Updated July 21, 2023
An insurance termination letter, also known as a “termination of benefits letter,” is used by a company to notify an employee that their existing healthcare benefits package will be discontinued after a specified date. Typically provided to an employee after they are fired or laid off from their position, the letter clearly communicates that the employee, along with their spouse or dependents, will no longer be eligible for coverage under the company. It can also be used when a company changes its provider, or when an employee’s specific benefits plan is no longer supported under the company’s package.
The letter outlines important details, including:
- Reason for termination
- Specific areas of coverage (health, dental, or vision) that will be impacted
- When the termination will take effect
- Time-sensitive requirements and consequences for missing them
- Resources for continuing coverage outside the company
Sample Insurance Termination Letter
July 18, 2022
Dear Mr. Cruz,
I am sorry to inform you that your benefits coverage with Kitty Co. will be terminated as of Aug. 31, 2022. After that date, you and your dependents will no longer be eligible for health, dental, and vision coverage under the company’s healthcare plan. As previously discussed, this termination of benefits comes as a result of your job termination earlier this month.
Along with this letter, I am attaching a healthcare resources packet that may provide some options on how you can continue getting healthcare coverage for you and your family. Please respond within 30 days of receiving this letter if you are interested in applying for a plan listed in the packet. Otherwise, all benefits will be terminated as scheduled on Aug. 31.
If you have any questions or would like more information, please do not hesitate to contact me at (213) 123-1234 x123 or via email at a.hernandez@kitty.co.
Sincerely,
Alexandra Hernandez
HR representative
Kitty Co.