Q. How does life insurance pay when I retire? I don’t understand how it is reduced. If I keep the basic life insurance and die at 85, how much insurance will there be? A. How much basic insurance there will be depends on the level of coverage you elect when you retire. Here are the choices: No reduction: You retain the same amount of basic insurance you had when you retired. You continue to pay the premiums for the rest of your life. 50 percent reduction: Your coverage is reduced by 1 percent per month beginning at age 65 until…