Many of us working full-time jobs receive employee benefits as part of our compensation
package. Those benefits typically include paid time off, sick leave, and life and health insurance. Some companies also offer disability coverage, retirement plans, health savings plans and other benefits. These are nice perks to have, and they can come in handy when you need them. But is this coverage enough? Do you really understand what benefits you have? Do you know where the gaps in your coverage lie? How will you fill those gaps?
The problem I am seeing is that generous employers provide attractive compensation packages to recruit and retain employees. What they don’t do, however, is provide employees with a basic understanding of what those benefits mean or what options are available. They give employees benefits, but not the information they need to plan their lives. In my view, employers should offer financial planning services to their employees…or to at least provide referrals to trusted advisers in the area. That’s not going to change – at least not overnight. Here are some practical tips to help you figure out what to do with what you’ve got:
1) Contact your employer’s human resource department to get a summary of all of your employee benefits. For insurance coverage, find out what type of coverage it is (e.g., health, life, etc.), the coverage limits and the premiums paid (by you and the employer). Note any limitations.
2) Ask a human resources rep at your company to explain each of the benefits. For example, if your company has a 401(k) plan, how can you participate? Does the employer offer a matching contribution? Who administers the plan? Where can you get a copy of the plan document?
3) Next, compile all other insurance coverages and benefits that you own personally. For example, let’s say you have long term care coverage. Gather those documents – premiums, benefits, limitations, etc. – and put them with your employer-provided benefits information.
4) Identify any coverages you don’t have. Do you have short term disability coverage? long term disability coverage? Personal liability coverage?
5) Contact a financial planner like Copia Wealth Management & Insurance Services and sit down with an adviser who is willing to go over your information and to make recommendations. Maybe you have coverage you don’t need, or maybe you’re missing valuable coverages that could protect your family against a future financial loss. Many advisers will provide an initial consultation at no charge. Copia, for example, does not charge a consultation fee for the first visit.
5) With the help of your planner, create a plan that protects your family and your assets while also helping you reach your financial goals.
There might be a bit of work involved in this process, but you’ll gain peace of mind and a solid plan for moving forward while protecting your family. They’re worth it, right?
If you agree, call me at 619-640-2622 for a free, no obligation consultation. I can look at your situation, help you evaluate options and design a protection plan that fits you, your family and your budget.
To your wealth and prosperity,
Copia Wealth Management & Insurance Services