Insurance in 401(K) Plans

[mming]

Can participants who have self-directed accounts be offered individual life insurance policies withing their 401(K) plan? The type of insurance being considered by the trustee would be term, so it would be purely an expense item from each participant's account, not an "investment" as there would not be any cash value accumulating. Would there be any discrimination issues, e.g., assigned risks having to pay higher premiums for the same benefit that non-risks are getting? The agent says that males could pay less for insurance through the plan since unisex rates must be used to be nondiscriminatory(?). If that's the case, I wouldn't think any of the females would want to pay the higher premiums this would create for them. I'm also guessing that, in light of the 25% of contribution limit for premiums, a participant would lose their insurance coverage if they stopped deferring. I don't know that much about insurance, but it seems that its advantages are usually outweighed by the complications it causes in qualified plans.