Employer claims no coverage for month of death of employee

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A family member passed away and now the insurance company claims that payroll held out monthly premiums for this employee the month AFTER each month of coverage. For example, the employee died in April: the employer claims the employee would have paid for April coverage the following month, May. Therefore, no coverage for April. I think this is crazy and fraudulent. Anyone else been told your insurance premium covers the past month and not the next???”

Asked August 4, 2017

1 Answer


Insurance and coverage are always a tricky subject to explain to most people, so I will be as concise and to the point as I can. If an employee of a company passes away before the next pay term for coverage is used than a company should not have the right to take out premiums for a person who is no longer alive. Personally, I have never experience or read of a situation where an insurance premium covers the past month and not the next. I think this is extremely odd and warrants looking into further. Furthermore it is also worth noting that a lot of companies are unique and that this may just be how this specific company operates their policy. I suggest reading the policy itself and looking for an explanation as to why this works this way, or try calling the company itself and talk to a live agent to get any further questions you have answered properly.

Answered August 7, 2017 by bluemarlin08

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