Gap Insurance Rising in Popularity as Deductibles Increase

Instead of relying on a savings account to help cover the financial burden of high deductibles, many insurance companies are offering additional policies to cover excessive out-of-pocket costs. Gap Insurance is a coverage option that can be purchased by consumers who are currently enrolled in high deductible plans.

Gap plans typically have limited benefits that regardless of an individual’s situation, the policy will pay funds up to a specific amount. With high deductible plans on the rise, individuals are looking for other options to cover themselves to avoid paying a $6,000 deductible, and more in some circumstances.