Group Life Insurance

[Gloria_Ga]

What is the name of your state? TEXAS

My husband worked for 10 years for the same company, and had coverage under a Group Life Insurace. The Insurance company is located in the State of California.

He was terminated and he signed an agreement with the employer, that allowed him to receive his salary and benefits for the next six months. He was a top executive. His portion of the life insurance and health isurance fees were being deducted from his paycheck every month. Aftere leaving the company he became sick. Medical expenses were covered by the Insurance company. (They were aware that my husband was really sick)

My question is, did my husband had the right to continue not only health coverage (cobra) but also life insurance coverage after the six month period that he was still in the payroll. He passed away exactly three days after the six months. (Health providers were paid for services provided to my husband for the last three days of his life even though he was no longer insured).

A claim for the life insurance($ 240,000) was filed and it was denied arguing that my husband was no longer a participant in any life insurance plan sponsored by the employer. They even refused to provide me with a copy of the documents stating that they were not obligated.

HELP HELP HELP HELP

THANKS

 

[cbg]

Please accept my condolences on the loss of your husband.

Although the law requires that an employee be allowed to continue group health insurance (with occasionally dental and/or vision coverage being included) through COBRA after termination, it is not legally required that group life insurance be continued as well. While the employer is not forbidden to continue it if they want to, they are not required to and frankly, it is highly unusual when it does occasionally happen. To be honest with you, I'm surprised that they continued the life insurance over the six months with the health insurance; they were by no means obligated to do so.

It's unfortunate given your specific circumstances, but nothing in the law required that they continue the life insurance even for the six months, let alone any time afterwards. I don't see any way that your husband could have been considered a participant on the life insurance on the day of his death unless both the employer and the insurer choose to consider him one. It sounds as if, with regards to the health insurance, the employer and the carrier were willing to be flexible with the last three days, probably assuming that he would have elected COBRA. But life insurance is not covered by COBRA laws and I sincerely doubt that the life insurance carrier would be willing to "buy" a claim.

I'm sorry, but I just don't see a way out for you here.