They allow you to use pre-tax income to purchase those benefits that you think you’ll need.
They can be a very risky way to select health, dental and vision insurance, because it is attractive to many employees to minimize their coverage, choosing only a few items, and leaving them exposed to huge risks if the unexpected happens.
If you are wise, or your employer/government has mandated it, everyone will get a baseline level of benefits and you’ll use your cafeteria plan to bolt on specific programs that you and your family need or like.
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