Open enrollment is an important opportunity to review your workplace benefits, but financial planning shouldn’t stop when enrollment ends. Some employers have already completed their 2026 enrollment periods, while others are still accepting selections or preparing for upcoming enrollment.
According to the Society for Human Resource Management (SHRM), many employers with January-start benefit plans conduct open enrollment in November. Regardless of your company’s schedule, reviewing your life insurance, disability protection, and retirement benefits can help you identify potential financial gaps.
1. Is Your Employer-Sponsored Life Insurance Enough?
Many employers provide basic group life insurance at little or no cost, often with the option to purchase supplemental coverage through payroll deductions. Some plans also offer coverage without individual medical underwriting up to specified limits.
However, before selecting additional coverage, consider these questions:
- How much basic and supplemental life insurance do you currently have?
- Would that amount adequately protect your family’s financial needs?
- Will your premiums increase as you get older?
- What happens to your coverage if you change jobs, lose employment, or retire?
Employer-sponsored life insurance may end when employment ends, although some plans offer portability or conversion options. The National Association of Insurance Commissioners (NAIC) recommends evaluating coverage needs, policy costs, and insurance options before making decisions.
2. Group Term vs. Individual Term Life Insurance: What’s the Difference?
One major difference between employer-sponsored group life insurance and individually owned term insurance is premium structure.
Group supplemental life insurance may have premiums that increase with age or changes to the employer’s plan. Individual level-term policies generally provide predictable premiums during a specified period, such as 10, 15, or 20 years.
Example: Comparing Life Insurance Premiums
Consider an illustrative case involving a 47-year-old male who qualified for Preferred Plus underwriting. His employer-sponsored supplemental life insurance cost approximately $3,187 annually for $2.2 million in coverage.
Individual term life insurance illustrations for the same death benefit showed:
- 10-year level term: $1,438 annually
- 15-year level term: $2,120 annually
- 20-year level term: $2,604 annually
The 20-year illustration was $583 less annually than his existing employer premium.
Does this mean individual life insurance is always cheaper? No. Group insurance can be particularly valuable for employees with health conditions, while individual premiums depend on medical underwriting, insurer, and policy terms.
These figures are supplied case illustrations, not independently verified carrier quotes or guaranteed offers.
3. Can You Change Life Insurance After Open Enrollment?
Possibly, but the answer depends on your employer’s plan rules and the benefit involved. Some plans permit certain changes outside open enrollment, while others restrict when coverage elections can be modified.
The IRS explains that qualifying cafeteria-plan elections are generally irrevocable during the plan year, subject to permitted exceptions. Those rules do not automatically apply to every employer-paid or after-tax life insurance arrangement.
Review your benefits documents or contact HR before making changes. Never cancel existing life insurance until replacement coverage is approved and in force.
4. What Other Workplace Benefits Should You Review?
A comprehensive workplace benefits review should address more than life insurance. Consider these four areas:
- Disability insurance: Would your benefits replace sufficient income if an illness or injury prevented you from working?
- Critical illness coverage: What financial support would be available following a covered serious illness?
- Long-term care planning: How could future care expenses affect your retirement savings?
- 401(k) and retirement benefits: Are you receiving your full employer match, and does your investment allocation reflect your goals?
Each benefit addresses a different financial risk. Reviewing them together can help you identify gaps and avoid unnecessary duplication.
Frequently Asked Questions
Is employer life insurance better than individual term insurance?
Neither option is automatically better. Employer coverage may offer easier enrollment, while individual coverage can provide greater portability and level premiums during a specified term.
Can I review benefits after open enrollment closes?
Yes, you can review your financial protection anytime, even when changes to employer benefits are restricted. Your plan administrator can explain the applicable enrollment and cancellation rules.