Guest Post: Essential Conversations to Have During Open Enrollment

During open enrollment, families have to make some big financial decisions in a small window of time. However, receiving a big packet of paper or the digital equivalent as email attachments from Human Resources can make the process intimidating and overwhelming.

However, with some planning and thoughtful conversations, you can use open enrollment as an opportunity to maximize your workplace benefits and give your finances a boost in the upcoming year.

If you're pressed for time, here are three key areas you should focus on.

Finding an Affordable Health Insurance Plan

Health insurance is easily one of the biggest expenses families have to deal with. Finding the best plan for your family means you have to look over the numbers. Besides your premiums, you also need to consider other costs, such as deductibles, co-payments, and your out-of-pocket maximums. True, it's a lot to go over, but you want to ensure you're finding an affordable insurance plan that can cover your family.

An option that more families are considering is a high-deductible health plan. As the name suggests, you take on a bigger deductible with this plan in exchange for a lower monthly premium. With a high deductible plan, you can also open a Health Savings Account (HSA) with some substantial financial benefits. With an HSA, you can save ahead for medical expenses pre-tax, your contributions can roll over year to year, and when you use it for qualifying medical expenses, it's tax-free.  

Additionally, some employers will also contribute an amount to your HSA for enrolling. While there are many benefits to having a high deductible plan, you still need to weigh your options because it might not be the right fit for your family. That's why you must compare your health expenses for a few years to get a more accurate idea of how much you typically spend and on what specific expenses.

For those looking at a high-deductible health plan, did you know that Coastal Credit Union offers a Health Savings Account? Check it out to see if it's the right fit for you!

Are Vision and Dental Insurance Worth It?

Another decision included in open enrollment is whether or not you should sign up for vision and dental insurance. Just like with health insurance, you need to run the numbers to see if you're getting the value and coverage you need. Over the past few years, were you able to use those benefits, or did you skip the visits? Depending on your optometrist or dentist, you may find that they offer a direct plan that is more affordable than what you have at work. You have to decide whether being tied to one office is worth the savings.

Why Disability Insurance Shouldn't Be Overlooked

Finally, many young families skip over disability insurance because they feel like it's not relevant to them. However, they could be putting their finances in a precarious situation. Disability insurance covers a portion of your income should you become disabled. Disability insurance from your employer is usually offered as short-term and long-term. While you may feel chances are low that you'll need it, injuries do happen. If your family depends on your income, you should consider signing up for it.

How Coastal Can Help

As a Coastal member, you can always reach out to the wealth management team to make an appointment and have them review your finances with you. They can guide you on optimizing your accounts to get on the right track for your family's financial goals!