Is it illegal for an employer to reduce the value of employer paid term life insurance when I reach 65?
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Is it illegal for an employer to reduce the value of employer paid term life insurance when I reach 65?
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?
Asked on February 13, 2018 under Employment Labor Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
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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