Our death in service life insurance policy ceases for a member of staff when he/she reaches the age of 65. Is this illegal age discrimination?
When they implemented the abolition of compulsory retirement, the UK Government recognised that this would potentially send insurance premiums through the roof, as insurance companies would insist on higher premiums to reflect the increased risk of insuring older workers and that many employers might therefore simply withdraw insurance benefits for the entire workforce as a result.
Therefore Para.14 of sch.9 to the Equality Act 2010 provides an exception to the age discrimination provisions of the Act to allow employers to stop providing access to group risk insured benefits, such as income protection, life assurance, private medical cover and permanent health insurance, to employees when they reach age 65 . This age restriction will also rise in accordance with any increase to the state pension age from age 65. Other benefits are not subject to this exemption and should be offered to all employees regardless of age (obviously subject to any qualifying requirements).
So in direct answer to your question, withdrawing death in service insurance from age 65 is not illegal age discrimination.
(Article reviewed December 2017)