For the first time ever, more Americans are covered byemployment-based life insurance than by individual life insurance,according to the LIMRA study, “Employment-Based Life Insurance Ownership Trends(2017).”

Currently, 108 million Americans have life insurance coverage through theirworkplace, compared with 102 million covered by individual lifeinsurance, LIMRA reports. Over the past 50 years, the number ofhouseholds covered by employment-based life has increased by 68percent, to 57 million, while the number of people covered hasnearly doubled, from 55 million to 108 million.

The number of Americans covered by employment-based lifeinsurance will continue to grow gradually, as life insuranceremains one of most important workplace benefits, Anita Potter, thestudy’s co-author and LIMRA’s assistant vice president, workplacebenefits, tells Benefits Pro. Indeed, 73 percent of the 4,167households surveyed by LIMRA believe employers should be offeringlife insurance to employees.

“Convenience is one of the major reasons people like buyingcoverage in the workplace,” Potter says. “They have guaranteedissue with no underwriting, and it’s just something they’ve becomeaccustomed to — especially if they started out in the workforcebeing able to get it at the workplace.”

However, growth in market penetration will be limited bypopulation and labor force dynamics, she says.

“There are more baby boomers retiring, and so there will befewer people in the labor force overall,” Potter says. “We’re alsoseeing an increase in contingent and 1099 workers, who historicallyhave not been offered benefits.”

The rate for employment-based life insurance peaked at 54percent of American households back in 1984, according to thestudy. Since that time, household market penetration has graduallydeclined, and now equals 46 percent. At the “person-level” — adultsand children — market penetration increased steadily through 2004,when it peaked at 37 percent. The person-level ownership ratedropped by 5 percent in 2010, but has since rebounded slightly to34 percent.

While Americans overwhelmingly believe employers should berequired to make life insurance coverage available, the percentageof employers offering coverage is gradually declining, according tothe study. On top of that, once employees make a benefit selection,the majority rarely revisit their decision, while almost half (44percent) never change their life coverage.

However, Potter is encouraged by the increased use of technologyto aid employees in coverage matters, especially during the enrollment process.

“More brokers and employers are using electronic formats toenroll, and we see that as helping employees get life insurancecoverage — especially for smaller employers,” she says.

Emerging decision-support tools should further help educate bothemployers and employees about the benefits being offered to them,Potter says.