30 Second Insurance Tips©

Tip 221- Filling In The Gaps

The higher deductibles and co-insurance of most health plans expose individuals to out of pocket expenses up to $6,350 per calendar year.

Sliding into second base during a softball game, Scott broke his ankle. The visit to the ER for treatment and follow up therapy cost him close to $2,500. His health plan has a $3,000 deductible, so guess who paid those bills? For a monthly premium of $29.15, Scott could have purchased an accident policy that would reimburse up to $5,000 for each covered occurrence.

Jean was diagnosed with cancer last year. Her health plan has paid out six figures for her treatment, but the out of pocket charges – straddling two calendar years – have cost her $12,700. A Critical Illness (CI) policy paying up to $25,000 for a diagnosis of cancer, would have cost Jean (age 51) $36.96 per month. For additional premium, some CI policies cover vascular disease and other illnesses; they may also have a return of premium feature.

Offered to individuals and groups, “Gap Plans” are well worth your review.

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