Group Term Life Insurance - Is it acceptable to have the following pla

[Guest Kevin Roller]

Is it acceptable to have the following life scedule:

1X salary for all employees except, a flat $500,000 for law firm Partners which reduces automatically to a flat $300,000 for partners once they reach age 60, with further reductions at 65 and 70 if still actively at work.

[Guest]

Kevin,

GTL plans may be "discriminatory". The over $50,000 coverage is compensation to the employee/partner.

The question underlying is whether this reduction in coverage violates ADEA. This is a legal determination that should be resolved.

[KIP KRAUS]

Kevin:

Have you run this by any insurance Companies? Even if the plan does comply with ADEA, insurers may not even write the kind of schedule you are looking for depending on the number of total employees to be insured. In addition, they may not be willing to write a flat $500,000 on the partners unless this amount is reasonably close to 1,2, or 3 times their normal earnings.

[Guest Kevin Roller]

It is quite a large group and I already have it approved on a guaranteed issue basis from a quality Insurance Company. My real question is, does this comply with ADEA. Are these reductions starting at age 60 reasonable and acceptable.