May 21, 1999 (The Editor’s Desk is updated each business day.)
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. ![Life insurance: Reductions in benefits for retirees, full-time employees, small private establishments, 1996](https://webarchive.library.unt.edu/web/20120925083331im_/http://www.bls.gov/opub/ted/images/1999/May/wk3/art05.gif)
[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).
Of interest
Spotlight on Statistics: National Hispanic Heritage Month
In this Spotlight, we take a look at the Hispanic labor force—including labor force participation, employment and unemployment, educational attainment, geographic location, country of birth, earnings, consumer expenditures, time use, workplace injuries, and employment projections.
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