Today marks National Employee Benefits Day! This day serves as a reminder of the importance of employee benefits and the impact they have on the well-being of individuals and their families. At Higginbotham Public Sector, we’d like to take some time to showcase four essential benefits you should be budgeting for each year. Medical, disability, and life insurance as well as retirement savings make up the foundation of benefits as they are essential for all employee benefit plans.
Enrolling in medical insurance is an essential step towards protecting yourself from the high cost of medical treatment. Without insurance, a sudden illness or injury could lead to financial devastation. Meanwhile, preventive care, which is often covered by insurance, can lead to improved health outcomes and early detection of potentially serious conditions. With medical insurance, you and your family can focus on leading healthy lives with routine healthcare visits. Be sure to carefully review your options as each medical plan has variances such as deductible costs, in/out of network incentives, and co-insurance contributions.
Disability insurance is a benefit that often times will fly under the radar. Contrary to popular belief, disability insurance comes is useful in the event you become disabled. Employers typically offer short- and long-term disability benefit packages. For educators, you may be offered educator disability, which is a combination of short and long term. With disability insurance, a portion of your average paycheck will be provided in the wake of a disability. This is especially helpful when considering that 48% of home foreclosures occur due to the homeowner being diagnosed with a disability and not being able to afford their typical lifestyle.1
Funeral costs can be expensive, especially when families have to scramble to raise funds to cover the expenses of the death of a loved one. Life insurance can be daunting since there are so many different plans available. However, it is one of the most important benefits you should be budgeting for. The good news is that it’s affordable and doesn’t cost a fortune. When going over your options for life insurance, the two to keep in mind are group term and permanent. Group term is more affordable and offered through your employer while permanent is owned by the employee and lasts through retirement. Having the affordability of group term and the stability of permanent life insurance make having both extremely advantageous for your loved ones.
Retirement. It’s something we all dream of doing once we reach the retirement age. However, retirement will be difficult if you don’t start saving now. Whether through a 401(k), 403(b), or an IRA, it is important to start saving with a retirement plan now to live comfortably when you retire. Choosing the best plan is ultimately up to you and what your future needs may look like. Be sure to do your research before settling on a plan and do it as soon as possible.
Budgeting for medical, disability, and life insurance as well as your retirement savings is one way to celebrate National Employee Benefits Day. Another way would be to review your current benefits package and upcoming benefit offerings. Plan participants can reach out to administrators for any questions that arise. Resources such as flyers, videos, and more are always available. Remember that benefit education and awareness is important year-round. Benefits play an important role in making health care affordable. Additionally, employee benefits are your employer’s way of showing their appreciation and value of their employees, so make sure to take advantage of having these handy benefits ready for you to enroll in!