Choosing the right health and financial coverage is an essential financial planning decision that can save you money on a variety of vital costs. If your employer offers medical and retirement benefits, explore all of their coverage options before making your choice. The open enrollment period is the best time to do this, and the window for this often begins on November 1st. Find out what this means and how to choose the right plan for you by using the guide below.

What Is Open Enrollment?

Open enrollment refers to a set period of the year when you can make changes to health benefits provided by your employer. Different companies have different time frames, usually lasting from a few weeks to a few months. If you aren't sure when your company's open enrollment begins, ask your human resources representative.

During this time, you can make changes to coverage, such as basic health insurance and vision or dental add-ons. If you aren't yet enrolled in an employee health plan, this is an opportunity to do so. You can also choose to change plans or coverage amounts or drop coverage.

The open enrollment period also gives you a chance to adjust your contributions to other financial tools, such as a health savings account or retirement fund. If your employer offers matching for either of these, figure out how much you can comfortably deduct from each paycheck to maximize the matching benefit. 

You may even have the opportunity to enroll in supplemental life insurance, subsidized legal aid, and dependent day care. 

What Should You Consider During Open Enrollment?

When choosing your benefits, identify pressing needs first. Are there any immediate health concerns or upcoming goals, such as pregnancy and childbirth, that would require expanded coverage? If you feel your employer benefits aren't sufficient, you may need to factor additional state marketplace benefits into your financial planning.

It's also essential to address any significant changes, such as adoption or marriage, that would require amendments to who is on your health plan. While spousal benefits and those designed for minor children are usually clear, you may be responsible for other family members who qualify as dependents. Find out who is eligible for coverage on your employer-based plan before finalizing the enrollment.

Setting up a flex spending or health savings plan lets you put pre-tax money into a separate account designated for medical expenses. This is a smart financial planning strategy that provides a cushion if unexpected and costly medical bills arise in the new year.

Sage Wealth Planning provides comprehensive financial planning services to residents in Chesterfield, MO. Their licensed professionals will work with you to support your current lifestyle while finding ways to diversify your investments and increase your wealth in the long term. They give each client individualized attention and will provide the detailed insights you need, from risk analysis to portfolio construction. Visit their website to learn about their services, and call (314) 301-9812 to meet with a financial planning professional today.