May 2021 Issue: Helping Clients Navigate Their Employee Benefits-Helping Clients Navigate Their Employee Benefits by Martin A. Scott

Helping Clients Navigate Their Employee Benefits by Martin A. Scott

Pdf Summary

Employee benefits are an important aspect of overall financial planning that is often overlooked. As financial planners, we can add value by thoroughly reviewing and analyzing these benefits for our clients. Employers have a business incentive to offer competitive benefit packages, but employees may not take the time to understand or review them. This presents an opportunity for financial planners to help clients make informed decisions.<br /><br />Medical coverage is one of the most important benefits offered by employers, and it is crucial to choose the most favorable option. Instead of simply opting for the option with the best coverage, financial planners should consider a client's liquidity, overall health, and family situation. For example, a couple with good health and no children may choose a lower-cost plan with higher deductibles and minimal out-of-network coverage.<br /><br />When it comes to life insurance, obtaining individual coverage is recommended since employer-provided coverage is often insufficient. Employers typically offer coverage amounts ranging from one to three times an employee's annual base pay. Financial planners should assess whether supplemental coverage is available for an employee's spouse and children.<br /><br />In addition to medical and life insurance, employers may offer other valuable benefits such as vision, dental, disability, personal excess liability protection, and legal services. It is essential to evaluate these options and consider whether they should be utilized instead of seeking assistance elsewhere.<br /><br />Overall, reviewing employee benefits is a crucial aspect of financial planning that can provide significant value to clients. By carefully analyzing the details of these benefits and considering a client's specific circumstances, financial planners can help clients make informed decisions that align with their goals and financial situation.

Keywords

employee benefits

financial planning

competitive benefit packages

medical coverage

life insurance

individual coverage

supplemental coverage

vision

dental

disability