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Take Advantage of Open Enrollment


Every year each company offers an open enrollment period. This is your chance to adjust your benefits to meet your current needs. If your company is going to change insurance companies or health care policies, this is generally the time of year that it happens. It is important to carefully consider the different options available and determine if you need to make a change. You should also check to make sure your tax withholdings are set at the right amount.

1. Health Insurance

The first thing you should consider is the health insurance plans that are available to you. You need to determine how much coverage you need and how much you are actually going to use. If you are usually healthy with few visits to the doctor you may opt for a high deductible and high co-payment plan. If you visit often you may save money by going with a lower deductible and lower co-payment plan.

2. Dental Insurance

The second thing you should consider is the dental insurance that is offered. Most dental insurance has a limit of how much they will cover in a year. You need to add up the monthly premiums and see if you would end up paying about that or more for coverage during the year. If so you should opt out. Dental plans make more sense when you are insuring more than one person on the policy. You may want to consider benefits offered by dental discount card, as well. Carefully considering both options will help you choose the best option for your current situation.

3. Flexible Spending Account

Another option to consider is the flexible spending account. This allows you to have money taken from your check before taxes to be used to pay for medical expenses. This is a great way to make more of the money that you already have. The key is to take out the right amount. If you do not use it by the end of the year you will lose the money. Estimate your medical costs. You may want to take out enough to cover your deductible on your health insurance.

4. Other Insurance Options

Employers generally offer several different smaller insurance policies that you can choose from. It is important to consider your responsibilities as you choose between the policies. Generally you do not need long term care insurance until you are in your forties. Additional life insurance might not be necessary as well. You may choose to go with short-term or long-term disability insurance, since this can help you to pay your bills.

5. Your Retirement

You may want to check on your retirement contributions as well. It is important to take advantage of your company match, if you have one. Additionally since you are in your twenties, you will benefit by picking the most aggressive plan that your 401K offers. Be sure that you understand the risks involved before making your choice.

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