What is a Qualifying Event and Why is it Important?

Insurance is a critical component of financial stability and well-being for individuals and families. Whether provided through an employer, purchased independently, or obtained through government programs, having access to adequate healthcare coverage is essential. However, life is unpredictable, and circumstances can change that potentially impact your insurance needs.

A qualifying event is a significant life change that allows a person to enroll or make changes to their insurance coverage outside of the usual open enrollment period. These events trigger what is called a “special enrollment period”.

Qualifying events usually coincide with major life transitions and are generally a marriage, divorce, birth, death, change in insurance or job status. These may be things like adopting a child, moving from full time to part time status with a job, or even gaining new coverage through a spouse’s employer.

Understanding when a qualifying event has taken place is crucial for maintaining adequate and insurance coverage. These events and special enrollment periods allow people to adjust coverage especially during these major life events. Without the ability to make these changes people may find themselves uninsured or underinsured.

Keep in mind that without a qualifying event you will likely need to wait for your annual open enrollment period to make changes, cancel, or enroll in new plans.