Life Insurance for Suspended Employees

[Guest LOMalley]

My employer has indicated that our group life insurance policy does not cover suspended employees because the LI carrier says that suspended employees do not fit the definition of "actively at work." YET, our bargaining agreement says that the employer will provide LI for all employees. A suspended employee is still an employee, no? Does anyone have an opinion on this? Are there other locals that have come across this problem? Our LI carrier says that excluding suspended employees from coverage is an industry norm. Thank you in advance for any help you can provide.

[KIP KRAUS]

I've managed employer group life plans over the years that allow for continuation of coverage during temporary lay off, retirement, leaves of absence and during long term disabilities.

Most group insurers, depending on the size of the group insured, will allow an employer to amend the gruop contract to cover employees not otherwise actively at work. A rule of thumb for having some flexability in underwriting is typically 100 or more covered employees. Some insurers may require 200 or more covered employees.

I would suggest that your employer persue this with the current insurer, and if need be, look for an insurer who may allow for this flexability.