How can young people maximize their workplace benefits?

Research shows that 53% of Gen Z and 55% of Millennials say there are elements of their benefits package they don’t fully understand.¹ This is why many entry-level workers hesitate to enroll in benefits because they don’t understand the choices available to them. Basic offerings like medical, dental and vision are one thing. But employers are increasingly offering additional voluntary benefits to attract top talent.

Employer resources to help employees understand their benefits:

• Benefits guide or Summary of Benefits and Coverage (SBC)
• Open enrollment emails
• Webinars
• Employer intranet blogs, bulletins or microsites
• In-person or virtual benefits orientations

All employees should take advantage of these opportunities to learn more about their options while navigating the enrollment process. Check out our insurance talk breakdown to translate any confusing benefits jargon. Resources like these can help young professionals better understand terms and phrases don’t understand in their SBC.

When it comes to enrolling in benefits, health and wellness options are crucial. Start with the basics like medical, dental and vision. These can help protect you from developing more serious conditions through preventive care.² Wellness benefits can help employees be more proactive with their health (and potentially any eligible dependents). Think of it like this: consistent doctor appointments, dental visits and vision exams now can prevent costly health issues later in life.

Source: greensensebilling.com

Consequences of the “invincibility” mind set

Prioritizing prevention care options seems like common sense, but some junior employees skip benefits enrollment all together because they think they don’t need benefits yet. Experts call this the “invincibility” mindset. It’s the idea that because a person is young and healthy now, they don’t need things like health insurance or medical care.³

This thinking can have critical impacts on their health and finances. Even if younger employees do enroll in basic health insurance, they may overlook voluntary benefits. These types of offerings are unique and provide extra coverage. Voluntary benefits can help cover unexpected medical costs and reduce financial stress during unplanned medical events for workers like hospitalization and injuries.

Peace of mind and financial security

For employees just staring out, prioritizing their health and exploring voluntary benefits like life insurance, accident insurance, critical illness insurance and hospital indemnity insurance is a strategic step to take. These options pay cash benefits directly to workers when a covered event happens—giving them the freedom to use the money when it's needed most. And because they are offered through the employer, premiums are usually affordable and paid through payroll deduction. For people early in their career without a strong financial foundation, these benefits provide peace of mind and a financial safety net.

Speaking of money, financial benefits can be game changers for setting young people up for financial success!

These three benefits can help workers protect their income, grow their savings and invest in their future:

• Life insurance: Many employers offer voluntary life insurance. It’s an affordable way to help workers protect their families financially. This type of voluntary benefit pays a lump sum to your chosen beneficiary if you pass away. Younger employees can lock in lower rates by enrolling early. Evening if they don’t have dependents now, it’s a benefit that can be strategic in preparing for their financial future.
• 401Ks: A 401(k) is a retirement savings account that lets workers contribute pre-tax dollars. Many employers also match a percentage of what individual employees contribute. This equals free money! The earlier employees start investing in their 401(k), the more time their money gets to grow through compound interest (aka “magic” according to NerdWallet). Even small contributions now can make a big difference by the time retirement comes around.
• Tuition reimbursement: Some employers also provide a financial benefit called tuition reimbursement. This benefit helps pay for job-related courses, degrees or certifications, which lowers the risk of student loan debt. Employees can think of this as investing in the future careers.

Young talent may be looking for jobs with higher paying salaries, but experienced workers know the importance of reviewing the full comprehensive package.

When employees start maximizing their benefits when they’re young, it can set them up for success in the future. Whether it is building financial security, maintaining great health or advancing in their careers, entry-level workers should start using benefits now. Medical insurance is just the starting line for benefits. It’s important that young professionals take the time to explore enrollment communications and resources, so they do not risk losing out on any employer-provided benefits. That would be like leaving free money on the table, and no one wants to do that.

Remember this: start early, stay informed and take full advantage of any employer-provided benefits. For employers looking to learn more about how our products can support organization needs, please contact our team.