Is it illegal for an employer to reduce the value of employer paid term life insurance when I reach 65?
Question Details: I recently turned 65 and received a notice from my employer that my employer paid term life insurance would be reduced by 30 effective on the date I turned 65. Is this discrimination age or is this a reasonable cost reduction for the employer?
It is a reasonable cost reduction for the employer, given how life insurance generally works in this nation, and that insurers are allowed to and do generally greatly increase term life costs as you age. One could argue that it is wrong to allow insurers to do this; but since they can and do, the employer may reduce your coverage rather than simply pay enhanced costs.
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