Asking for a Friend - It's open enrollment at my job, are my benefits enough?

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?


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