The master contract will often contain a reduction formula. This provision reduces the coverage of those insureds who reach a certain age (age seventy is typical). Age discrimination laws (such as the Age Discrimination in Employment Act – ADEA) have slowed down the reduction so that a common clause might provide that, “Benefits reduce to 65 percent of original amount at age seventy and 50 percent of original amount at age seventy-five.”
Reproduced with permission. Copyright The National Underwriter Co. Division of ALM