Every year around this time companies all across the land are like, “Here, please take this free money.”
And every year countless employees accidentally reply, “Nah, I’m good.
I’m talking about open enrollment and your employee benefits.
So to make sure you don’t become a statistic here’s a free guide to which benefits are yes’s, maybes and no’s.
(It’s not comprehensive, and you should consult your financial planner for help with yours.)
THE YES’s
– SUPPLEMENTAL LONG-TERM DISABILITY INSURANCE – max it out. The LTDI you get through work is waay cheaper than what you can get on your own.
– EMPLOYEE STOCK PURCHASE PROGRAM – if you’re offered the normal 15% discount, then it’s a no-brainer. If you don’t get a discount, it’s probably a “no”
– LEGAL INSURANCE – no brainer if you do NOT have your estate plan yet. If you’ve already done it, then skip it.
– DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (FSA) – Definite yes, if you have kids. You can save and then spend up to $5,000 a year on your kids through this.
– 401K MATCH – you should be maxing out your 401k, but if you can’t then at the very least save enough to get the company match.
– PERSONAL LIABILITY INSURANCE – This is a rare one, but if they offer it, take it. It’s likely cheaper than what you can get on your own.
THE NO’s
– SUPPLEMENTAL LIFE INSURANCE – It’s a rip-off. Unless you couldn’t get your own policy, don’t pay extra for it at work.
– ACCIDENTAL DEATH & DISMEMBERMENT – Total waste of money. It only covers you if you get run over by a tractor and lose the lower half of your left arm at 2:30pm on a Tuesday. (Not actually, but kinda.)
THE MAYBE’s
– HIGH DEDUCTIBLE HEALTH PLAN (HDHP) + HEALTH SAVINGS ACCOUNT (HSA) – If you expect your medical expenses to be less than $4,000 next year, then consider enrolling in an HDHP, so you can save tax-free into an HSA. If you’re expecting anything major (like childbirth), skip this one for next year.
– HEALTHCARE FLEXIBLE SPENDING ACCOUNT (FSA) – if you’re not enrolled in an HDHP, then do a Healthcare FSA. (You can’t save in an HSA and an FSA at the same time.)
If you’re a Financial Zen Member, we’ll run through these with you during your monthly AIM in October (assuming you’re in open enrollment).
If you’re not an FZ Member, talk to your guy/gal about your sitch.
