Employers Pull Back on Popular Life Insurance Benefits, Surveys Find

September 15, 2017 | By Cyril Tuohy | InsuranceNewsNet.com

One of the cruel little ironies of life insurance is that more people than ever obtain coverage through a group life contract, but fewer employers than ever are offering the benefit.

That represents an obvious opportunity for agents and benefits brokers.

As many as 108 million Americans have life insurance coverage through the workplace, compared with 102 million covered by individual life insurance, according to a new survey published Aug. 30 by LIMRA.

It is the first time that more people are covered by workplace life insurance than by individual policies since LIMRA began tracking data in 1960, LIMRA researchers said.

The number of Americans covered by employment-based life insurance will continue to grow, but only slowly, said Anita Potter, LIMRA’s assistant vice president, workplace benefits.

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