The Challenge: Navigating Complex Benefit Choices

A married couple, one a BigLaw associate and the other employed in a different industry, needed to make employee benefit elections for the upcoming year. With multiple employer-provided options for health insurance, life insurance, and disability coverage, they were unsure which choices would best serve their family—both financially and practically.

They had to decide:

Which health insurance plan(s) to use – Should they cover the entire family under one plan or split coverage between their two employers? If they split coverage, whose plan would be best for the kids?
How to optimize their HSA benefits – The non-BigLaw spouse’s employer offered an HSA contribution match, which could be a significant advantage.
What to do about life and disability insurance – Did it make sense to rely solely on employer-provided policies, or should they secure private coverage?

How We Helped: A Data-Driven, Practical Approach

To simplify the decision-making process, we:

Analyzed Health Insurance Costs & Coverage – We requested each employer’s benefits guide and mapped out the financial differences between the available plans. We accounted for:
- Monthly premiums
- Deductibles
- Maximum out-of-pocket costs
- Tax advantages of various health and insurance
- Employer contributions to HSA/HRA accounts

We also assumed a worst-case medical expense scenario, since the relative value of each plan can change depending on actual healthcare usage. Finally, we advised the clients to double-check that their preferred doctors and facilities were in-network before making a final decision.

Optimized HSA Contributions – Since one spouse’s employer provided a matching contribution to their HSA, we factored this into our recommendations. This allowed them to maximize tax advantages while minimizing out-of-pocket healthcare expenses.
Evaluated Life and Disability Insurance Needs – We reviewed the employer-provided insurance options and compared them to private market alternatives. Key considerations included:
- Life insurance – Employer group coverage is typically inexpensive, but coverage amounts are often limited. We helped the couple determine whether they needed additional private coverage based on their mortgage, future education expenses, and overall financial goals.
- Disability insurance – Employer-provided coverage usually replaces only 60% of gross income and may have taxable benefits. In this case, one of the clients had the option to pay for their disability coverage after-tax, which would make any future benefit they received tax-free.
  
  We showed them the difference between saving on taxes now through the cost of the insurance versus saving on tax later through the payment of the benefit. Finally, we calculated whether supplemental private disability insurance would be necessary to ensure adequate income protection.

The Outcome: A Confident and Informed Decision

With a clear analysis in hand, the couple was able to confidently elect the benefits that best suited their family’s needs. The result:

They selected the most cost-effective health insurance plan, factoring in worst-case medical costs and tax advantages.
They structured their HSA contributions to maximize employer matching.
They determined that private life and disability insurance would provide better long-term security than relying solely on employer coverage.

By working through these decisions strategically, they were able to minimize costs while ensuring comprehensive protection for their family. Most importantly, they understood what they actually had!

Get in Touch: Contact@ConcertPlanning.com

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