Open Enrollment 2026: How to Choose Dental, Vision, Life and Disability (Plus: When to Refinance a Home)
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode of NerdWallet's Smart Money Podcast explores open enrollment decisions beyond health insurance, focusing on the various supplemental insurance options available to employees. The hosts Sean Pyles and Elizabeth Ayoola discuss refinancing opportunities as mortgage rates decline (05:25) and dive deep into understanding dental, vision, life, and disability insurance options during open enrollment season. (18:45)
• **Main Theme:** Navigate open enrollment choices beyond health insurance, including dental, vision, life, and disability coverage, while understanding when refinancing a mortgage makes financial sense in the current market.Speakers
Sean Pyles
Sean Pyles is a host of NerdWallet's Smart Money Podcast and a personal finance writer. He helps guide listeners through complex financial decisions with practical advice and expert interviews.
Elizabeth Ayoola
Elizabeth Ayoola co-hosts NerdWallet's Smart Money Podcast, bringing expertise in personal finance and helping audiences make informed money decisions through accessible financial education.
April Brasher
April Brasher is a knowledge advisor with the Society for Human Resource Management (SHRM). She brings extensive experience in employee benefits and helps professionals navigate complex insurance and benefit decisions during open enrollment.
Holden Lewis
Holden Lewis is a mortgage writer at NerdWallet with over a decade of experience covering housing market trends, refinancing strategies, and mortgage advice for homeowners and potential buyers.
Key Takeaways
Refinancing Makes Sense With Strategic Rate Cuts
Mortgage rates have quietly fallen half a percentage point since July 4th, creating refinancing opportunities for some homeowners. (05:25) However, refinancing only makes financial sense if you can cut your interest rate by at least half a percentage point, preferably three-quarters of a point. The key is running the numbers through a refinance calculator and considering your break-even timeline - typically 4-7 years. If you plan to sell within 2-3 years, refinancing likely won't pay off due to closing costs.
Young Workers Should Consider Life Insurance Early
Getting life insurance when you're young is often a smart financial move, even if you don't have dependents. (26:37) Young, healthy individuals get better premiums that can be locked in for 20-30 years. The cost is minimal - about $5 per paycheck for $100,000 of coverage - but the rates increase significantly with age. This creates a foundation for future financial security when you do have dependents to protect.
Dental and Vision Insurance Are Maintenance-Focused
Dental and vision insurance operate differently from medical insurance because they're designed for preventative care rather than emergencies. (19:53) Dental typically covers cleanings, fillings, and x-rays at 100%, but major procedures like crowns are covered at only 50% if at all. Vision plans usually allow one pair of glasses or contacts per year. Understanding these limitations helps set realistic expectations and budget accordingly for uncovered expenses.
Disability Insurance Protects Your Most Valuable Asset
Disability insurance replaces 60-70% of your income if you can't work due to illness or injury. (29:32) Short-term disability covers up to six months (useful for surgeries or childbirth), while long-term can last until retirement age. The key distinction is between "own occupation" and "any occupation" coverage - own occupation pays if you can't do your specific job, while any occupation only pays if you can't work any job at all. This protection is crucial since your ability to earn income is likely your most valuable financial asset.
Take Personal Inventory Before Open Enrollment
Avoid the common mistake of rushing through open enrollment by choosing the same options year after year. (37:46) Take time to assess changes in your life - marriage, children, health concerns, or family medical history. April's sister chose critical illness insurance due to family cancer history, which proved invaluable when she was diagnosed. Plans and coverages can change, so review everything annually and ask questions if you're uncertain about any options.
Statistics & Facts
- Mortgage rates have fallen half a percentage point since July 4th, with refinancing activity up 111% compared to the same week a year ago. (05:25) This significant increase shows how even modest rate drops can create substantial market activity.
- Less than 20% of people with mortgages have rates high enough (around 6.75% or higher) to make refinancing worthwhile with current rates between 6% and 6.25%. (07:05)
- Basic employer life insurance typically provides coverage equal to one times your annual salary at no cost to the employee, with no medical exam required. (23:49)
