Healthcare professionals often dedicate their lives to caring for others, frequently putting their personal financial and well-being needs on the backburner. Yet, planning for your own financial security is just as essential. Advocate Health, which emerged from the partnership between Advocate Health Care and Aurora Health Care, offers a comprehensive array of optional benefits, including life insurance, Accidental Death & Dismemberment (AD&D) insurance, long-term care insurance, and 401(k) retirement savings plans. These benefits are designed to help you build a solid financial future while also protecting you and your family from unforeseen life events.

We will explore into why it’s critical for healthcare professionals to take full advantage of these benefits and discuss how these options can secure your financial health while offering peace of mind.

1. The Importance of Retirement Planning: Advocate Health’s 401(k) Plan

Company Contributions: A No-Brainer for Your Future

Advocate Health automatically contributes 3% of eligible pay to your 401(k) account, regardless of whether you are actively contributing to the plan. This means that simply by being employed and meeting the eligibility criteria (working 1,000 hours or more during the plan year and being employed on the last day of the calendar year), you can benefit from free money toward your retirement. For healthcare professionals, this offers a straightforward, stress-free way to start securing your financial future.

However, if you were hired after January 1, 2021, you will need to complete a one-year waiting period and meet the 1,000-hour requirement before you can start receiving these contributions. While the waiting period may seem lengthy, it's a great opportunity to plan ahead and fully grasp the benefits awaiting you.

Employer Match: Enhancing Your Retirement Savings

Advocate Health matches your contributions dollar for dollar up to 3% of your eligible pay. If you contribute 3% or more, the organization will match it fully, effectively doubling the amount you're setting aside for your future. And even though the IRS limits your total contributions, you have the option to contribute up to 75% of your eligible pay, boosting your retirement savings.

For healthcare professionals, taking advantage of the employer match is essential because it dramatically accelerates the growth of your retirement funds. By contributing regularly, you're allowing Advocate Health to invest in your future alongside you, creating a stronger foundation for retirement.

Traditional and Roth 401(k): Tailor Your Contributions

Advocate Health offers both Traditional and Roth 401(k) plans, providing you with flexibility depending on when you prefer to pay taxes. If you choose the Traditional 401(k), your contributions are pre-tax, meaning you’ll pay taxes when you take a distribution at retirement. On the other hand, the Roth 401(k) allows you to contribute after-tax dollars, making your withdrawals tax-free during retirement.

This flexibility lets healthcare professionals tailor their retirement savings strategy to fit their financial situation, whether they prefer tax savings now or in the future.

Automatic Contributions and Increases: A Simple Way to Save

Advocate Health makes it easy to build your retirement savings with automatic enrollment in the 401(k) plan at 2%, and automatic contribution increases of 1% each year up to a maximum of 10%. This feature is particularly beneficial for busy healthcare professionals, allowing you to effortlessly increase your retirement savings without having to remember to adjust your contributions manually. You can also increase or decrease your contributions at any time, giving you the flexibility to adjust your savings strategy based on your financial goals.

Vesting and Commitment: Securing Your Employer Contributions

One of the key features of Advocate Health’s 401(k) plan is the vesting process. After three years of service, you become 100% vested in both the employer match and the nonelective annual company contribution. This means that if you stay with Advocate Health for at least three years, you’ll receive the full value of what Advocate Health has contributed to your retirement.

For healthcare professionals who are considering long-term employment with Advocate Health, the vesting process is another strong incentive to stay committed. Each year of service solidifies your financial security for retirement, providing you with a strong foundation for the future.

2. The Necessity of Life Insurance

Basic Life Insurance: Protection Without the Hassle

Advocate Health automatically provides basic life insurance coverage to full-time, part-time A, and part-time B employees. The coverage is equal to 1x your base salary, with a minimum benefit of $30,000 and a maximum benefit of $1.5 million. Best of all, Advocate Health pays 100% of the premium, which means you have this important protection without the need for out-of-pocket costs.

If you're a healthcare professional with financial responsibilities like a mortgage, student loans, or dependents, this coverage can help ensure that your family won't be left with a financial burden in your absence.

Optional Life Insurance: Customizable Coverage

If you need more extensive coverage, Advocate Health offers optional life insurance that allows you to customize your plan. You can choose from 1x to 7x your base salary, with a maximum benefit of $1.5 million. This additional coverage can provide peace of mind for healthcare professionals who have significant financial obligations or simply want to provide their loved ones with more substantial protection.

For your spouse or partner, coverage is available from $20,000 to $500,000 in increments of $10,000. For dependent children, you can choose between $10,000 and $20,000 of coverage. The cost of this optional insurance is discounted, making it an affordable way to protect your entire family.

3. Accidental Death & Dismemberment (AD&D) Insurance: Extra Peace of Mind

Advocate Health offers AD&D coverage ranging from $10,000 to $250,000, available in $10,000 increments. You can also cover your spouse and children, with spouses receiving 60% of your coverage amount and children receiving 20%. In cases where both are covered, the distribution is 50% for spouses and 15% for children.

This added protection ensures that if you experience a debilitating accident or a tragic loss, your family’s financial well-being is preserved.

4. Long-Term Care Insurance: Protecting Your Future

Advocate Health offers a post-tax benefit that combines long-term care and life insurance, providing a universal life insurance policy with built-in long-term care protection. This is particularly valuable for healthcare professionals, as it ensures you’ll have financial resources available if you need extended care due to illness, injury, or aging.

This hybrid option not only provides your loved ones with a life insurance payout if something happens to you but also gives you access to funds should you require long-term care. For healthcare professionals, who see the need for long-term care firsthand, this benefit offers peace of mind knowing you're prepared for whatever the future holds.

Conclusion

As a healthcare professional, you spend your career caring for others, but it’s equally important to care for your own financial future. Advocate Health’s wide range of benefits, including life insurance, AD&D insurance, long-term care insurance, and retirement plans, are designed to provide you with the tools you need to build and protect your financial security.

By taking full advantage of these benefits, you’re not only securing your own future but also providing your loved ones with financial protection. Whether it’s planning for retirement or preparing for unforeseen life events, Advocate Health’s benefits offer healthcare professionals a comprehensive package to meet their needs. Take the time to understand these options and make the most of what’s available to you—your future self will thank you. If you need help in understanding your these employee benefits, we here at Outside The Box Financial Planning are here to help. 

Partnering with Outside The Box Financial Planning (OTBFP) offers numerous benefits for individuals seeking college planning, retirement planning, small business support, wealth management, and beyond.  As a fee-only fiduciary with a comprehensive approach, unbiased advice,  and transparent fee structure, OTBFP acts as a trusted advisor who prioritizes your best interests. Click here to schedule a complimentary “Fit” meeting to determine if we would make a good mutual fit.

Remember, financial decisions have long-lasting implications, and working with a professional like the financial professionals of Outside The Box Financial Planning can provide the expertise and guidance necessary to make informed choices that align with your financial aspirations.