What happens to a partner's coverage if they do not pay their premium by the due date while on leave?

When a partner fails to pay their premium by the due date while on leave, the coverage is terminated back to the last premium received date. This means that the insurance coverage lapses and is considered void from the point of the last premium payment up until the overdue payment is made. In many insurance plans, timely payment of premiums is crucial for maintaining coverage. Without payment, the insurer does not have the obligation to provide benefits, resulting in termination of coverage.

This approach ensures that all active participants in a plan remain in good standing and that their benefits are funded by current payments. It emphasizes the importance of compliance with enrollment and payment schedules to avoid gaps in coverage. In contrast, indefinite continuation, automatic extension, or transfer of coverage without payment would undermine the framework of the insurance plan and create financial risks for the insurer.