How do we handle benefits following the death of an employee?

Beneficiary-driven benefits include life insurance, retirement plans, and health savings accounts. Your obligations include starting the death claim process with the broker and insurer, providing appropriate information and paperwork to beneficiaries, submitting paperwork to the insurer, and following up until the claim has been paid.

Benefits that are not beneficiary-driven should be terminated based on the rules in the plan document and insurer contract. The qualifying event date would be the date of the employee’s death, but the plan’s rules will indicate whether the benefits terminate on the date of death or at the end of the month during which the death occurred. This information will be important for administering COBRA continuation for enrolled dependents. Terminating employer-sponsored group health benefits generally requires an offer of federal COBRA continuation coverage, state mini-COBRA coverage, or both for eligible plans with dependent coverage.

This Q&A does not constitute legal advice and does not address state or local law.