Overage dependants updates: the time is now.
A dependant child might lose group benefits coverage through their parents once they reach the predetermined maximum dependant age under the terms and conditions of their plan design. For the majority of group plans at Empire Life, this happens when the dependants turn 22 years old. However, if the dependant is a full-time student at an accredited post-secondary institution, their coverage may be extended while attending till they reach the maximum age of 26 years old.
Plan administrators are expected to maintain the employee records, including those of their dependants. It is important to inform employees of the age at which their dependants become overage dependants and what they need to do in order to extend the coverage for their children when they are still eligible.
All student information can be updated directly on the Plan Administrator Portal by selecting the appropriate dependant. This information should be provided prior to December 31st. When Empire Life is notified after December 31st, a written confirmation of attendance from the institution is required. These updates are a yearly task since the plan members need to confirm if their dependants are still enrolled in school before the coverage can be extended.
Plan administrators beware
It’s important to stay on top of your employee’s personal information, and that includes their overage dependants. Except for reaching the maximum dependant age, there are other rules that would cancel coverage for dependant children:
1) No longer financially dependant on their parents/living at their parent’s home
2) Reached the maximum predetermined age for dependants (22 years is common at Empire Life)
3) Studies are completed. Coverage is cancelled when they are no longer enrolled in full-time studies.
4) Reached the maximum predetermined age for overage dependants: most plans cancel coverage at their 26th birthday. Dependants will be automatically removed from their parent’s group benefits plan, except for disabled children.
Exception for disabled children:
Different rules apply for disabled children since they may continue to be covered under their parent’s group benefits. In order for Empire Life to continue coverage for a disabled dependant child past the overage dependant age, Empire Life requires a completed Disabled Child Dependant Form to be submitted for review to group.administration@empire.ca.
Tips to efficiently manage your plan and support your members
- At the end and the start of the school year: remind your employees about the age limits for their dependants and what they should do if their kids are (no longer) eligible for continued coverage.
- Regularly check your list of employees and their dependants to avoid paying premiums/claims for ineligible dependants.
