Benefits Consultations for Terminally Ill Employees

If an employee is terminally ill, this can mean more than one thing. Sometimes, this prognosis simply means they aren’t going to get any better. Frequently, it means their health is going to deteriorate. Worst case scenario, they have been given less than 6 months to live.

When an employee comes to HR to discuss their benefits after receiving a serious prognosis, you really don’t know how long they will be able to continue to work. Neither does the employee. He or she is probably still struggling with the ramifications of having a life limiting condition. As the benefits expert, you need to take the lead in bringing up necessary decisions for consideration.

Getting Started

Retirement benefits, life insurance, and salary continuation plans will need to be reviewed to ensure the desired beneficiary is named. It may be possible for the employee to “cash out” a life insurance policy early without incurring tax liability, so don’t forget to explore this option. Short and long-term disability programs should be revisited and explained so the employee knows what to expect financially if continuing to work becomes unfeasible.

Take Things Slow

At the same time, you don’t want to rush this process. A series of short meetings might be better than a long session. You can also provide the employee with printed materials (e.g. information about the hospice options provided by their medical plan). They can review this information at home with a spouse or other trusted family member. That way they can discuss some of the more sensitive and emotional issues among themselves and bring you questions as needed.

Vital Areas to Cover

FMLA and COBRA are some of the most critical topics to cover in your benefits review with a terminally ill individual. End of life care is enormously expensive. Your employee will probably want to take steps to ensure their medical coverage is still in effect when these costs are being incurred. A lapse could happen if they must move to part-time status because of progressively worsening ill health. Or, they might be automatically terminated for prolonged absence (past the 12 weeks allowed by FLMA) during a final hospitalization.

Be prepared to enlist the assistance of a consultant if there is a question you don’t know how to answer. This is not a time to make a mistake - you won’t have an opportunity to fix it.