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New Year benefits breakdown: a smarter plan to accomplish your goals

It is a new year, but are you stuck with the same goals...again? According to a 2024 Pew Research survey, 79% of people aged 18 to 65+ said their resolutions were health related. The same study revealed 61% of participants focused on money or finances. Focusing on these two areas of life is common. However, for many people, so is NOT making any goals for the year – or abandoning them after a few months. In fact, 41% of people admitted to only completing a few of their goals or failing to finish them altogether.1

New year resolutions on notepad with coffee and laptop.

Here's a goal that could help you achieve positive results in both categories: This year, try focusing on getting a better understanding of the benefits available to you through your employer. Fully understanding your benefits allows you to take full advantage of resources to improve your health and your finances.

Think of it like this: the start of 2025 is an opportunity to better your health AND your financial wellness. It all starts with a review and breakdown of your employer benefits for the new year. Here's how:

Translate the jargon

The first step is diving into all the insurance materials your company provides. This means taking time to focus and review all of your benefits information. The materials aren't always easy to understand – but the effort is worth it!

Do not let insurance jargon intimidate you! It is important to review your coverage options so you can understand exactly what is available to you. You might have extra wellness benefits that could help you save money AND better your health.

Here's a cheat-sheet for common terms you'll see within your benefits plan:

Jargon Term Clear Definition
Coinsurance Your share of the cost of medical/health services received. This amount is determined after you've paid/met your deductible.
Copayment A fixed amount for services received, such as doctor's visit or a prescription being filled. You are expected to pay this cost at the time you receive the service.
Coverage Effective Date (Effective Date) The date when insurance coverage goes into effect. This can be the date the application was signed or a predetermined date following enrollment (typically January 1 of the following year).
Deductible The amount you are responsible for paying before payments from your insurance provider kick in.
EOB (Explanation of Benefits) A policy summary received after a medical service, procedure or doctor appointment. It explains your claim(s) and payment information, showing what your health insurance will cover. It's not a bill. This document is just a detailed breakdown of what is covered and your expected out-of-pocket costs.
Premium The amount you pay each month (or each year) to keep your insurance policy active. Your premium amount is determined by many factors, including risk, coverage amount and more – depending on the type of insurance you have.

The EOB mentioned above is a great starting point for understanding your coverage options! It will break down costs and define any restrictions or requirements. Need help remembering these terms? Bookmark this Insurance Glossary White Paper to help you decipher insurance jargon anytime.

Check for wellness credits and discounts

Researchers discovered that 87% of employees consider health and wellness offerings when choosing where to work.2 As an employee, you can use these wellness credits and discounts to your advantage! In fact, within the last several years post-Covid, physical AND mental health became top priorities for job seekers. As a result, many employers have added wellness programs and incentives (including financial resources) to their employee benefits offerings.

So, what exactly are "wellness programs"? Healthcare.gov describes them as, "program[s] intended to improve and promote health and fitness...usually offered through the work place, although insurance plans can offer them directly to their enrollees. The program allows your employer or plan to offer you premium discounts, cash rewards, gym memberships, and other incentives to participate.3"

Companies provide wellness programs to attract and retain employees, and also to promote the health of their employees. The goal is to increase healthier habits for team members and as a result, reduce hospital visits and sick days. Some employers even offer cash prizes for completing health tasks throughout the year!

How utilizing employer benefits can improve your life:

  • 56% of employees who participate in company wellness programs say they have fewer sick days due to these programs.
  • 60% of employees say they are also more productive when they work.
  • 30% say they have had a disease detected by these programs, allowing them to begin treatment before it progresses.3

As an employee, you are missing out by not utilizing these employer-provided benefits. If you are looking to save money in 2025, check to see if your company offers any wellness programs and incentives. Companies may even provide credits and discounts for general wellness such as financial planning services, mental health counseling, gym membership, health equipment and more! If it is not clear after reading your benefits package, reach out to your employer's HR department. Do not be afraid to ask questions. Their role is to help you get the most of what you are already paying for in terms of monthly insurance costs.

Let's talk life insurance

Talking about death can be uncomfortable, but preparing for that eventuality is an important part of financial planning. If you do not have life insurance currently, now is a great time to start researching the right policy for your needs. Securing life insurance is a smart strategy to add into your plans for the New Year. Regardless of your age, health or financial status, unexpected circumstances could happen anytime. The purpose of life insurance is to ensure that your loved ones have a secure future after you pass away. Think of it as a financial safety net!

Why group life insurance can save you time (and headaches)

There are various kinds of life insurance, each with its own unique benefits. Many organizations offer life insurance as an employee benefit. When purchasing a plan on your own, you are often left with limited help while navigating the complexities of life insurance. Some common mistakes people make include choosing the wrong type of policy, underestimating their needs and being intimidated by expensive plans.

So, why is it better choosing life insurance coverage from your job compared to buying life insurance on your own? Group life insurance through your employer is often available at a lower premium than individual policies. In many cases, you can have the premium payments deducted from your paycheck automatically, which is very convenient. And group life insurance may be offered "guaranteed issue," meaning there is no required physical, blood tests or medical questions to answer. With fewer questions and medical hoops to jump through, it makes the process simpler! You can even opt for group life insurance if you already have a private life insurance plan too. This can provide you with extra financial security.

For more in-depth information about the benefits of having life insurance, check out this article.

Understanding the benefits of policy riders

Some life insurance policies offer riders, optional coverage options designed as "add on" features. Riders can add a variety of valuable coverage to your life insurance, including additional coverage for spouses and children. One important rider benefit to consider is long-term care. Some group life insurance policies offer long-term care riders, which allow access to a portion of the death benefit over a period of time if the insured requires long-term care at home or in a facility. Long-term care can be expensive – and stand-along long-term care insurance is too. If available with your employer's group life insurance, a long-term care rider can help provide for that need without breaking the bank.

How to supercharge your New Year health and financial wellness goals

Focusing on resources and benefits already available to you can help supercharge your health and wellness goals. Plus, understanding the benefits of group life insurance and knowing which policy riders are available to you through your employer is a great way to improve your financial planning in the new year! Do not let insurance jargon or complex plans hold you back. Take control of your financial and physical well-being today! Remember, your employer benefits are there to help you improve your life. Do not leave anything on the table. Taking the time to review your employer benefits and implementing these strategies can help set yourself up for a successful 2025!

Allstate Benefits offers a variety of supplemental insurance benefits, including life insurance with an accelerated death benefit for long-term care riders, that can help employers support their employees' wellness and financial goals. Visit our website to learn more and start your journey to a healthier, more financially secure future.

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