benefits Survey. Figures in this article are for full-time employees in medium and large private establishments. Learn more about life insurance in Employee Benefits in Medium and Large Establishments, 1997, BLS Bulletin 2517 (PDF 804 K).
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Features of life insurance plans on the Internet at https://www.bls.gov/opub/ted/1999/nov/wk5/art02.htm (visited January 22, 2017).
Recent editions of Spotlight on Statistics
Workplace injuries and illnesses and employer costs for workers’ compensation
Workplace injury and illness data and the costs to employers for workers’ compensation in natural resources, construction, and maintenance occupations.
A look at the future of the U.S. labor force to 2060
Projected long-term trends in the growth, size, and composition of the labor force.
Union membership in the United States
Historical trends in union membership among employed wage and salary workers; union membership by a variety of demographic characteristics.
A look at healthcare spending, employment, pay, benefits, and prices
Spending on healthcare, current and projected employment in the industry, employer-provided healthcare benefits, healthcare prices, and pay for workers in healthcare occupations.
Self-employment in the United States
Trends in self-employment by various demographic and socioeconomic characteristics, including both the unincorporated and the incorporated self-employed, as well as data on paid employees who work for the self-employed.