Life Events Can Impact Benefit Needs

During your lifetime you may experience marriage, birth or adoption of a child, job loss, or death of a family member. When considering your benefits, these changes are known as qualifying life events. Qualifying life events may trigger eligibility for a special enrollment period allowing you to make changes to certain benefits outside of the yearly open enrollment period.

When you experience a qualifying life event, most employers and insurers allow you to enroll or change your coverage immediately. If you do not have a qualifying life event, you will likely have to wait until the open enrollment period to make changes to your benefits. Contact your employer’s human resources department to learn more about your employee benefits.

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Understanding Your Employee Benefits

Tip: Whether you are an employee of a company or self-employed, evaluating your benefits annually could help you save money now and in the future.

  1. Qualifying Life Event

    As provided by healthcare.gov, there are four basic types of qualifying life events (the following are examples, not a full list).

    • Loss of health coverage
      • Losing existing health coverage, including job-based, individual, and student plans
      • Losing eligibility for Medicare, Medicaid, or CHIP
      • Turning 26 and losing coverage through a parent’s plan
    • Changes in household
      • Getting married or divorced
      • Having a baby or adopting a child
      • Death in the family
    • Changes in residence
      • Moving to a different ZIP code or county
      • A student moving to or from the place they attend school
      • A seasonal worker moving to or from the place they both live and work
      • Moving to or from a shelter or other transitional housing
    • Other qualifying events
      • Changes in your income that affect the coverage you qualify for
      • Gaining membership in a federally recognized tribe or status as an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder
      • Becoming a U.S. citizen
      • Leaving incarceration (jail or prison)
      • AmeriCorps members starting or ending their service

    Job loss, reduction in hours, or status change can all result in a loss of retirement and health benefits. However, federal law may help protect employees’ and their families’ benefits when employment changes. Coverage options will vary depending on a variety of factors, so it’s a good idea to compare options before choosing.

    The U. S. Department of Labor (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) provides additional information about how to protect your retirement and health benefits after job loss. Additionally, you can learn how life events impact health benefits, such as ERISA (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , COBRA (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and HIPPA (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

  2. Birth & Adoption Resources and Benefit Information

    Having a child, either by birth or adoption, can be one of the most exciting times of your life. At the same time, bringing a baby into your life can be stressful, including how it may affect your finances. The following information and resources can help you plan for your new addition to your family.

    A Few Things to Consider and Resources to Get You Started

    How much maternity/paternity leave can you take, and how much of it will be paid?

    Talk with your Human Resources representative about your leave options and pay estimates. Also, remember that you may be entitled to protections under the Family and Medical Leave Act (FMLA). Learn more about FMLA (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

    Have you arranged for health insurance for your new baby?

    Learn about health care for your baby (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

    Learn about Health Plans & Benefits: Newborns' and Mothers' Protections (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

    Do you have a savings account for your child?

    Learn about opening a savings account for you or your child.

    What is the best way to save for your child's education? Do you know the benefits of a 529 Plan or Coverdell Education Savings Account?

    Learn about saving for college.

    Learn about 529 Plans (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

    Learn about Coverdell Education Savings Accounts (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

    How can you take advantage of the tax breaks available to parents?

    Learn about tax information for parents (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

    Should you buy life insurance? And if so, how much?

    If someone is dependent on your income for their support, you should consider life insurance. Use this calculator (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to determine how much life insurance you may need.

    Should you create a will?

    Learn about family legal planning.

    Does your employer offer a Dependent Care Flex Savings Account?

    Learn about Dependent Care Benefits.

    Social Security Numbers for Children

    Getting your child his or her first Social Security number (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should be near the top of the list of things you need to do as a new parent. Your child's Social Security number is just the beginning of the valuable protection and benefits he or she may be eligible for in the future.

    To get the most of Social Security's family protection features, it's important that you as a parent are aware of who can receive benefits on your Social Security record, how to build Social Security credits over your working life, and how to obtain and use Social Security information in planning family financial security.

    Applying for a Social Security card and number for your newborn is voluntary, but your child needs a Social Security number if you plan to:

    • Claim your child as a dependent on your income tax return;
    • Open a credit union account;
    • Buy savings bonds;
    • Obtain medical coverage; or
    • Apply for some kind of government services for your child.

    Tip: You can apply for a Social Security number when the baby is born or wait until later. It's easy to apply at birth. When you give the information for your baby's birth certificate, you'll be asked if you want to apply for a Social Security number for your baby. If you say "yes," you'll need to provide both parents' Social Security numbers. They’ll assign your baby a number and mail the Social Security card directly to you. If you want to wait to apply for your baby's number, read Social Security Numbers for Children (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

  3. Dependent Care Benefits

    Child and dependent care is a critical issue and often a large expense for many families. Millions of Americans rely on childcare to be able to work, while many others are responsible for older parents or disabled family members.

