Benefit Termination Letter and the Template

If you have been applying for insurance, there must be benefit to expect. Benefit in insurance refers to the services and supplies that the insurance covers. There will be time when termination is due as well.Benefit termination letter must be made to inform it.


What Is Benefit Termination Letter

Insurance benefit termination serves two purposes for the insurance holder. It warns the possibility of benefit loss and provides contact information to secure another resource. The letter is then made to give official notification to the holders.

How to Make Benefit Termination Letter

Let’s get onto the making. Insurance termination letter is not that difficult to make if you know the way. Starting cluelessly won’t get anywhere. So, it is best to look for the right way to make it. Here, we have the step by step procedure to follow below.

  • Address the recipient
  • Inform termination with date
  • Explain the reason for termination
  • Elaborate more on the discontinuation of all programs
  • Provide suggestion to apply for conversion
  • Leave contact info for further questions
  • Sign the letter

Tips to Create Benefit Termination Letter

Writing documents of this kind is not all about following the procedure only. You need to know that you can make better result by taking some useful tips into consideration. Termination letter making is best done this way. So, here are the tips for you.

  • Be precise with the termination date
  • Be factual of the reason for termination
  • Be clear with the information the holder needs to know
  • Be actual that you don’t guarantee for the conversion

Benefit Termination Letter Template

Why don’t you look at termination letter template for better look at the letter? We have one provided for you below. This benefit termination letter should guide you through the making while following the procedure and keeping the tips in mind.

Dear Ms. Hawkins,

I am writing this letter to you to inform of your ineligibility of healthcare coverage under ABC Insurance Company as of January 15, 2021. With all due respect, this termination is not without reason. Your dismissal from the firm is considered misconduct, thus you are no longer eligiblefor insurance coverage.

On the said date, you will be discontinued from all programs. We have the detailed account and decision explained in this letter. The programs you enroll in include Medicare and Medicaid programs. The benefits for each program will be terminated and it applies the same to any dependents enrolled inthem as well.

If you plan on continuing your group insurance, you may apply for conversion under Lean Insurance where the coverage expires. We are however incapable of guaranteeing that you will be eligible for this coverage. If you have further questions about Lean Insurance, you can reachthe administrator at (555)-447-3276.

Inquiries regarding the content of this letter can be directed to the Insurance Benefit Services at (555)-210-2210 or Your file will remain open for 2 months from the date of this letter.


Kyla Vincent

Kyla Vincent


ABC Insurance Company


You may also like...