Open Enrollment: Your Must-Do Review


Insurance, Life Insurance


November 01, 2018

This is the time of year when employers let workers make changes to their benefit plans. I know many of you don’t bother to review, and just keep everything the same. That can be a costly mistake. Please use your current open-enrollment to give your workplace benefits a check-up:


• Are You Contributing at Least 10% to the Retirement Plan? If your contribution rate is lower, you need to change it right now. Saving 3% or 5% of your salary each year is not going to build the savings you need to retire comfortably?


• What are the Copays and Coinsurance Rates for Your Health Insurance? Many employers offer a few different health plan options. But the features of a given plan change from year to year. Make sure you know what’s in store for 2019. If anyone in your family has a chronic condition that requires medication, confirm what the copay (if any) will be next year. Insurers often move different drugs into more expensive “tiers” that require consumers to pay more.


• Check out the High Deductible Health Insurance Plan. If you are relatively young and in good health, and you have the savings to cover a high-deductible, this can be a smart option. Once you are enrolled in a HDHP you are eligible to contribute to your own personal Health Savings Account (HSA). An HSA is packed with tax breaks. Your contributions are tax deductible, the money grows tax-free and when you make a withdrawal to pay for a health care expense, there is no tax. Yep, triple tax free. That’s even better than a Roth IRA! And speaking of retirement, if you don’t need to use the money in your HSA, it just grows from year to year. That makes an HSA a powerful retirement savings account: money you put in today can grow for years, and then in retirement you can use it—tax free—to pay for your health care costs. If your employer kicks in a contribution to an HSA, that’s all the more reason to consider a high-deductible health plan.


• Life Insurance. If your employer offers you life insurance, I want you to check exactly what your beneficiaries will be entitled to. I bet it’s just one or two times your annual salary. That is so not enough. If anyone is dependent on your income, I want you to have much more. Don’t worry, it’s affordable, and as I explained last month it’s not hard to shop and buy the right amount of term life insurance.

Resources & Tools You Need:

Suze Recommends


Saving, Student Loans, Retirement


How to Avoid This College Mistake That Can Hurt the Entire Family

Read Now

Saving


Are You Saving or Spending This Summer?

Read Now

Family & Estate Planning


Podcast Episode - Fourth of July, with Family

Read Now