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Right around this time of the year many companies are rolling out their benefit enrollment for 2011. Instead of just picking the same elections you always do, now is a good time to look into the details of your company’s benefits. Here are a few of the major things to consider:
Raising your annual deductible
Raising your annual deductible does two things, it lowers your monthly premium and adds risk of having to pay more out-of-pocket if you have an emergency. You should really look into raising your deductible if you are generally “healthy”. Estimate your medical expenses first and determine if having a higher deductible could be beneficial. I have written before about my high deductible HSA plan and the benefit my family receives.
Long-Term Disability is the most uninsured area in America today. If you are 35 years old, you are six times more likely to become disabled than to die. Generally, long-term disability is cheaper if you buy through your company than on your own. You do not want to be left without any income in case of a long-term disability so see if it is offered through your company’s benefits.
Avoid Life Insurance
Yes, life insurance is a must, however unlike long-term disability insurance, unless you have severe health problems it will usually be more expensive to buy through your company. Instead, shop and compare term life insurance quotes on the Internet and find a policy that is right for you. In addition, if you have life insurance through your employer, it goes away if/when you leave your employer.
Please take an evening, carefully review your coverage options and pick which ones are the best for your family. After investigating, you might realize that your current coverage no longer is right for you, plus you might be able to save some extra money!