There’s so much more to getting a job than just getting a regular income. If you have been in employment for a while, are you sure that you are making the most out of your employee benefits? If you are not sure about the answer, don’t worry, just look at the following ways to make the most of such an opportunity. Find out if you can do more than what you are currently doing. If you are new to the job market, congratulations because now you will get to know how you can maximize your employment perks and set yourself for life.
1. Health Insurance Plans
Currently, there are three popular health insurance plans that any worker can choose from after getting active employment. They include Preferred Provider Organization (PPO), Health Maintenance Organization (HMO), and Consumer Directed Health Plan (CDHP). One thing that you should consider as you choose any of these plans is affordability.
A PPO plan splits the health care costs between you and your employer. If your employer promises to pay a large percentage of the medical costs, you should go for it since that reduces your medical costs. On the other hand, A CDHP allows you to pay less on your monthly premiums. However, it comes with very high deductibles.
If you don’t expect yourself to be a regular hospital visitor, this can be a good plan for you since it allows you to get physicals at no extra charge. An HMO offers both low premiums and deductibles. However, the copay amount is high for physician visits and inpatient care. Use this plan if you are comfortable using the company physician for appointments.
2. Disability and Life Insurance
Too many times we are so focused on providing for those that depend on us that we forget what could happen if the unthinkable ever happened. Perhaps a surgery went bad and left you incapacitated, no longer able to provide for your family. You can decide to sue the hospital, but that’s a long shot. According to Justin Kimball of Preszler Law of Nova Scotia, determining the validity of a medical malpractice case can be a complex and time-consuming process. Therefore, consider disability and life insurance plans.
A disability insurance plan allows you to get half of your present salary should anything happen to you and hinder your productivity. If you want to benefit from such a plan, ensure that you apply for it through your company because it allows you to get a better offer. Additionally, if your company offers term insurance, make sure that you take it because it can help your dependents stay on their feet for a while after you are gone.
3. Stock Options
Since you put so much time and effort into making sure that the firm you work for meets its goals, it’s only fair that you get a stock option. A company that allows you to own their shares wants you to be more responsible and committed. They are also interested in seeing you grow because as the value of the company goes up, your shares also do the same. A firm can either give you incentive stock options or restricted stocks.
Incentive stock units (ICUs) are usually given by upper management, and you can sell them at any time. However, you have to pay a certain amount to get these stocks. If the management offers you such an option, take it because you can get the stocks at a discount, and it can provide you with extra income when you need it. On the other hand, restricted stock units (RCUs) are offered to you for free, but cannot be sold at any time. You have to meet certain company requirements before you can vest them. Go for this option if you intend to stay in the company for a while.
4. Retirement Plans
Sometimes it seems so hard and difficult to put money away for retirement, but it’s worth it in the end. In addition, it’s a requirement by law for your employer to set aside part of your salary for retirement. Some of the popular plans include Roth 401k, IRA, and 401k.
An IRA is an independent plan that allows you to decide the type of investments you make with your retirement money. This can be a great option if you have used up all your 401k money or are self-employed and are looking for a great way to save up. With a 401k, your employer matches your contribution and sends a specific percentage of your salary to your retirement account. Take advantage of this perk because it can give you huge tax breaks. Roth 401k allows you to be matched by your employer and still have some control over how to invest the retirement money. You can go for a Roth 401k plan if you want that extra cash.
You can get the most out of your employment benefits by using the information above to make informed decisions.