Occasionally, an employer may wish to cancel benefits coverage for a disabled member. Before proceeding with termination, GroupHEALTH recommends that the employer refer to the Canadian Labour Law Guide, and/or consult with a Labour Lawyer.
If the disabled member has qualified for Waiver of Premium, you can terminate their employment without affecting the status of their Long-Term Disability benefits, or any future Life, ASI and/or AD&D claims. These benefits will remain in force until age 65 or recovery, so long as the member continues to satisfy the definition of total disability, regardless of employment status.
GroupHEALTH recommends the employer consider establishing certain guidelines for termination. For example:
- The employer should create a corporate policy regarding termination, which applies to any members who are absent from work due to disability. (For example, benefit coverage may cease after 6, 12, or 24 months of continuous disability on WCB or LTD.)
- This policy must be applied consistently to all members, without exception.
- The employer must give sufficient notice to the member, so the member has an opportunity to obtain coverage elsewhere.
- The employer must provide written notification to the member of coverage termination, and the termination of the employment relationship.