How to Evaluate Employee Benefits of a Potential Job
Look at the general coverage offered in the package., Check the medical insurance coverage., Look at the dental and vision/eye insurance., Note any accidental death and business travel insurance., Check for life insurance and disability insurance...
Step-by-Step Guide
-
Step 1: Look at the general coverage offered in the package.
Start by looking at the general coverage for healthcare noted in the benefits package.
Check if there are any monthly or per-pay-period costs for the overall benefits plan.
If there is, it will usually be deducted from your take-home pay, often as a pre-tax deduction.
Make sure the cost is reasonable and not something that will make a significant dent in your take-home pay.You should also notice who is covered as part of your benefits.
Is it just you? Family members? Future family members, such as children? Make sure you know the limits and restrictions around your healthcare coverage.
Notice when each component of the benefit begins, such as the first day of work, thirty days after your start date, or a year into your employment.
Check if the general benefits can be taxed, where you will have to pay taxes on them at the end of the year.
Often, life insurance is taxable. -
Step 2: Check the medical insurance coverage.
Look at the type of medical insurance plan offered in the package.
You may be covered under a preferred provider option, where you can pick your healthcare provider.
Or you have a health maintenance organization option or another specific healthcare provider, such as Blue Cross/Blue Shield.
Note which of your medical expenses are covered as part of your company health plan, such as preventative care like massage or acupuncture.
Some plans will cover preventative care and some will not.You should also look at any deductibles offered, such as annual deductibles or per-office-visit deductibles.
Look for a list of co-pays, where your insurance pays a percentage of the medical costs and you pay a percentage of the cost out of pocket.
Notice if there are any exclusions or preexisting conditions, such as a health problem you had before you were covered by the insurance company.
Some healthcare plans will disqualify you from certain services if you have a preexisting condition.
Some companies offer a Health Savings Account (HSA) as part of their employee's healthcare benefits.
This is a tax-advantaged medical savings account that you can use to pay for your health needs. , Read over what you are covered for in terms of dental care.
Some benefits packages will cover dental preventative care like exams, X-rays, and teeth cleanings as well as surgical care like root canals.
Note if the plan covers orthodontic care like braces.
There may be deductibles, co-pay, and annual limits attached to your dental care under the package.You should also read over the benefit listed for vision and eye care.
Some plans will cover expenses up to a certain amount for eye exams, eyeglasses, and contact lenses. , As part of your benefits package, you may be covered up to a certain amount if your death is ruled accidental.
The company may also provide business travel insurance, where you are covered if you are injured or have an accidental death while traveling on business.If this is offered for free as part of the benefits package, definitely opted in.
You do not need to purchase additional coverage for accidental death or business travel as part of accepting the benefits package, unless you want to be covered more in this area. , The benefits may cover the basic expenses in the event you pass away unexpectedly.
Life insurance may be more beneficial the older you get, especially if you have children or a spouse.
You can also often buy additional blocks of term insurance at the market rate if you want to be covered for more money upon your death.You should also check if there is disability insurance as part of the benefits package.
There may be short-term disability options, which will cover sick pay and disability coverage for 90 days to a year.
There may also be long-term disability, which will kick in after 90 days to a year.
Check the percentage amount of your salary you will get on disability as well as how the amount may change over time. -
Step 3: Look at the dental and vision/eye insurance.
-
Step 4: Note any accidental death and business travel insurance.
-
Step 5: Check for life insurance and disability insurance coverage.
Detailed Guide
Start by looking at the general coverage for healthcare noted in the benefits package.
Check if there are any monthly or per-pay-period costs for the overall benefits plan.
If there is, it will usually be deducted from your take-home pay, often as a pre-tax deduction.
Make sure the cost is reasonable and not something that will make a significant dent in your take-home pay.You should also notice who is covered as part of your benefits.
Is it just you? Family members? Future family members, such as children? Make sure you know the limits and restrictions around your healthcare coverage.
Notice when each component of the benefit begins, such as the first day of work, thirty days after your start date, or a year into your employment.
Check if the general benefits can be taxed, where you will have to pay taxes on them at the end of the year.
Often, life insurance is taxable.
Look at the type of medical insurance plan offered in the package.
You may be covered under a preferred provider option, where you can pick your healthcare provider.
Or you have a health maintenance organization option or another specific healthcare provider, such as Blue Cross/Blue Shield.
Note which of your medical expenses are covered as part of your company health plan, such as preventative care like massage or acupuncture.
Some plans will cover preventative care and some will not.You should also look at any deductibles offered, such as annual deductibles or per-office-visit deductibles.
Look for a list of co-pays, where your insurance pays a percentage of the medical costs and you pay a percentage of the cost out of pocket.
Notice if there are any exclusions or preexisting conditions, such as a health problem you had before you were covered by the insurance company.
Some healthcare plans will disqualify you from certain services if you have a preexisting condition.
Some companies offer a Health Savings Account (HSA) as part of their employee's healthcare benefits.
This is a tax-advantaged medical savings account that you can use to pay for your health needs. , Read over what you are covered for in terms of dental care.
Some benefits packages will cover dental preventative care like exams, X-rays, and teeth cleanings as well as surgical care like root canals.
Note if the plan covers orthodontic care like braces.
There may be deductibles, co-pay, and annual limits attached to your dental care under the package.You should also read over the benefit listed for vision and eye care.
Some plans will cover expenses up to a certain amount for eye exams, eyeglasses, and contact lenses. , As part of your benefits package, you may be covered up to a certain amount if your death is ruled accidental.
The company may also provide business travel insurance, where you are covered if you are injured or have an accidental death while traveling on business.If this is offered for free as part of the benefits package, definitely opted in.
You do not need to purchase additional coverage for accidental death or business travel as part of accepting the benefits package, unless you want to be covered more in this area. , The benefits may cover the basic expenses in the event you pass away unexpectedly.
Life insurance may be more beneficial the older you get, especially if you have children or a spouse.
You can also often buy additional blocks of term insurance at the market rate if you want to be covered for more money upon your death.You should also check if there is disability insurance as part of the benefits package.
There may be short-term disability options, which will cover sick pay and disability coverage for 90 days to a year.
There may also be long-term disability, which will kick in after 90 days to a year.
Check the percentage amount of your salary you will get on disability as well as how the amount may change over time.
About the Author
Andrea Taylor
Writer and educator with a focus on practical creative arts knowledge.
Rate This Guide
How helpful was this guide? Click to rate: