If you're among the roughly 35% of employees who report feeling overwhelmed with annual benefit selection and usually just “check the box,”1 this checklist can help you feel more prepared.
1. Know what’s available in your company’s benefits package
Reach out to your HR department to see if your company options have changed. This could include coverage levels, pricing, and whether the benefits you have are still offered. Find out if there are new providers for existing products, or if new products have been added. If you're married or have a partner, do the same with your spouse’s package so you can get the most out of your employee benefits.
2. Understand how deductibles and/or premiums may have changed
Is your company changing its share of its medical plan contribution? Is it moving to a high deductible health plan (HDHP)? That could affect your out-of-pocket medical costs, the benefits you choose, and whether to go with a Health Savings Account (HSA) or Flexible Spending Account (FSA) to help with deductibles. You may want to think about adding supplemental health coverage such as hospital indemnity, accident, and critical illness.
3. Assess any life changes that would call for more or less coverage
Recently married or divorced? Having a baby? Moving to a bigger house? Sending a child to college? That means you now have more day-to-day expenses and future income to protect. This is a good time to consider more life or disability insurance. And if you’re planning to have a child, disability or supplemental health insurance could help cover some maternity expenses.
4. Check your latest income and bonus plan
You may be able to allocate a little more money each month. That could be contributing more to a retirement plan, helping save for a child's college fund, increasing your life insurance level, or getting more disability insurance. Or you could pay down your debt or mortgage. During tough economic times, small decisions can help make a big difference in your family’s financial picture.
5. Review your family’s health history
Is there a history of cancer in your family, or other illnesses such as heart disease, Alzheimer’s, or stroke? Do you or a family member have a chronic condition such a Chrohn's disease or epilepsy? Does your family's active lifestyle put you all at greater risk for an accident or injury?
Supplemental health insurance could provide payments to help cover costs your medical plan doesn’t. Of course, it’s a good idea to consider coverage before you need it — especially since the monthly cost for these types of insurances when purchased through your employer is about the cost of a few lattes.2
In addition to reviewing this checklist, be sure to attend company offered benefits fairs and education seminars where you can learn more about the details of each product. And ask a benefits administrator or carrier representative for guidance or help confirming your product choices.
Did you know you can sometimes change your benefits during the year?
There are times and situations in life that allow you to change your employee benefits outside of the standard enrollment period. Generally, you can change your benefit selections if:
You change employers.
Your status with your employer changes to full-time.
Your marital status changes.
You have or adopt a child.
Your spouse passes away.
If any of these life events happen, it's recommended that you make changes in your benefits within 30 days. Check with your employer about eligibility.
