Open Enrollment is quickly approaching and if you haven't already started preparing, you should start now. Incase you didn't know already, Open Enrollment is the period during which employees are presented with a selection of benefits to choose from.
Some businesses offer additional add-ons such as life insurance, disability insurance, and even pet insurance. Here are some key things you'll need to do during this open enrollment season.
1. Review your healthcare options
Choosing a health plan is perhaps the most harrowing decision you'll make by the time open enrollment draws to a close. Now if you've already been getting health coverage, you might be tempted to retain the same plan (assuming it's available) and call it a day, but rather than do that, take the time to evaluate your needs for the upcoming year.
2. Look into long-term disability insurance
If you're injured on the job or are out of work for a limited period of time because of an accident or illness, you can typically fall back on workers' compensation or short-term disability coverage, which most companies provide. But what happens if you're unable to work for an extended time -- say, years? That's where long-term disability insurance comes in handy, and if your employer offers a plan, it pays to look into it.
3. Fund a flexible spending account
Flexible spending accounts, or FSAs, let you use pre-tax dollars to pay for the medical and child care services you're already planning to use. Say you typically spend $2,000 on copayments during the year, and another $2,000 on child care. If you're able to pay for those things via an FSA, and your effective tax rate is 25%, you'll shave $1,000 off your IRS bill.
4. Decide whether to sign up for additional benefits your company offers
Though not all companies offer these additional benefits, a growing number of employers are now offering workers the option to buy pet insurance and opt into a legal plan. The former works just like health insurance for humans -- you pay a premium, and your furry friend's medical services are covered to a certain degree. Whether or not pet insurance makes sense depends on the specifics of your plan, so do your research before signing up.
Remember to review your options, and contact Cosmo Insurance so that you can make the best choices going into 2018.