Extension of benefits is an insurance term it pays to understand. Bankrate explains it.
Extension of benefits is a provision of some health insurance plans that allows benefits to be extended past the policy expiration date in special circumstances.
When insurance lapses because the policyholder fails to pay the premiums, he or she might not lose benefits immediately. There may be a grace period in which the policyholder can maintain coverage while getting caught up on payments. If the policyholder misses the grace period, he still may be eligible for an extension of benefits if he needs immediate medical treatment. If the policyholder or his dependent is not being treated for a medical condition, insurers won’t grant an extension.
The policyholder or dependent must be receiving treatment in a hospital, rehabilitation center, hospice or other medical facility. In addition, benefits are extended only if there is a treatment plan for that person’s ongoing care. When the patient is discharged, he is no longer eligible for an extension of benefits unless he pays the premiums.
The extension of benefits will be lost if the patient recovers and no longer qualifies as chronically ill.
In the case of benefits being extended to a worker who leaves a job where he had a group health plan, he will lose the benefit extension when he gets another job.
Bob quit a job with health insurance benefits because he had to work nights and it involved too much travel. On the day his employer-sponsored insurance expired, his son had a car accident that put him in the hospital for two weeks. Thanks to an extension of benefits provision in Bob’s employee health plan, his son’s care was covered by insurance.
When his son recovered and was discharged from the hospital, the extension of benefits ended.
Mortgage rates are super-low! Make your dream of owning a home come true.
If you’re a homeowner with one or more vehicles, you may be able to save money on home and auto insurance bundles. As mandated in most states in the US, you need a minimum amount of car insurance to [...]
USAA Insurance is known for its service to the military community and their families. Whether you’re active or former military, an eligible family member, a cadet or midshipman, USAA is available to [...]
21st Century Insurance, a small operation serving the residents of California and Hawaii, is best known for its fast claim turnaround time and customer service. Most business is done online or over the [...]
New Jersey Manufacturers Insurance Company has been selling insurance since 1913. The property and casualty mutual company operates under the name NJM Auto Insurance, providing coverage mainly in New Jersey [...]
A well-established financial institution, Ameriprise also offers auto, home and life insurance policies. It sells standard policies at middle-of-the-road rates. Ameriprise recently sold its home and auto [...]
Don’t panic if your insurer wants to drop you. Calmly follow this course of action.
The American Automobile Association formed in 1902, when fewer than 25,000 cars occupied American roads. Throughout its history, AAA has worked tirelessly to improve safety, producing driver textbooks [...]
Kemper is a multifaceted insurance holding company that sells auto, home, life and small business insurance products. It offers auto insurance through agents and independent brokers in the state of California, [...]
Being a wise money manager can be challenging in “normal” times. Now, the economic uncertainty of the COVID-19 crisis has disrupted the personal finances of many people. If you’re one of them, you [...]
