Suze Orman Warns It's On You To Make Sure You Have The Right Coverage For 2025 And Beyond – 'Don't Rely On Workplace Life Insurance'

Suze Orman, a trusted personal finance expert worldwide, emphasizes that individuals must be vigilant about their benefit selections during the annual open enrollment period. 

With health plan premiums expected to increase, Orman advises closely reviewing coverage options. High-deductible health plans (HDHPs), which come with lower premiums, might be worth considering for those with robust emergency funds. However, she cautions, "Never opt for an HDHP if you lack the savings to cover the deductible." 

Don't Miss:

• Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on how on what’s behind this formula.
• $100K Sitting In A CD Account, Should I Move Money Into The Stock Market?

An HDHP can be paired with a Health Savings Account (HSA), a powerful tool that offers a "triple tax break" – contributions grow tax-free, are tax-deductible and withdrawals for medical expenses are untaxed. Plus, some employers match contributions, adding an extra boost to savings.

Beyond health coverage, Medicaid expansions in 40 states have broadened access for low-income families, but there's ongoing debate about how financially sustainable this will be in the long run. 

Policy experts, like those at the Kaiser Family Foundation, highlight the importance of keeping up with changes in Medicaid eligibility and benefits as states adjust policies. These expansions, though beneficial, come with a need for beneficiaries to stay informed on any premium adjustments or updates in coverage tiers.

Trending: Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.

For those with dependents, relying solely on employer-provided life insurance is a mistake, according to Orman. Employer policies typically cover only one to two years of salary – far from adequate. "My advice," she stresses, "is to aim for a life insurance policy that's 20 to 25 times your current salary." 

This recommendation is particularly vital for families with young children or a stay-at-home parent who would otherwise face hefty costs for child care if the caregiver passes away unexpectedly.

Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.

Orman also points out the importance of emergency savings, noting that many employers now offer programs to help workers build a financial safety net. Some companies even match contributions to these savings plans, providing a solid foundation against life's inevitable surprises. 

If one's employer doesn't offer this benefit, Orman suggests asking HR about "split deposit" options, allowing a portion of each paycheck to be automatically directed into a savings account. For those who need more support, she recommends SecureSave, a tool she cofounded to give employees a straightforward way to build emergency savings.

See Also: According to Vanguard’s Advisor’s Alpha Study, working with a financial advisor can result in approximately 3% higher net returns annually, here are the benefits of partnering with a financial advisor and how to find the right one near you in minutes.

Retirement planning is another area Orman urges individuals not to overlook. She recommends saving at least 15% of one's income for retirement, combining personal and employer contributions. Increasing the contribution rate can make a significant difference over time for employees not yet at that target.

Orman's advice comes when economic uncertainty also impacts food security, with organizations like the Food and Agriculture Organization raising concerns about food affordability worldwide. Programs like the Supplemental Nutrition Assistance Program (SNAP) have become essential to many households. 

Read Next:

• I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?
• Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.