We just finished a large School District Open Enrollment for Employee Benefits. Certainly, it is satisfying to assist employees making all important benefit decisions for the upcoming school year. By the same token, it is somewhat disheartening to know that more than 75% of the employees do not come in for individual consultation. One may asert that those employees do not have changes that need to be made. To the contrary, approximately 25% of those that do come for a review, make a change that they did not specifically intend to make when they walked in the door. Even for changes that employees intend to make, often are assisted with the counsel of a qualified enrollment specialist.
It is not uncommon that well educated people neglect important benefit decisions/changes simply because they do not take the time to consider significant changes that may have taken place in their lives. Are you fiscally responsible when it comes to your benefit decisions?
An administrator that had continued to pay for the most expensive health insurance plan even though all of his children had grown up and were no longer on the plan. This was a man that was very healthy and he himself seldom went to the Doctor. Then there is the employee that never goes to the Doctor but pays an extra $121 a month just to have access to the Co-Pays….just in case she goes to the Doc.
Unfortunately, a young mother never took advantage of a Dependent Care Flexible Spending Account. After 8 years of child care expense, she knows that she could have saved Thousands of Dollars on her income Tax if only she had utilized the Flex.
Many times one does not think about how they will pay their bills if they are hurt or sick and can’t work. If they don’t have disability income protection they are completely self insuring. Perhaps the employee doesn’t need the 14 day elimination period and the maximum benefit?? They may be well served to mitigate some of that risk by taking a 45 or 90 day elimination period with a benefit less than the max available based on their income. I would say “some is better than none” ! Some employees have alot of sick leave built up….and are well served with the longer waiting periods.
When it comes to life insurance, so many rely only on what the employer provides. Term Life rates will continue to increase and eventually coverage will terminate. With Permanent Life insurance rates are level ( can be Guaranteed for Life) and the Death Benefit is Guaranteed Level for Life. Ultimately, Permanent Life insurance will pay an income tax free death benefit if the premiums are paid and the policy is in force. Permanent means “until death do us part”!
In short, often it pays for employees to review their benefits and long range plans, at least annually!!
