Hidden Opportunities in Your Benefits
Most people spend more time planning their next vacation than reviewing benefit elections that could shape their finances for years to come. Open Enrollment season is here for benefits, and for many people, it means spending a few minutes selecting a health plan and moving on with life.
But open enrollment is about much more than health insurance.
In reality, it's one of the few times each year when you have the opportunity to make decisions that can impact your taxes, retirement savings, insurance protection, and even your estate plan. Taking an extra 10 minutes to review a few key elections today could save you money and help strengthen your overall financial picture in the year ahead.
Here are five areas worth a closer look before you click "submit."
1. Review the Total Cost of Your Health Insurance Plan
It's natural to focus on monthly premiums, but the lowest premium doesn't always translate to the lowest overall out of pocket cost.
As you compare plans, consider factors such as:
- Expected doctor visits and specialist appointments
- Prescription medication costs
- Planned procedures or surgeries
- Deductibles, copays, and out-of-pocket maximums
A higher-premium plan may actually be the more economical choice if you anticipate significant healthcare expenses next year. The key is evaluating the full cost of care, not just the amount deducted from your paycheck.
2. Revisit Your HSA or FSA Elections
If you're enrolled in a qualified High Deductible Health Plan (HDHP), you may be eligible to contribute to a Health Savings Account (HSA).
HSAs are often considered one of the most powerful tax-advantaged accounts available because they offer:
- Tax-deductible contributions
- Tax-deferred growth
- Tax-free withdrawals for qualified medical expenses
This "triple-tax advantage" makes an HSA a valuable tool for both healthcare spending and long-term financial planning.
Unlike many workplace benefits, HSA funds are not "use it or lose it" and can stay invested year after year. If you can afford to pay current medical bills out of pocket, you can maximize this benefit by saving receipts for qualified healthcare expenses to reimburse yourself years later. Often called "shoeboxing," this strategy gives your HSA assets extra time to compound tax-free before withdrawal.
Flexible Spending Accounts (FSAs) can also provide meaningful tax savings, but many plans require participants to use the funds within a specific timeframe or risk forfeiting unused balances. Before enrolling, make sure your contribution level aligns with your expected medical expenses.
3. Evaluate Your Life and Disability Coverage
Many employees assume the coverage available through their workplace is sufficient, but that's not always the case.
Consider whether your current life insurance coverage would provide enough financial support if something happened to you. Major life events such as marriage, a new child, a home purchase, or growing financial responsibilities may warrant additional coverage.
Disability insurance deserves equal attention. While many people insure their homes, vehicles, and personal belongings, they often overlook the asset that funds all of those things: their income.
For most working professionals, the ability to earn an income, often referred to as their human capital, is one of their most valuable financial assets. Protecting that income through adequate disability coverage can be just as important as protecting your home, investments, or other assets.
4. Increase Retirement Contributions if You Can
Open enrollment is an excellent time to revisit your retirement savings strategy.
If you've received a raise during the past year, consider increasing your retirement plan contribution by 1% or 2%. Small adjustments can have a meaningful impact over time thanks to compound growth.
At a minimum, make sure you're contributing enough to receive the full employer match if one is available. Failing to capture the full match can mean leaving dollars on the table.
Even a modest increase today can make a significant difference in your future retirement readiness.
5. Double-Check Your Beneficiary Designations
This may be the most overlooked item on the list.
Beneficiary designations on retirement accounts, life insurance policies, and certain other assets generally supersede instructions contained in a will. If those designations are outdated, your assets may not pass according to your current wishes.
Take a few moments to review your beneficiaries, particularly if you've experienced any major life changes such as:
- Marriage
- Divorce
- The birth or adoption of a child
- The death of a family member
- Changes in your estate plan
This simple review can help prevent costly mistakes and unintended outcomes down the road.
The Bottom Line
Open enrollment is more than an annual administrative task. It's an opportunity to make intentional decisions that support your broader financial goals.
The choices you make today can influence your cash flow, tax situation, risk protection, and long-term financial security for years to come.
If you're working through your benefits elections and would like a second opinion, we're happy to help. Together, we can evaluate how these decisions fit within your overall financial plan and identify opportunities you may otherwise overlook.