What Does Termination Mean?
Termination is when an employee gets fired from his or her job. This is either because the employment contract has expired or he or she has done something that made his or her employer end his or her employment.
This may also refer to the cancellation of a contract between two parties, such as the termination of an insurance policy.
Insuranceopedia Explains Termination
In relation to insurance, a terminated employee in the US still gets his or her insurance subsidized by the employer for a period of time. He or she may also avail of the unemployment insurance in which the government pays a fraction of his or her salary while he or she looks for another job.
In the case of insurance termination, this can happen in two ways. The first is when the policyholder cancels his or her insurance. He or she notifies the insurance company and surrenders the policy. The company will return the unearned premiums. The second is when the company cancels the contract. It notifies the policyholder ahead of the time of termination when it decides to do this.