Financial Considerations for Open Enrollment Season

Open Enrollment comes around once a year, and it’s one of the most important financial decision-making windows you’ll face—yet too often people rush through their benefit selections or simply choose the same options as the previous year. With rising healthcare costs, evolving insurance offerings, and changing family needs, your benefits choices can significantly impact your financial well-being.

At Lafayette Federal, we’re here to empower you to make smart, informed decisions that align with your financial goals. Here’s a comprehensive guide to help you evaluate your employer-provided benefits strategically this Open Enrollment season.

Start by reviewing your current health, life, and disability coverage and any changes in your life circumstances (marriage, divorce, children, health conditions, upcoming procedures, etc.). Then, compare plan types and costs carefully.

Health Insurance: Key Factors to Consider

Compare these elements:

• Monthly premiums
• Deductibles and out-of-pocket maximums
• Prescription costs
• Network size and covered providers
• Anticipated medical needs (e.g., pregnancy, surgery, ongoing care)

Life Insurance: Is Employer Coverage Enough?

Most employers offer basic life insurance (often 1–2x your salary), but that may not be enough if you have dependents or debts. A general rule of thumb is coverage equal to 7–10x your annual income. If the employer plan is insufficient or not portable if you leave the company, consider supplemental life insurance or a personal policy.

Disability Insurance: Protect Your Income

• Short-Term Disability (STD): Covers a portion of your income for short medical leaves (e.g., surgery recovery, childbirth).
• Long-Term Disability (LTD): Protects income in serious or long-lasting disability situations.

Tip: If your employer offers LTD at low cost, it’s often one of the most valuable coverages you can choose, especially compared to the financial impact of long-term disability.

Open Enrollment is also your chance to set contributions for tax-advantaged health accounts like HSAs (Health Savings Accounts) and FSAs (Flexible Spending Accounts). Note: you must be enrolled in an HAS-eligible health plan to contribute to an HSA, not enrolled in Medicare, and not be claimed as a dependent on another’s tax return.

2026 HSA Contribution Limits

Why Maxing Out Your HSA Is a Wealth-Building Strategy

HSAs offer a triple tax advantage:

• Pre-tax contributions reduce taxable income
• Tax-free growth on interest/dividends
• Tax-free withdrawals for qualified medical expenses

Plus, HSAs are portable, funds roll over year to year, and after age 65, you can withdraw for any reason (taxed like a traditional IRA).

FSA Contribution Limits

Important: FSAs are typically “use it or lose it” (unless your plan offers rollover or grace period), so estimate carefully based on expected medical or dependent care expenses.

Here’s a quick checklist to review during Open Enrollment:

• Health insurance (Are deductible/out-of-pocket costs reasonable?)
• Dental & vision coverage (Are orthodontics or glasses covered for family members?)
• Life insurance coverage level (Is it enough to protect your family?)
• Disability insurance (Do you have both STD and LTD?)
• HSA/FSA contributions planned strategically
• Retirement plan match—Are you contributing enough to get the full match?
• Wellness programs—Any financial incentives available?
• Tuition assistance or student loan repayment benefits
• Mental health resources and EAP (Employee Assistance Program)
• Paid time off accrual and parental leave policies

Covering Gaps with Help from Your Credit Union

If your employer’s offerings fall short, Lafayette Federal can help fill the financial gaps:

• Life Insurance and Supplemental Coverage Options through Partnerships
• Personal loans or HELOCs for medical expenses not fully covered
• Retirement and investment guidance (if applicable)
• Financial coaching to review benefits in alignment with your long-term goals