By Frank Flores, founder of FamiliaLista · Updated November 3, 2026

Health coverage and workplace benefits after a death

When the family's health insurance came through the job of the person who died, the spouse and children can usually keep it. Under COBRA they can stay on the plan up to 36 months. The employer also owes the family the final paycheck and may hold group life insurance, a 401(k) or a pension. One call to HR starts all of it.

How do you keep the health insurance?

COBRA covers plans from private employers with 20 or more employees and most state and local government plans. The death of the covered employee lets the spouse and dependent children keep the same coverage for up to 36 months.

• The employer has 30 days to tell the plan about the death.
• The plan then has 14 days to send you an election notice.
• You have at least 60 days to choose COBRA.
• The premium can be up to 102% of the plan's cost, and you get at least 45 days to make the first payment.

Source: U.S. Dept. of Labor, an employee's guide to COBRA.

What if the employer is small?

Texas has its own rules for group health insurance issued in Texas, so ask HR whether your plan is one. A spouse or child covered for at least a year (or a baby under one) can keep the coverage for up to three years after the employee's death. Send the employer a written notice within 60 days of the death. The premium can't be more than it would have been for that family member, plus a fee of up to $5 a month. Someone who isn't eligible for COBRA may also be able to continue coverage for up to nine months. Source: Tex. Insurance Code ch. 1251.

Can you buy other coverage instead?

Yes. Losing job-based coverage opens a 60-day window to sign up for a plan on HealthCare.gov, where you may qualify for help paying the premium. You can apply for Medicaid and CHIP any time of year; in Texas, apply at YourTexasBenefits.com. If the surviving spouse is 65 or older, see Medicare when a spouse dies. Sources: HealthCare.gov, special enrollment period, HealthCare.gov, getting Medicaid and CHIP, Texas HHS, Medicaid and CHIP, U.S. Dept. of Labor, an employee's guide to COBRA.

What about first responders?

When a Texas first responder or other covered public employee dies in the line of duty, the eligible surviving spouse can keep buying health insurance through the employer until they become eligible for Medicare. See Texas line-of-duty death benefits. If the death wasn't in the line of duty, COBRA and the rules above usually apply. Sources: Tex. Government Code ch. 615, U.S. Dept. of Labor, an employee's guide to COBRA.

Who collects the final paycheck?

The final pay belongs to the estate, so the employer pays the executor or administrator who shows court letters. If the person was married and no executor or administrator has been appointed, the employer can pay the surviving spouse who signs an affidavit saying so, including unpaid sick or vacation pay. Unused vacation is paid out only if the employer's written policy says it is. Sources: Texas Workforce Commission, delivery of wages, Tex. Estates Code ch. 453, Texas Workforce Commission, vacation and sick leave.

What else might the job owe the family?

• Group life insurance and accidental death coverage. See how to find a life insurance policy.
• The 401(k) or pension. It goes to the beneficiary on the plan's form. See beneficiaries, POD and joint accounts.
• A survivor pension from a public retirement system, if the person worked for the state, a city or a school district.

Sources: IRS, retirement topics: beneficiary, Texas State Law Library, nonprobate property.

What to ask HR on the first call

• "Has the health plan been told about the death? When will the COBRA notice come?"
• "Is our health plan insured in Texas, and does Texas continuation apply?"
• "When is the final paycheck, and what do you need from me to release it?"
• "Is there group life or accidental death insurance? Who is the beneficiary, and how do we file?"
• "Is there a 401(k), pension or other retirement plan? Who do we call?"
• Ask for each answer by email so you have it in writing.

Checklist

• [ ] Health insurance card, front and back, for each person on the plan.
• [ ] HR's name, phone and email.
• [ ] The plan name and group number.
• [ ] Beneficiary forms for life insurance and retirement plans.
• [ ] The COBRA or continuation notice, with its deadline circled.

Keep a photo of the insurance card, front and back, where your family can find it. If it's lost, the insurer's member services number or app can send a new one.

Frequently asked questions

Sources

• dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra
• statutes.capitol.texas.gov/Docs/IN/htm/IN.1251.htm
• healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/
• healthcare.gov/medicaid-chip/getting-medicaid-chip/
• hhs.texas.gov/services/health/medicaid-chip
• statutes.capitol.texas.gov/Docs/GV/htm/GV.615.htm
• efte.twc.texas.gov/delivery_of_wages.html
• statutes.capitol.texas.gov/Docs/ES/htm/ES.453.htm
• efte.twc.texas.gov/vacation_and_sick_leave.html
• irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary

General information, not legal or financial advice. Rules change; check the official sources above or talk to a licensed professional about your situation.

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