Health Care Benefits
Health Insurance: Most employers provide a managed-care plan (a lower cost/flexibility HMO, a higher cost/flexibility PPO, or moderate cost/flexibility POS) or a fee-for-service plan. If your employer doesn't offer health insurance, it can cost you $150 to $350 or more per month (HealthCare.gov). If you need insurance between graduation and getting your first job, your parents policy may cover you until age 26. If your employer offers health insurance, evaluate the following:
- Premium: your monthly payment. Some employers cover the entire cost, some split it with you, and some require you to pay 100% of the cost.
- Co-pay: amount you pay for each doctor visit and for prescriptions.
- Deductible: amount you have to pay before your insurance starts paying.
- Vision and Dental Coverage: These may be included in your health insurance. If not, you may have the option to add them for an extra cost.
Life Insurance: Provides a payout after you die to cover burial expenses, paying off outstanding debt, and providing for your family. Debt can only be forgotten after death if there is no money, property, or other assets left behind. If money cannot be collected from your estate, creditors will likely not go after surviving family members except in rare cases (joint accounts).
Accidental Death and Dismemberment: Provides a payout if you die accidentally (not health related) or lose the use of an arm/leg/finger/etc. (inexpensive)
Disability Insurance: Provides a monthly payout if are unable to do your job if you become disabled. (inexpensive)
Flex Account: This allows you to put pre-taxed money into an account in which you can use to pay for medical related expenses. The catch is that you usually have to decide how much to put in at the beginning of the year and whatever you don't use you lose. Most people stock up on items at the end of the year so as not to lose any money.