Hassle-Free Health Coverage: How Individuals are Terminated

In some policies, your insurance may be continued only until you reach age 65 -- or become eligible for Medicare -- whichever occurs first.

Coverage will end during the month of the event on the day that coincides with the policy date. For instance, your 65th birthday occurs on August 20 and you become eligible for Medicare on September 10.

Even though your policy date is January 15, your coverage ends on August 15 (the day that matches the policy date during the month of your birthday.

If you have children, their coverage usually ends when they reach age 25 (though some policies will use other ages), get married or are no longer dependent on you for coverage.

Coverage for a child will not end if you have a child that is mentally or physically handicapped, remains dependent on you, and is not eligible for Medicare. But you will have to show proof of incapacity and dependency within 31 days of the child's 25th birthday in order to receive coverage. The insurance company may require you to submit additional proof, but not more than once each year after the child reaches the age 27.

Whenever a policy is terminated due to the above factors, coverage usually will continue for any period in which a premium has been accepted and claims for expenses incurred prior to termination will still be covered.