HR Q&A – How Do We Handle Benefits After the Death of an Employee?

Losing an employee is unimaginable. The paperwork that follows shouldn’t make it harder — but it does require attention. Here’s what you need to know courtesy of our HR partner, Mineral.

Benefits with beneficiaries

Life insurance, retirement plans, and health savings accounts all have named beneficiaries. Your job is to move quickly and compassionately. Contact your broker and insurer to start the death claim process, get the right paperwork to the beneficiary, submit it, and follow up until the claim is paid. Don’t leave a grieving family waiting because someone forgot to follow up.

Benefits without beneficiaries

Group health insurance, dental, vision — these get terminated, not transferred. The qualifying event is the date of death. Whether coverage ends that day or at the end of the month depends on your plan document. Read it. That date matters more than you think.

Don’t forget COBRA

If the deceased employee had dependents on their health plan, federal COBRA — or your state’s mini-COBRA — likely applies. Eligible dependents must be offered continuation coverage. Missing this step creates legal exposure. Get the notice out promptly.

Have a process in place before you need it. When the moment comes, you won’t want to be figuring it out from scratch. If you’re unsure what your plan documents say or whether your COBRA obligations are being met, that’s worth a conversation with your HR partner now.

This blog does not constitute formal HR or legal advice and does not address state or local laws. Our HR Resource Center by Mineral offers further guidelines for this and many other topics. For a small additional fee you can also speak to a live HR Specialist. Contact your friendly APlus Payroll CSS for further information (including login details) or login here. Want to know how we can help your Payroll or Time & Labor process? Please contact us here. Consultation is friendly and free!