Changing Companies? 4 Essential Tips for Enrolling in New Benefits

4 Essential Tips for Enrolling in New Benefits

Transitioning to a new job is a significant life event that comes with its own set of challenges and opportunities. One of the most critical tasks during this period is choosing the right benefits package. Given that most companies have a 30-day enrollment window, it’s essential to make informed decisions quickly. In this article, we’ll guide you through the key tips for enrolling in benefits.

Supplemental Life Insurance: An Affordable Safety Net

Many people overlook supplemental life insurance, but doing so could be a costly mistake. Group life insurance plans are often offered at incredibly affordable rates, thanks to the cost-saving benefit of group purchasing. This makes it an economical choice that barely impacts your monthly budget. While it’s true that these policies are typically not portable—meaning you lose coverage if you leave the job—they provide a layer of financial security for your loved ones at a minimal cost. Don’t consider this type of insurance as a stand-alone solution for your long-term insurance needs, but do recognize its value as an excellent supplementary option.

Long-Term Disability Insurance: Protect Your Income Stream

Long-term disability insurance should be another non-negotiable when enrolling in your company’s benefits plan. It operates on the same cost-effective principle as group life insurance and provides you with a safety net in unfortunate circumstances. Statistically, one in four American workers will utilize long-term disability insurance at some point in their careers. While these plans do have income limits—sometimes capped at $10,000 or $20,000 per month—having some level of protection is better than none. If your annual income significantly surpasses these figures, it’s wise to invest in personal disability coverage to supplement your employer’s plan.

Health Insurance Choices: Why High Deductible Plans Make Sense

Selecting a health insurance plan can be a complex decision. We recommend considering a High Deductible Health Plan (HDHP) if it aligns with your health needs and financial status. These plans come with a Health Savings Account (HSA), which offers unparalleled tax advantages. HDHP plans generally have lower monthly premiums and higher deductibles, allowing you to save money each month. The tax-free growth within the HSA often outweighs the occasional years when you might have to meet a higher deductible.

401(k) Contributions: Your Ticket to a Secure Retirement

While 401(k) plans aren’t usually part of the standard open enrollment package, a job change serves as an opportune moment to reassess your retirement savings strategy. Whether you have a Traditional, Roth, or After-Tax 401(k), this is the time to verify your contribution levels and adjust them to meet your long-term goals. For those with fluctuating incomes, such as 1099 earners and small business owners, the last quarter of the year is perfect for a thorough review of your financial landscape.

Final Thoughts

With open enrollment season just around the corner for many, or the first 30 days ticking away if you’ve recently changed jobs, now is the perfect opportunity to scrutinize your existing insurance coverages and retirement options. Don’t waste this chance; make sure you’re adequately protected and investing wisely for your future. Your financial well-being depends on the choices you make today.

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The content on this site, provided by Able Wealth Management, is purely informational. While we aim for accuracy and completeness, we cannot guarantee the exactness of the information presented. The views and analyses expressed in this blog represent those of the authors at Able Wealth Management. They should not be considered as investment advice or endorsement of any particular financial instrument or strategy. Any references to specific securities and their performance are purely informational and should not be taken as advice to buy or sell.Before implementing any information or ideas presented, we strongly advise consulting with a financial advisor, accountant, or legal counsel. Investing carries inherent risks, including potential capital loss. Asset values can fluctuate over time and may be worth more or less than the original investment. Past performance does not guarantee future results, and Able Wealth Management cannot ensure that your financial goals will be achieved. Information from third-party sources has not been independently verified by Able Wealth Management. Although we trust these sources, we cannot assure their accuracy or completeness.

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