Adding dependents during the enrolment window helps avoid potential delays or extra costs later. This article should help you understand the risks of not enrolling your dependent so that you can make an informed decision.
What is the enrolment window?
- The enrolment window is a 31-day period when you and your eligible dependents can join the benefits plan without having to meet additional requirements.
- If you miss this window, your dependents may be treated as late applicants. Coverage for late applicants is not guaranteed, and the insurance carrier can deny coverage for your dependent.
Medical underwriting may be required
- When a dependent is added late, the insurance carrier may require medical underwriting.
- Medical underwriting means the carrier will request medical information to decide if the dependent is healthy enough to join the plan, and based on this review, coverage may be denied.
Dental coverage limitations may apply
- Even if a late dependent is approved, some carriers apply a 12‑month dental limitation, where coverage is capped at $250 in eligible dental expenses during this period.
Dependent Life coverage may be declined
- If your plan includes Dependent Life Insurance, enrolling your dependents on time ensures the benefit is available to you if a claim occurs. If a dependent is added late, coverage is not guaranteed, and any benefit that would otherwise be payable to you may be declined.
Retroactive premiums may be required
- Late dependent enrolments may need to be backdated to the original eligibility date, and retroactive premiums may apply.
- Retroactive premiums mean you must pay premiums back to the original date when your dependent first became eligible to enrol, and if this applies, the retroactive amount will be deducted directly from your pay by your employer.
Coverage may be declined if retroactive premiums are not paid
If retroactive premiums are required and you do not agree to pay them, the insurance carrier may not allow the dependent to join the plan.