Answer:
There are several reasons why an employee or dependent should continue to receive benefits and coverage:
- Usually group insurance plans that are terminated provide an extension of benefits in order for a dependent or disabled employee to continue to receive benefits for an additional period of time, generally for up to 12 more months.
- If an employee dies or gets divorced, their dependents must continue to receive benefits and coverage for up to 36 months.
- Or if the employee must take a leave of absence due to illness, coverage and benefits should continue for 12 months.
- In case an employee is laid off, his/her coverage and benefits should be extended if the termination was either voluntary or for reasons other than gross misconduct (up to 18 months).