Your Richest Life

  • Home
  • About
    • Start Here
    • Meet the Planner
    • Who We Serve
  • Services
    • Financial Plans
    • 401(k) & Retirement Plans for Small Businesses
    • Speaking
  • Press
  • Blog
    • Financial Planning
    • Tax
    • Insurance
    • Investing
    • Employee Benefits & Career
    • Retirement Planning
    • Student loans
    • Estate Planning
    • Kids
    • College Planning
    • Buying a Home
    • Selling a Home
  • Contact

As Featured In

You are here: Home / Insurance / Your Guide to Open Enrollment

Your Guide to Open Enrollment

September 5, 2017 By Katie Brewer

Open enrollment

September is here, which means open enrollment season is here again. This is your chance to review your benefits, increase your coverage or cut back on areas that may not be serving you. If you’ve muddled through your benefits in the past, then this is a new opportunity to understand your benefits and customize them to your needs.

If not much has changed over the past year, it might be fine to continue on with your current setup. But if you’ve had some big life shake-ups (like getting married or having a baby) then it’s especially critical that you update and review your benefits as needed.

Here’s why it pays to look closer at your benefits:

Review Your Insurance Coverage

Your company likely offers many different insurance policy choices, and it can be hard to wade through all that. Here’s a rundown of the benefits your company might offer:

  • Long-term group disability insurance – Disability is critical if you or your family relies on an income. But your company’s disability coverage may not be enough for you, so it’s important you know how much you need. If they don’t cover enough, you may need supplemental insurance.

    Also be aware that sometimes the employer pays your premium. If you pay it instead, you can receive the benefit tax-free.

    Finally, don’t forget to know the waiting period associated with your policy. Although some people get short-term disability to fill that gap, you’d be better off saving up an emergency fund to fund that waiting period.
  • Life insurance – Most life insurance policies through your employer are only going to cover 1-2 times of your salary. But you should really have at least 7 times your salary…and ten would be better.

    You can still go with your employer’s policy, but you should purchase more life insurance to supplement with. This is also a good idea if you plan to leave your job sometime soon since a policy outside of work will travel with you.

    If you’re weighing a term life insurance policy versus a permanent life insurance policy, term is usually the better choice. Permanent life insurance has a cash value and allows you to invest. But if you want to invest, there are better options out there to help your money grow.

Your insurance needs can vary massively from one year to the next. Take advantage of open enrollment to make sure your benefits suit your lifestyle and family.

Retirement Prep

Open enrollment is the perfect time to increase your retirement contributions, and also become more familiar with how much your employer is chipping in. Many companies offer to match your retirement savings at a certain rate. Make sure you’re taking advantage of that opportunity.

You also might have different retirement savings options. Each carries its own features which include pre-tax contributions, Roth 401(k) or Roth 403(b) contributions. You may choose to put your money in both pre-tax and Roth contributions if you want the benefits of both.

Additional Open Enrollment Benefits to Consider

In addition to traditional insurance coverage and retirement plans, some companies provide additional benefits. Here are some other common benefits that could be available:

  • Health Savings Accounts (HSA) – A Health Savings Account allows you to save pre-tax money and withdraw it tax-free for your medical costs. Furthermore, any money left in that account at the end of the year will roll over to the next one.
  • Flexible Spending Account (FSA) – Similar to the HSA, you can save your pre-tax dollars to cover your medical costs. The main difference is that the remaining money in this account doesn’t roll-over to the next year.
  • Tuition Reimbursement – Have you thought about continuing your education? Check with your company because some provide an incentive by reimbursing education expenses. Make sure you’re clear on stipulations for that reimbursement. Your company could have grade requirements or specify how long you need to be with the company.
  • Legal Services – Finally, your company might provide affordable legal services. You could use these to draft a will, a legal agreement, or help with other legal matters.

About Your Richest Life

At Your Richest Life, Katie Brewer, CFP®, believes you too should have access to financial resources and coaching. For more information on the services offered, contact Katie today.

Filed Under: Insurance, Retirement Tagged With: company benefits, insurance, open enrollment, retirement

Receive Your Richest Life blog posts in your inbox.

Please enter your information below to receive bi-weekly updates from Your Richest Life Planning.

Let’s Connect!

  • Email
  • Facebook
  • Google+
  • LinkedIn
  • Twitter

Receive Your Richest Life blog posts in your inbox.

About Katie

Katie Brewer - Certified Financial Planner

Get Started

Clock • Source: Unsplash by petradr http://unsplash.com/post/68620380613/download-by-petradr • License: CC0 - http://creativecommons.org/publicdomain/zero/1.0/

Katie is a Proud Member of …









Explore the Blog

My Tweets

My Tweets

Connect with Your Richest Life

  • Email
  • Facebook
  • Google+
  • LinkedIn
  • Twitter

Katie Brewer, CFP® is a Dallas, Fort Worth, and online fee-only financial planner with over 10 years of experience. Her passion is helping clients get their financial lives in order to start living their richest lives.

Your Richest Life is a Fee-Only financial advisory firm providing honest and independent financial advice. Our clients, the members of Generations X and Y, have a different relationship with money than their parents did.

Disclosures and Forms

2020 ADV Part 2A and 2B (Firm Brochure)

Privacy Notice

Disclosures

Address:
1008 Ridge Rd, Rockwall, TX 75087

[footer_backtotop]

Copyright © 2021 Your Richest Life · Site built by Smarty Pants Media Solutions · Log in