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.
Insurance premiums are relatively low, making them an affordable option in comparison to paying high out-of-pocket costs. For those suffering from costly chronic diseases, purchasing an additional insurance plan to provide extra financial coverage seems like a no-brainer.
Unlike traditional insurance plans, this type of limited coverage is not regulated by the government. This allows insurers to be selective, ask specific health questions and ultimately, deny coverage if they see the individual as too much of a risk.
For additional information about the growing trend of gap insurance, click here.