After landing a new job, you'll meet with the Human Resources department. They will discuss your new employee handbook, outline your benefits and answer any questions. One thing you should be prepared to do is choose your insurance options. Here's what's available.
Health Insurance
You may be healthy and think you can live without health insurance. However, it's an important resource, especially if you are in an accident or have a medical emergency that costs you thousands of dollars.
Consider joining the employer-sponsored health insurance plan if it's available to you. You'll pay a portion of the premium each pay period and receive valuable coverage. To balance coverage and budget, also research private health insurance options.
Life Insurance
Many employers offer a basic life insurance policy to employees. Its coverage often equals one year of your salary and remains in effect as long as you stay with that employer. If you have dependents, a mortgage or significant debt, you may want a private life insurance policy for added peace of mind.
For employer-related coverage considerations, see Hiring (Insurance Exposures).
Dental Insurance
Dental issues can affect your productivity, motivation and overall health. Consider purchasing dental insurance that pays for regular checkups and common dental work.
Carefully check the dental plan offered by your employer. You may save money by using a dental discount plan offered by the dentist of your choice. For information on employer-maintained property or shared-space coverages, see Common Area Insurance Package.
Disability Insurance
If you become ill or injured off the job, disability insurance provides financial resources that help you manage household bills. Employers offer different disability options, but in general you can choose from short-term, temporary and long-term coverage.
If you work in social services or residential care settings, related coverage information is available at Youth Group Homes Insurance.
Long-Term Care Insurance
To pay for assisted living or nursing home care, consider long-term care insurance. It can be a wise purchase before rates rise with age; consider buying it earlier if you have family histories of conditions that increase long-term care risk.
Cancer Insurance
Cancer insurance pays a lump sum if you're diagnosed with cancer. It can help cover out-of-pocket medical and household expenses and give you freedom to focus on treatment instead of immediate work or financial decisions.
This insurance may be more important if cancer is in your family history. Otherwise, consider setting aside emergency savings from each paycheck to help cover unexpected health costs.
Insurance options can be confusing when you start a job. Become familiar with your choices as you decide whether you need certain policies. For more information, talk to an insurance agent or your Human Resources department.
Frequently Asked Questions
Do I have to take the employer's health insurance plan?
No, you are not required to take an employer plan, but employer-sponsored coverage is often more affordable due to employer contributions and group rates.
How much life insurance should I buy if I have dependents?
Many advisors suggest coverage equal to several years of income plus debts and future expenses, but the right amount depends on your personal financial obligations and goals.
What's the difference between short-term and long-term disability insurance?
Short-term disability covers temporary income loss for brief illnesses or injuries, while long-term disability covers longer periods if you cannot work for months or years.
When should I consider long-term care insurance?
Consider buying long-term care insurance in your 30s or 40s before premiums rise with age, especially if you have family history of chronic conditions.