Each fall, millions of employees face the same question: Which benefits should I choose during open enrollment? While it can feel overwhelming to sort through healthcare plans, insurance options, and other benefits, this is one of the best opportunities each year to make decisions that directly impact both your finances and your well-being.
Here are the key areas to review before you click “enroll.”
1. Health Insurance: Look Beyond the Premium
It’s tempting to choose the lowest monthly premium, but that number doesn’t tell the full story. Compare deductibles, copays, and out-of-pocket maximums. A higher-deductible plan may make sense for someone who rarely visits the doctor—especially if it comes with a Health Savings Account (HSA).
Also, double-check:
- Are your doctors and hospitals in-network?
- Does the plan cover your prescriptions affordably?
- Do you anticipate big medical expenses next year (such as a procedure, pregnancy, or ongoing treatment)?
2. Savings Accounts for Healthcare Costs
If your employer offers one, an HSA is one of the most powerful tax tools available. Contributions are tax-deductible, investments can grow tax-free, and withdrawals for qualified medical expenses are also tax-free. Unlike FSAs, the money rolls over year to year.
If you don’t qualify for an HSA, a Flexible Spending Account (FSA) can still save you money on predictable expenses like prescriptions, glasses, or child care. Just remember most FSAs are “use it or lose it” within the year.
3. Protect Your Income with Insurance
Many people overlook disability insurance, but it may be more important than life insurance during your working years. If you become unable to work due to illness or injury, disability coverage can replace a portion of your income.
For life insurance, check how much your employer provides automatically—often just one year’s salary. Consider whether that’s enough for your family, and if not, explore supplemental coverage.
4. Retirement Contributions
Open enrollment is also a chance to revisit your 401(k) or 403(b) elections. Make sure you’re contributing at least enough to get the full employer match—it’s part of your compensation package, so don’t leave money on the table.
If your employer offers both Roth and traditional contributions, think about your tax picture: pay taxes now for Roth contributions (potentially helpful if you expect to be in a higher tax bracket later) or defer taxes with traditional contributions.
5. Extra Perks You Might Be Missing
Beyond the big categories, employers often provide additional benefits that can add real value. Look out for:
- Dental and vision coverage
- Mental health and wellness programs
- Legal or financial counseling services
- Gym or fitness reimbursements
- Identity theft protection
6. Family and Beneficiaries
If you’re married or have dependents, compare whether family members should join your plan or keep separate employer coverage. Costs can vary widely.
And while you’re updating benefits, take a moment to review your beneficiary designations on life insurance and retirement accounts. These override your will, so it’s crucial they’re accurate.
7. Balance Cost with Value
The cheapest plan isn’t always the best—and the most expensive plan isn’t always necessary. Estimate your likely healthcare expenses, run the numbers, and weigh the total potential cost rather than just the premium.
Final Thoughts
Open enrollment isn’t just a box to check—it’s a yearly opportunity to align your benefits with your goals and priorities. By taking time to review your options across healthcare, insurance, retirement, and additional perks, you’ll be better prepared to protect your health and finances in the year ahead.
