Reassure Your Employees About Insurance Benefits After Their Divorce

Marriages end. Healthcare needs don’t. If your employee goes through a divorce, they will already be worried about how their circumstances and state of mind could affect their employment. Support them by being prepared to answer the questions they will inevitably have about their Michigan employee benefits.
insurance benefits after divorce

If your employee was on their spouse’s insurance plan, how can they get their own coverage now?

If an employee was on their ex’s employer-sponsored health plan, with divorce comes the end of that coverage. If your employee has never taken advantage of the benefits your company offers, now they’ll want and need to know everything, but they’ll be daunted about where to start.

Your employee can sign up for coverage outside the regular enrollment period if they have lost coverage from another source. Any major life change should be discussed with your health insurance benefits expert. They will help guide your employees through the shifts in their new reality so they choose the best coverage possible for this time in their lives.

If your employee wants their former spouse off their health insurance, what needs to happen?

It’s not about whether your employee wants their ex off their insurance, it’s simply a matter of when. The laws states that only dependent children and spouse can be covered on your employee’s insurance policy.

Health insurance companies need to be notified when there is a change in marital status. Some insurers view a legal separation as the equivalent of divorce, stopping coverage for a separated spouse before the divorce is finalized.

How will life insurance benefits change?

Sometimes divorce settlements include the naming of a former spouse as a life insurance beneficiary as a sort of insurance policy in and of itself to replace alimony or child support payments that can no longer be disbursed.

This is a personal matter that your employee will have to hash out with their divorce lawyer and their ex. It’s their responsibility to name a beneficiary and, if necessary, change the beneficiary of their life insurance policy, often from the ex-spouse to their children.

Support Your Employees After Their Divorce

The good thing is that your employee has time to prepare for this change so that on the day the divorce papers are officially signed they won’t suddenly be panicking about having zero health insurance.

It’s essential to maintain good communication with your employees about the group benefits your company offers. Let them know they can speak with your human resources team at any time or connect with your insurance specialists to have all their questions answered. Reassure them that the benefits are theirs when they need them and be clear about exactly what’s available.

Michigan group health insurance benefits vary from employer to employer. Understanding the details of the breadth of your own company’s offerings is a complicated matter. Rely on your Michigan employee benefits expert at The Benefits Group to help you support your employees through all the major changes of their lives. Contact us today.