Evaluating Your Benefits Package
Benefits are not only for the twilight of your career. While we peculiarly think of benefits as basic insurance coverage, a good benefits plan can comprehend many additional perks that offer true tangible gains in relation to the competition. Following are some of the basic components of benefit plans and what to look for:General Coverage
Determine if there are any per month or per-pay-period costs for the overall benefits plan (which will realize an immediate and tangible dent in your take-home pay, although it is commonly a pre-tax deduction), who is covered (does it only cover you or does it also cover other family members and future family members), when each component of the benefit really begins (some will begin the first day of work, some after thirty days, and some after one year of employment), and whether any of the benefits are taxable (life insurance is an example of a benefit that you may end up paying taxes on at the end of the year). If the benefits are provided cafeteria-style (where you can pick and choose which you will enroll in), find out if you can add benefits at a later date and what restrictions would be involved.Medical Insurance
Consider the type of plan (Preferred Provider Option, Health Maintenance Organization, Blue Cross/Blue Shield, etc.), what expenses are covered (HMOs will often pay for preventive care expenses that others will not, etc.), deductibles (annual deductibles, per-office-visit deductibles, etc.), co-pays (percentage the insurance pays versus the percentage you will pay), exclusions for pre-existing conditions, and whether or not the plan has open or closed enrollment (including medical exams or other evaluations which may be necessary for enrollment in the plan).Dental Insurance
Consider whether preventive care (exams, cleaning, X-rays, etc.), surgical care (root canals, etc.), and orthodontic care (braces, etc.) are covered and to what extent (deductibles, co-pay, annual limits, and lifetime maximums).Vision/Eye Care Insurance
A fantastic benefit if you need it. A fantastic benefit even if you don't actually need it (most will need it eventually). Examine what expenses are covered, what the deductibles are, and what the annual limits and lifetime maximums are. Several companies now provide an "up to" amount of annual coverage which can include exams, eyeglasses, contact lenses, and even disposable lenses.Life Insurance
Albeit you are probably not planning your funeral arrangements yet, this benefit will become progressively important as you add loved ones to your life. Meanwhile, it may cover the basic expenses in the event of unexpected tragedy. Some companies will also permit you to purchase additional blocks of term insurance, although often at or above the going market rate. It is usually better to purchase additional insurance separately, but evaluate the costs - especially if the rates offered will remain stable for the duration of your employment.Accidental Death Insurance
As if it somehow matters how you die, some companies pay more if your death is of a more spectacular nature. If they offer it for free, take it. Don’t buy additional amounts.Business Travel Insurance
Another change on the accident insurance theme. Companies sometimes offer their employees with insurance to cover accidental death or dismemberment while traveling on business. Again, if they offer it for free, take it.Disability Insurance
One of those benefits you will never ever care about until you need it. Disability insurance is usually divided into short-term disability (which can sometimes comprehend an allocation for sick pay and generally comprehends initial disability coverage from 90 days to a year) and long-term disability (which commonly kicks in after 90 days to a year). Note the percentage amount of salary paid, how that percentage may change over time, and what that percentage is based on. Also note how any variable pay components may be covered.Vacation
Consider how many days are permitted in your first year, when they start accumulating, when they may be used (can days be taken before they are earned?), how many days are permitted in future years, and the maximum number of days. The standard vacation policy may begin with one to two weeks per year (prorated from the hire date), then additional days or weeks based on years of service. Some companies, however, do not provide any vacation during the first year. Note also whether vacation days accumulate according to the calendar year or work year (based on your date of hire).Holidays
There are six standard holidays that nearly every U.S. company covers (New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day). Besides, several cover the day after Thanksgiving, an additional day at Christmas, and some cover additional days such as Presidents' Day and Martin Luther King Day. And then there is the U.S. government, which is a member of the Holiday-of-the-Month Club. Many companies will provide six or more "set" holidays plus one or more "floating" holidays that can be utilized at the employee's discretion. In this case, these floating holidays generally end up being treated much the same as vacation days. If the company provides floaters and you are starting midyear, note how many will be offered to you during the first year.Back: Cover Letters
