Open Enrollment When You're Raising Kids: The Benefits an Expert Says Parents Miss

Once the baby years are behind you, benefits slide to the bottom of the to-do list. You keep last year's plan, skim the enrollment emails, and miss the perks your employer added while you weren't looking.

Here's the fast answer: once your kids are in school, re-pick your health plan for the year ahead, rethink your dependent care FSA for after-school care and summer day camp, consider accident insurance if your kids play sports, revisit your life insurance, and hunt for perks like backup childcare and a Lifestyle Spending Account (LSA) that your employer may not advertise.

To cover the raising-kids years, we sat down with Cassi Benavides, founder of Nest & Navigate, where she gives new families white-glove, one-on-one guidance as their personal benefits advisor. Cassi has spent 13 years in HR and benefits management, and even she found out about one of her family's best perks, backup daycare, from her husband's coworker. When their son's daycare closed for Thanksgiving week, it covered the gap. Prefer to watch? Here's Cassi's raising-kids breakdown, or catch the full conversation on YouTube.

Your 30-second cheat sheet for the raising-kids years

Re-check every year

• Your medical plan: if no birth or surgery is planned, the deductible usually matters most again.
• Your life insurance amount: it should change as your expenses do.
• Your dependent care FSA: keep it for after-school care and day camp, or drop it.

Consider adding

• Accident insurance for sports injuries, often with a yearly wellness payout.
• A 529 college savings plan.

Ask HR about

• Backup childcare, volunteer days and an LSA.

TL;DR: The raising-kids years add choices, so give each one a yearly check instead of keeping last year's picks.

Should you keep the same health plan every year?

No. Cassi calls it following the wave: your benefits should change as your family does.

"Don't just keep the same one forever because it's what you did last year."

If you're not planning a birth or surgery, the deductible usually matters most again, since that's what you'll pay for everyday care before insurance kicks in. Kids also mean more doctor visits, so keep funding your health FSA or HSA. Cassi's warning to parents: you're going to use your insurance a lot.

TL;DR: Without a big planned expense, choose by deductible and premium, and keep your health account funded.

Is the dependent care FSA still worth it once kids start school?

It depends on your schedule. Under IRS rules, before- and after-school care and day camp can count for a dependent care FSA, but overnight camp and school tuition don't. Your child also has to be under 13 when the care happens.

Some families keep the account for after-school programs and summer day camp, and others drop it once kids are in school. Cassi notes that dependent care FSAs have different timing rules from health FSAs, so compare your actual care costs to what you'd elect. Our dependent care FSA guide runs the numbers, including the $7,500 household limit for 2027.

TL;DR: After-school care and day camp can qualify for a dependent care FSA, but overnight camp and tuition don't.

Is accident insurance worth it for families with kids?

Cassi recommends it during this stage, especially if your kids play sports. Accident plans pay you cash for injuries like sprains and broken arms, and you can use the money for anything, from medical bills to groceries.

Cassi says many plans also include a wellness benefit, typically $50 to $100, just for an annual checkup or school physical you were getting anyway. Check your plan's payout list and wellness benefit before you enroll.

TL;DR: Accident insurance pays cash for kids' injuries, and its wellness benefit can offset part of the premium.

What perks might your employer have that you don't know about?

This is where Cassi's backup daycare story comes in. Backup care programs cover gaps when your regular care falls through, like school holidays and snow days, and some include care for adult relatives. Cassi's family even used their plan's backup pet care.

Other perks worth asking about:

• Volunteer days: some employers give paid time off to volunteer, which Cassi says parents can use to chaperone a field trip.
• A Lifestyle Spending Account (LSA): an employer-funded account for things like gym memberships and wellness. If you have one, use every dollar. Our LSA guide explains how.

Upload your plan documents to Caeli and it shows the employer-specific perks you have, from gym reimbursements to wellness stipends. Our full list of perks hiding in your benefits has more.

TL;DR: Ask HR directly about backup care, volunteer days and an LSA, because they're rarely advertised.

How often should you review your life insurance?

Every year, Cassi says. The amount your family needs isn't a fixed number. It changes with your mortgage, your childcare costs and how many kids you have.

"You just want to make sure that your family's financial expenses could be covered if something happened to you."

While you're there, check your beneficiaries. Don't name a child under 18 directly. Our guide to life insurance beneficiaries for minors explains why.

TL;DR: Re-size your life insurance every open enrollment and keep beneficiaries current.

When should you start a college savings plan?

Cassi says this stage is the time to decide. A 529 plan is a tax-advantaged education account, and for qualified education expenses, its earnings aren't subject to federal income tax. Some employers offer payroll deduction into a 529, so check your benefits portal.

TL;DR: Decide on a 529 while your kids are young so tax-free growth has time to work.

Caeli Pro-Tip: Have an LSA and an HSA? Some purchases can draw on both. Caeli combines programs when one wallet is low, so your LSA can cover the gym membership while your HSA covers eligible recovery gear. Upload your plan documents and Caeli shows you which perks you have. Install Caeli and stop leaving family benefits unused.

Frequently asked questions

Can I use my dependent care FSA for summer camp in 2027?

Day camp can count as care under IRS rules. Overnight camp doesn't.

Does a dependent care FSA cover after-school programs?

Yes, before- and after-school care can qualify, as long as your child is under 13 and the care lets you work.

Is accident insurance worth it if my kids play sports?

It can be. Accident plans pay cash for covered injuries, and many add a wellness benefit for annual checkups.

What is backup child care, and how do I find out if I have it?

It's employer-provided care for when your usual care falls through, like school holidays. Ask HR or check your benefits portal.

How much life insurance do I need with school-age kids?

Enough to cover your family's living costs until your kids are grown. Recheck the amount every year as expenses change.

What happens to my LSA money if I don't use it?

Your employer sets the rules for LSAs, including whether unused money rolls over. Check your plan's deadline so you don't leave dollars behind.

The bottom line

The raising-kids years are busy, and benefits slide down the list. Give them one focused review each fall: re-pick your plan, right-size your dependent care FSA and life insurance, and ask HR about the perks nobody told you about. Want a second set of eyes? Book a free consultation with Cassi, or read our full guide to choosing a health plan for your life stage.

This article is for education only and isn't tax, legal or financial advice. Plan rules vary by employer and state.