Ins. Cancellation after terminal disability

[WreckInTurn4]

GEORGIA-My mother was employed with a large company. She was diagnosed with throat cancer and had a major surgury and other treatment that left her disabled and unable to work. Her cancer has returned and I have just learned that she may no longer have the life insurance that she had while employed. She is ill and cant communicate well so the details are sketchy. She said that they declined to cover her after her departure from the company and did not offer to convert her to an indepentant policy. She said that they recently contacted her and agreed to honer the policy but she has been unemployed for two years and five months and has not made a payment. I definitely need more details but for now does anyone have any advice?

 

[somarco]

Group term life generally terminates within 30 days following termination of employment. Most policies do have conversion privileges and those rights are spelled out in your group certificate. Some plans also have waiver of premium for total disability but even then the definition of disability is quite stringent.

Your employer should have notified the group term carrier when your mother ceased to be a full time employee and either went on disability or was terminated from the payroll. The carrier (and/or plan administrator) was then obligated to notify your mother of her rights to continue coverage.

If this notice was not sent there are some obligations to attempt to rectify the situation. If conversion was her only option, it is possible the carrier may agree (with supporting documentation) to extend conversion rights back to the original date of eligibility. If they do, back premiums will have to be paid before the conversion policy can be issued.

Contact HR for details.

 

[WreckInTurn4]

Thanks for your response. Your information was very helpful. Ill be contacting HR to see if they can help.