It’s that time of year again. As we head into November and December, its time for (no, not pumpkin spice lattes), but open enrollment for benefits. For many, understanding the benefits provided by your employer can be daunting. Below is an outline on topics to evaluate during open enrollment season.
Optimize your Health Insurance
This is a great time to reassess your current health insurance plan to ensure that it is still a good fit for the upcoming year. If you foresee more health matters in the coming year, selecting a lower deductible plan may help you save money. If you don’t use your health insurance often, a high deductible plan may make more sense. If your high-deductible plan offers an HSA (health savings account), are you utilizing this to increase tax savings?
Evaluate your Retirement Plan Saving
Open enrollment offers a reminder to look at what you are saving towards retirement. Do you have the capacity to increase how much you are saving towards retirement? Has your tax situation changed over the last year? Does your employer offer Roth and/or pre-tax contributions with your retirement plan? Which is best for you? Review your investment options and make sure your beneficiaries are correct, too!
Take a Look at Life and Disability Insurance
It is common for employees to acquire life insurance through the group offering at work. This is a great opportunity to make sure you aren’t paying too much for life insurance. Although acquiring life insurance through work may be easy, you could end up saving money by getting a private term insurance policy on your own.
Disability insurance protects your future earnings. Your company may offer short and/or long-term disability, so take the time to understand the policy and know if a private policy may be beneficial.
Review Voluntary Benefits
Did you acquire a new pet during the pandemic? Do your estate plans need to be reviewed or updated? Pet insurance, legal services, accidental death & dismemberment insurance are all examples of extra benefits your employer may offer. Take the time to review these benefits offered by your employer and identify if you would like to add or remove any of these extra benefits.
When in Doubt, Reach Out
Although open enrollment comes at about the same time each year, it can be an overwhelming time for employees. As CERTIFIED FINANCIAL PLANNERS™, we can help you navigate open enrollment to make sure you are optimizing the benefits offered by your employer. Contact us if you have questions about your benefits or would like to learn more about the services we provide.
