As part of a severance package, an employer may wish to offer an extension of group benefits beyond the member’s termination date. Prior approval from the Insurer is required before any extension of benefits can be offered to the member. Benefits extended beyond termination do not include Disability coverage or Emergency Travel Assistance.
The Insurer requires the following information for their review:
- The member’s last scheduled day of work
- Duration of the requested extension
- Benefits to be extended
- Contact your Client Services Representative or Benefits Specialist before offering severance that includes group benefits. Approval or decline is strictly at the Insurer’s discretion.
- Continued coverage in an Employee and Family Assistance Plan (EFAP) does not require pre-approval, as it is employer paid.