Termination

What Does Termination Mean?

Termination occurs when an employee is dismissed from their job. This can happen either because the employment contract has expired or due to actions by the employee that prompted the employer to end the employment.

The term can also refer to the cancellation of a contract between two parties, such as the termination of an insurance policy.

Insuranceopedia Explains Termination

In the United States, a terminated employee may still receive employer-subsidized insurance for a limited period. Additionally, they may be eligible for unemployment insurance, where the government provides a fraction of their salary while they search for a new job.

Insurance termination can occur in two ways. First, the policyholder may cancel their insurance by notifying the insurance company and surrendering the policy, at which point the company refunds any unearned premiums. Second, the insurance company may cancel the contract, providing advance notice to the policyholder before the termination takes effect.