Fall Into Smart Benefits: Enrollment Tips

As summer ends and fall begins, employers nationwide are preparing to offer their annual open enrollment for employee benefits. Whether you're new to selecting benefits or a seasoned pro, it's essential to research thoroughly before making your choices.

REVIEW YOUR OPTIONS

Health and other benefit options can change from year to year, even when providers haven't. Health insurance plans regularly adjust premiums, deductibles and other out-of-pocket costs, and employers may pass those increases on to employees. Plans add and remove network health providers and may also adjust peripheral benefits such as chiropractic care and acupuncture.

You'll also want to review any health savings plans offered, including the Health Savings Account (HSA) if you have a high-deductible health plan. HSA contributions are made pretax, and potential earnings and qualified withdrawals are tax-free. In 2027, contribution limits will increase to $4,500 for self-only coverage and $9,000 for family coverage.

ADDITIONAL BENEFITS

While health insurance is the primary "want" for most employees, other benefits may play an important role in your financial and risk planning. Employersponsored life insurance — typically term — can provide a solid foundation of coverage to help protect loved ones. Because it is group life insurance, it typically won't require underwriting — an important consideration for employees with preexisting conditions.

Disability income (DI) insurance may also be important coverage for younger employees, who are much more likely to become disabled than to die at that age. This insurance protects what is many employees' largest asset — their ability to earn a living.

Life insurance, DI and other benefits may also be tax-advantaged, reducing taxable income and, ultimately, taxes. These are a few of what can be many benefit offerings.

Discuss your choices with your financial and tax professionals.