Did you know that an employee leaving an employee benefits plan has at least 31 days (some insurance companies allow for up to 60 days) to convert that coverage into life insurance and/or individual or family health insurance without medical underwriting?
This provides terminated employees with enough time to replace the group coverage that they had while being employed.
The Supreme Court has decided the onus is on employers to make sure terminated employees are aware of this policy. As well, Ontario Court of Appeal recently determined an employer can’t assume terminated employees will have long-term disability coverage at their new job. It means you could still be responsible for their LTD coverage – even after they leave your company.
Thankfully, we have solutions!
Several insurance companies such as Greenshield offer health and dental coverage to terminated employees. They provide flexibility based on your needs and budget to replace health benefit provided by an employer.
Greenshield's HealthAssist plan allows policyholders to “own” their coverage, which means they have insurance coverage as change jobs or retire.
If you would like more information on Greenshield's HealthAssist product, or want to purchase this coverage online, please click here.
For more information, please send us an email or call us at 1-855-9-ORCHARD (1-855-967-2427).