I Am Being Laid Off. Will My Employer’s Group Coverage Continue During My Layoff Period?
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UPDATED: Sep 15, 2020
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It depends. Is your layoff temporary or permanent? Does your company have a salary continuation plan (as some major industrial companies do)? If you work for a company that has such a plan, you will continue to be paid some or all of your wages during the layoff, and your benefits will continue. If you do not have such a plan, but the layoff is considered short term and temporary (such as when a factory is shut down for a few weeks for maintenance or because product inventories have to be trimmed) your life insurance and other benefits will probably continue. On the other hand, if you are being laid off permanently, with no expectation that you will be rehired soon, then your benefits will terminate. You will then have an option to covert your life insurance to a permanent individual policy within 30 days. Other benefits may also have a conversion option, such as benefits under a COBRA plan, which are required by law.