Answered by the HR experts of Mineral HR

Some benefits need to be paid or transferred to beneficiaries, while others must be terminated. Both have rules you’ll need to follow.

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.

You can learn more about benefits compliance following the death of an employee in our guide.

Nicholle Peterson, Benefits Plan Manager comments,

“Properly navigating the termination and transfer of employee benefits after a death is crucial—not only to support beneficiaries but also to ensure employer compliance with legal requirements. Attention to plan rules and clear communication with all parties helps protect everyone involved during a difficult time.”

To learn more about our online HR tool, Mineral HR, contact Nicholle at (320) 214-2921.

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