Updated: Sep 20, 2020
The Importance of Open Enrollment
The only constant in life changes. That is why the “Open Enrollment” period for insurance is so important. It allows you not only to renew your insurance but also to adjust your coverage. When we first sign up for life insurance with our company, we have certain circumstances that determine our choices. As life goes on, our situation evolves. We might become married or have a child. Additionally, we could take on new dependents. Any of these situations will affect our life insurance needs.
Luckily, when Open Enrollment starts, you can make changes for the upcoming calendar year. Open Enrollment is different across companies, but it generally lasts from October to January. The changes will then take effect and you will have life insurance coverage moving forward.
Employer Life Insurance
As a single person, you may have not thought much about insuring your life. Then, once you have a spouse or a child, you start thinking about the future. New additions to your family might cause you to plan for them to receive benefits upon your death. Many employers will offer you the option to secure basic life insurance and accidental death insurance.
This can be especially important in high-risk jobs. Also, if you are someone who takes a lot of risks by doing extreme sports and driving over the speed limit. Make sure you consider all of the variables when making your life insurance choices during Open Enrollment. Remember, it is better to be safe than sorry. Also, most employers offer very cost-effective options that will probably only require minimal monthly deductions from your paycheck.
In conclusion, pay attention to communication from your employer about the open enrollment period. Be proactive about making changes and opt for the maximum amount of coverage for the most reasonable price. You will never regret planning ahead. Your family will thank you for considering them.