October 24, 2022
Question: It’s open enrollment at my job, are my benefits enough?
Answer from Becky: Take a look at the benefits offered to you. Common benefits are life insurance, disability insurance, and health insurance.
Life Insurance - If something happened to you would your surviving dependents be able to live off your benefit amount?
If the answer is no, then you should consider additional coverage, either through your employer or an outside insurance policy.
Do you have life insurance on any of your loans? If you do, this could reduce your need for life insurance.
Disability Insurance - If you become disabled would you be able to pay your bills for an extended period of time?
Do you have an emergency fund?
Could you reduce your living expenses at all?
Do any of your loans have disability insurance on them?
If you believe that your cash flow would be tight if you became disabled you should see what additional coverage your employer may offer. Some employers offer supplemental coverage at a much lower rate than an independent policy would cost.
Health Insurance - Compare your options. Would you be better off with a high deductible plan or a low deductible plan?
High deductible plans generally have lower premiums
These plans are often eligible for an HSA
Employers often contribute a set amount to an HSA on the employees behalf
PPO plans have a lower deductible but the monthly premiums are higher than a high deductible plan.
Are there other benefits your employer offers that you aren’t utilizing? Such as legal plans and flexible spending accounts for either medical or dependent care.
We also have a checklist you might be interested in:
What Issues Should I Consider with My Employer-Provided Benefits?
Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters.