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Employment Resources

What Insurance Should New Hires Purchase?

By October 10, 2016No Comments

1610-er-3After 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 that’s available to you. You’ll pay a portion of the premium cost each week and enjoy valuable coverage. To maximize your financial resources, find the best coverage for your needs and balance your budget, research private health insurance options, too.

Life Insurance

Many employers offer a basic life insurance policy to employees. Its coverage typically equals one year of your salary and remains in effect as long as you stay with your current employer. If you have dependents, a mortgage or significant debt, you may want to buy a private life insurance policy, too, for added peace of mind.

Dental Insurance

Dental issues can affect your productivity, motivation and overall health. Consider purchasing dental insurance that pays for regular checkups and dental work.

Carefully check the dental insurance policy offered by your employer. You may save money by using the dental discount card offered by the dentist of your choice.

Disability Insurance

If you become ill or injured off the job, disability insurance provides financial resources that help you manage your household bills. Every employer offers different disability insurance coverage options, but in general, you can choose from short-term, temporary and long-term coverage.

Long-Term Care Insurance

To pay for assisted living or nursing home care, consider investing in long-term care insurance. It’s typically a wise investment for employees who are in their late thirties since rates increase after that age. Purchase it sooner, though, if you have a medical condition such as Alzheimer’s in your family history that may affect your rates as you age.

Cancer Insurance

Cancer insurance pays you a lump sum if you’re diagnosed with cancer. It covers out-of-pocket medical and household expenses and gives you the freedom to focus on your treatment instead of on work.

This insurance is important if cancer is in your family history. Otherwise, consider saving money from each paycheck to cover emergency health problems.

Insurance options can be confusing when you start a job. Become familiar with your options as you decide if you need certain insurance policies. For more information, talk to your insurance agent or Human Resources department.