Benefits

How to Navigate Open Enrollment

Open enrollment is one of the most important windows of the year — and one of the most commonly misunderstood. It is the annual period during which employees can review, select, and make changes to the benefits their employer offers for the upcoming year. Once that window closes, most changes cannot be made until the following year unless a qualifying life event occurs, such as marriage, the birth of a child, or a job change.

Industry research suggests that more than half of employees default to the same plan annually, even when their circumstances or available options may have changed. Understanding what open enrollment actually involves — and what is at stake — can make the process feel considerably less overwhelming.

What Open Enrollment Is

Open enrollment is a designated period, typically lasting two to four weeks, during which employees make decisions about their benefits for the year ahead. Employees may be able to enroll in benefits for the first time, make changes to existing coverage, add or remove dependents, or opt out of certain benefits entirely. Some benefits are "locked" once selected during open enrollment — they cannot be changed until the next enrollment period unless a qualifying life event occurs.

Why It Matters

Benefits are a meaningful part of total compensation. U.S. civilian workers' total compensation averaged $48.05 per hour, with $15.03 — or 31.3% — allocated to benefits. While 57% of employees report feeling completely or very educated about their company's benefits, 25% report feeling only a little or not at all informed.

Benefit Types Commonly Available During Open Enrollment

Life Insurance

Employer-provided group life insurance is a common benefit offered during open enrollment. Employees may have the opportunity to elect or increase coverage, add supplemental or voluntary life insurance, or add dependent life insurance for a spouse or children. Coverage amounts and available elections vary by employer.

Disability Insurance

Short-term and long-term disability insurance provide income protection in the event of a qualifying illness or injury that prevents an employee from working. Open enrollment is often the window during which employees can enroll in or adjust disability coverage.

Retirement Plans & Other Benefits

Open enrollment may also be an opportunity to review retirement plan contributions, flexible spending accounts (FSAs), health savings accounts (HSAs), and any other benefit offerings newly available for the year ahead.

Questions Worth Asking Before Enrolling

Have my personal or family circumstances changed since last year?
Do I have the appropriate amount of life insurance coverage for my current situation?
Am I enrolled in disability insurance, and do I understand what it covers?
Are there any new benefit offerings this year that I have not previously enrolled in?
Do I have dependents I should add to my elections?

Missing the Open Enrollment Window

Once the open enrollment period closes, changes typically cannot be made unless a qualifying life event occurs — such as marriage, birth of a child, or job loss. Reviewing communications from HR or a benefits administrator early allows time to make informed decisions before the deadline passes.

A Note on Benefits Literacy

Efforts to improve benefits literacy have increased in recent years, but research indicates that 90% of adults still struggle to understand healthcare and benefits information. Asking questions, reading plan summaries carefully, and seeking out resources provided by an employer or HR department are all reasonable approaches.

This article is provided for informational purposes only. Atlanta Life Insurance Company does not provide benefits advisory or financial planning services. Employees are encouraged to consult their HR department, benefits administrator, or a qualified professional for guidance specific to their situation.

Sources

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