    What are Dependent Care Benefits?

    Dependent Care Benefits, often called a Dependent Care Flexible Spending Account (FSA), allows you to have money set aside from your salary, pre-tax, each pay period to get reimbursed for eligible expenses related to the care of your dependents. If you are having financial trouble caring for dependents, such as an elderly disabled parent or newborn child, you may be able to receive assistance from your employer.

    Typically, an employer will provide you with assistance in the form of Dependent Care Benefits or Assistance. The benefits vary by employer and are presented as part of your overall benefits and compensation package.

    Examples of Dependent Care Benefits include, providing a child-care facility on campus; and providing time off to care for a newborn, newly adopted children, or dependent elderly persons. Check with your employer for more information about what Dependent Care Benefits are available to you.

    Which one should I choose?

    The answer to this question depends entirely on your family's adjusted gross income, your tax bracket, and how many dependents you have. Take a look at which benefit will save you the most money, then check with your tax advisor to see what works best for your particular situation.

    Three Reasons to Take Advantage of Dependent Care Benefits

    1. Save money! By using pre-tax dollars to pay for dependent care expenses, you get a discount on these expenses equal to your tax savings. Your discount can easily be hundreds or even thousands of dollars.
    2. Have money available when you need it. When you take advantage of Dependent Care Benefits or contribute to a Dependent Care FSA, you know you'll have the money to cover these expenses when you need it.
    3. Because the money you set aside in a dependent care account is pre-tax, you reduce the amount of your income subject to taxes.

    Important Tax Information from the Internal Revenue Service (IRS)

    If you paid someone to care for your child, spouse, or dependent last year, you may be able to claim the Child and Dependent Care Credit on your federal income tax return. For more information on the Child and Dependent Care Credit, see Publication 503, Child and Dependent Care Expenses. You may download these free publications from irs.gov (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or order them by calling 800.TAX.FORM (800.829.3676).

  4. Open Enrollment

    Open enrollment is typically an annual period during which you can enroll or change benefit coverage without a qualifying life event. Choosing the right benefits can help you and your family achieve and maintain financial security.

    Open enrollment deserves your attention. It’s an opportunity to review your options and make informed decisions that impact your physical and fiscal well-being. Change is constant and benefit selection is not a one-time event. It’s important to set aside time to review your benefit options carefully so you can make the best elections for yourself and your loved ones.

    For more details on health benefits, retirement planning, and ways to maximize your finances, check out our explainer and use this checklist to help you along the way.

    Explainer Checklist

    Here are some important benefits to review during each open enrollment period:

    If you have questions about your benefits, how to enroll, or how to change your selections, contact your employer’s human resources department for additional information.

    Retirement Planning

    Open enrollment is a good time to review your investment elections, but you don’t have to wait until open enrollment to increase your contribution or change your investment choices. Using a retirement calculator (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) can help you determine if you are saving enough to reach your retirement goals. Two great questions to ask every year are:

    • Does your employer match your retirement contributions? If so, don’t miss out on an incredible opportunity to build your retirement savings.
    • Did you recently receive a raise? It may be the perfect time to increase contributions to your retirement account which could also provide tax benefits (consult a tax advisor for advice).

    For a more complete picture of your retirement funds, visit SocialSecurity.gov (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to set-up a free MySocialSecurity (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) account to view your estimated benefit from social security at full retirement age.

    Did You Know? If you have a High Deductible Health Plan (HDHP) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , you can use a Health Savings Account (HSA) to pay for certain out-of-pocket medical expenses on a pre-tax basis.

    Credit Unions offer many related financial products and services, including HSAs, that you may decide to consider while reviewing your employer benefits. Also, many credit unions offer free financial counseling services to help you layout a financial plan.

    Contact your credit union for more information or find a credit union located near you.

    Federal Employees

    If you are a current or former federal employee, the Office of Personnel Management (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) has answers to frequently asked questions relating to common Life Cycle Events (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that may occur during or after your Federal career.

  5. Designating a Beneficiary

    Have you named your beneficiaries or are your beneficiary designations up-to-date?

    It is important to officially designate, and update as needed, the person(s) you want to receive benefits from insurance and retirement accounts such as a 401(k) and life insurance plans in the event of your death.

    Without a named beneficiary your accounts are paid in the order set by state law. If you have questions about designating a beneficiary or creating a trust for a beneficiary, you may wish to consult with an attorney or estate planning professional.

    TIP: It is important to keep a copy of beneficiary paperwork with your will and other important papers. Also, regularly review your records with your human resources department to ensure they are accurate.

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