4 Important Decisions to Make During Open Enrollment at Work

Don't gloss over any of these.

At some point this month, your employer should be kicking off the open enrollment process. During that time, you'll be given the option to choose different types of benefits -- benefits that could be instrumental in saving you money in 2023. Here are four important decisions you may need to wade through in the coming weeks.

1. Your health insurance plan

Companies commonly offer health insurance to employees, and many offer more than one plan choice. It's important to consider the pros and cons of your health insurance options to ensure you have the coverage you need for 2023, and at a price that works.

Typically, when choosing a health insurance plan, you'll have the option to select a lower deductible versus a higher one. And each option has its pros and cons.

With a lower deductible, you'll commonly spend more on premiums each month. On the other hand, a higher deductible will generally leave you with a lower premium. Plus, a high-deductible plan might make it so you're able to participate in a health savings account, which could offer you far more flexibility and tax savings than a flexible spending account.

2. Whether to get life insurance

You may have the option to buy some life insurance through your employer. But before you do, read the terms of that offer carefully so you can determine whether it's worth it. Your employer's policy may not only offer a limited benefit, but also, it may not be portable. That means you may not be able to take it with you if you leave the company.

3. Whether to get pet insurance

Some companies offer workers the option to sign up for pet insurance. If you have a pet at home you need coverage for, it pays to see what costs and benefits your employer's plan choices come with. In some cases, getting pet insurance through your employer could mean reaping savings on premiums -- though that's not guaranteed to be the case.

4. Whether to sign up for a flexible spending account

A flexible spending account (FSA) lets you set aside pre-tax dollars for healthcare spending purposes -- things like doctor visits and prescription copays. If you sign up for a health insurance plan that lets you participate in an HSA, you should know that you generally can't have an FSA at the same time. But if your health insurance plan has a lower deductible, it probably won't be HSA-compatible, in which case an FSA is your next best option.

That said, you'll need to be careful when funding an FSA. You'll need to commit to a 2023 contribution amount upfront. And if you overfund your FSA, you'll risk forfeiting money if you don't deplete your balance next year.

Choosing workplace benefits can be a bit stressful, especially if you're new to the process. That's why it's important to give yourself plenty of time to assess your choices. And if you have questions, ask your benefits administrator for clarity so you're better equipped to make the right call.