Frequently Asked Questions About Dependent Coverage for Supplemental Benefits

By Allstate Benefits

Last updated: January 0001

Insurance can be a complex subject. Some level of coverage is a necessity for those who want quality health care that won't break the bank, but many people are unclear about how insurance coverage works. In fact, nearly 40% of Americans struggle to understand what their health insurance covers¹. Finding concrete answers to insurance-related questions can also prove to be difficult, with more than one in five Americans saying that they have trouble navigating their insurance coverage and deciphering all the jargon.

Understanding your own coverage can be confusing enough, but there is an additional layer of complexity when you’re also looking for coverage for your family members. Many supplemental benefit plans offer “dependent coverage,” but what does that mean? Who is covered? What is covered for them? How much will it cost to cover them?

We’ve collected a few commonly asked questions about dependents and the various ways they can factor into your decision to sign up for supplemental benefit coverage.

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What is a dependent?

A dependent is a qualifying child or spouse who you would like to cover under your policy. In the insurance world, a dependent is typically eligible to receive benefits from an insurance policy at the request of the primary policyholder. Dependents may receive the same level of coverage as the primary policyholder, but some policies offer varying levels of coverage for dependents—typically a percentage of the amount that the primary policyholder would receive.

Who counts as a dependent?

While there are exceptions, most insurance coverage options allow you to declare your spouse and your biological children (up to age 26) as dependents. Depending on your state of residence and the guidelines laid out by your group policyholder, dependents may also include your domestic partner, adopted children, foster children, and stepchildren.

Are there limitations to adding children as dependents?

While each policy is different, you may typically include your children as dependents as long as they meet these guidelines:

  1. They must be under the age of 26.
  2. They must be your biological children, adopted children, foster children, or stepchildren in your care.

There may be exceptions to these rules depending on the laws or your state or the guidelines established by your insurance carrier or group policyholder.

Are dependents the same as beneficiaries?

No. A beneficiary is designated to receive a payout if a primary policyholder passes away. For example, if you are enrolled in a life insurance policy and pass away, the people who would receive the payout from your policy are your beneficiaries.

A dependent, on the other hand, is a covered spouse or child who is covered by your policy while the policy is still in force. For example, if your children are covered by the life insurance offered by your employer, they are your dependents.

When can I add dependents to my coverage?

For most employer-sponsored insurance plans, you have two opportunities to add dependents to your coverage:

  1. During your employer’s open enrollment period
  2. After you experience a qualifying life event (QLE), such as:
    • The birth or adoption of a child
    • Marriage or divorce
    • Death of an existing dependent
    • Experiencing a change in your employment status

What are some of the things I should consider before adding a dependent to my supplemental insurance policy?

  • Does the potential dependent meet your policy's specific guidelines on dependent coverage? There are sometimes age or health requirements that individuals must meet before you can enroll them as a dependent. Make sure to check the specifics of your plan before you attempt to add someone to your policy.
  • Is there an additional cost for adding dependents to my coverage? There may be an additional premium required if you change your coverage tier to add additional dependents.
  • Are my dependents already covered by another insurance policy? Check to see if your dependents already receive similar coverage under another insurance policy before deciding to add them to your policy.

I am currently covered by major medical insurance, but I am interested in other coverage options. What other types of coverage should I consider for myself and my dependents?

Many companies offer a variety of supplemental coverage options to keep you and your dependents protected against unexpected expenses. Some popular supplemental coverage options include:

  • Accident Insurance
  • Cancer Insurance
  • Critical Illness Insurance
  • Disability Insurance
  • Hospital Indemnity Insurance
  • Life Insurance, including Term Life Options

By supplementing your major medical insurance with coverage options like those listed above, you can provide your family with financial peace of mind in case the unexpected happens. During your next open enrollment period or qualifying life event, review the full suite of benefits offered by your employer and decide if it makes sense for you to enroll in supplemental benefits.

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