It is that time of year!
When you are asked to decide what health insurance plan you want…
What supplemental insurance policies you want, if any…
And how much you want to contribute to your 401(K) or other employer-sponsored retirement plan…
When all you want to do is make it through all the vacations, time off, holiday gatherings, and short staffed work days and find yourself in January!
But, while these are important questions, they do not have to take a lot of time.
For health insurance, look at how often you go to the doctor and what you are usually there for.
If you are fairly healthy, you might be able to choose a lower cost plan. Just make sure you take those savings and actually save them to be used in case you have to cover a copay or deductible.
If you go to the doctor’s often, a higher priced plan that has more coverage and lower copays and deductibles may be the better option in the long run.
For supplemental insurances, it is easy to be swayed by the passion and all those great examples the sales rep uses.
But, how likely are you to actually need them?
If you have no family history of cancer, you most likely will not need a cancer policy (unless you have reason to believe otherwise).
If you are accident prone, that accident insurance may be a good value. Take a look at those low premiums and see what would need to happen for the insurance to pay for itself. If you cannot reasonably expect to break even, it may not be the best option for you.
Remember, insurance companies are in the business of making money. And, they are betting these things will NOT happen to you.
For the retirement account, look at how much the company will match.
That is a 100% return on investment (ROI) and can help cover any fees the plan includes.
Also look at what your investment habits are. While I am not a proponent of government-recognized retirement plans, if that is the only way to get you to invest, it may be worthwhile. At least you will have something saved for your future.
But, if you are good at saving and investing on your own you may want to only contribute up to the company match and invest the rest on your own.
One last note: if you have any questions about the specific options your employer offers, be sure to ask questions until you really understand. Your employer’s HR representative should be able to answer these questions or refer you to an insurance representative who can. Do not settle for just guessing.
These examples are just the tip of the iceberg to get the conversation started. Is there anything you would like to add to this list? I am sure others are wondering the same thing.