Consumers generally consider choice a good thing. And usually it is. But can having too many choices actually lead consumers to make a poor decision—or even no decision at all?

Breadth of choice is a growing challenge with benefits these days. With the growth of voluntary benefits and other employee-funded coverage, consumers have more choices than ever [Read "Some seniors overwhelmed by Medicare Advantage"]. This can leave them feeling overwhelmed and confused. In some cases, employees give up, make no choice and go unprotected.

If employers and benefits providers understand some key principles of decision-making and know how to best present benefits information, employees have a better chance of making the most informed decisions and getting the coverage they need.

Setting the stage for effective decisions

Decisions about insurance and financial products are among the most difficult for consumers, according to a 2008 study by Yale University. When they're faced with decisions on complex subjects, consumers may hesitate to make any decision at all if they feel they lack the information to make a sound choice. This means consumers could miss opportunities for important financial protection.