Spring is here - an excellent time of the year to do some housekeeping and get things in order.

We would hazard to guess that group benefits do not come to the top of mind when thinking about "housekeeping"!  But like many other things in our lives, they actually do require at least an annual check-up - and sometimes even a tune-up.

It has been an odd beginning of the year for us, as we have helped facilitate two separate death claims for two different clients. In both cases, the individuals who passed away were fairly young - in their 40s. These incidences are stark reminders that death and illness can be an unexpected and sudden event. It highlights the importance of getting one's "ducks in a row", just in case.

Here, we list a few things to keep at the top of mind for group benefits.

Have Employees Update Beneficiaries and Keep Them Current

When an employee signs onto a Benefits plan, a beneficiary will often be appointed for the Life Insurance coverage.  If an employee dies, the person appointed as beneficiary receives the death benefit.  If there is no beneficiary appointed, the claim proceeds will be payable to the estate, which will go through probate.

It is a good idea to canvas employees annually to make sure that the beneficiaries are up-to-date. Often, employees have life-changing circumstances - a marriage, a divorce, a new child - and they may forget to update their employee benefits when these changes occur. An annual check-in is an excellent exercise in ensuring that should an unexpected premature death occur, the employee's beneficiary designation is current.

Employees should avoid appointing a minor child; if one is appointed, then it is essential to also appoint a trustee who will receive the money in trust on behalf of the child. In British Columbia, a minor child is someone younger than the age of 19.

Update Dependants Too!

As with beneficiary designations, Plan Administrators should also be advised if an employee needs to add a new dependant spouse or child to their plan, or remove a former spouse. It is also important that if an employee's spouse gets covered under a new benefits plan or leaves a their employer's plan, they update the Plan Administrator.  This ensures adequate coverage at all times.

Remember! Due to Insurer’s rules, employees only have 31 days to notify of a change to their status before restrictions may apply for health and dental coverage.