Now that we’re into open enrollment, I want to talk about the fact that for a lot of people, deductibles are going up, meaning that your potential out-of-pocket is going up. For some people, it may make sense to choose a plan with a higher deductible, particularly if you have a very healthy family, or you’re not too concerned about a big life event, such as cancer or a heart attack, or an accident. However, there are a lot of people that are nervous about having such a high deductible, this is where supplemental or gap cover comes in.
I understand that it’s a lot of money to be out of pocket if something happens. So what can you do?
There are some things we can do to help put your mind at ease. One way is to look at utilizing gap-type coverage in the form of supplemental coverage.
Supplemental coverage companies work in different ways, and I am able to assist you with various different companies, and their various options, depending on your needs. Sometimes, they provide you with a lump sum payment for critical illness, and sometimes it’s an ongoing payment for critical illness. There are coverages that are strictly for cancer, there are coverages that are strictly for heart attacks, and there are also coverages for critical illness. When it comes to lump sum payments, you get paid directly, and you can use that sum to cover your deductible, or for other expenses, for example, if you missed work and have bills piling up.
An important thing to note is that disability is not something that is usually well covered in supplemental cover. There are one or two companies that offer disability coverage but usually will have a 90-day waiting period. I advise my clients that usually, going through an employer for disability coverage is often best. If you work for an employer that does not offer disability, look me up, and I can talk to your HR people, and see what we can do about that.
Supplemental coverages can really help fill in the gaps – and one of the main ways is to help cover a deductible and can even mimic disability cover. If, for example, you had an accident plan that gave you 1000s of dollars, that will help cover your deductible, if you had an accident. But, it will also help cover your paycheck, if you’re unable to work. With this coverage, that money is paid directly to you, and you can use it any way you choose. The companies do not tell you how to spend the money, all you have to do is provide documentation that you had been involved in an accident. The claim then gets filed and the money gets paid to you.
The supplemental cover provides great peace of mind. You may pay for it for years and not need it, but I always tell people, that when something happens, you are going to be glad you had that coverage.
How do you know if you need supplemental coverage? Usually, the discussion I have with people comes down to their deductible. If you have savings, you can certainly utilize your savings instead of getting a supplemental policy. But, you may not want to use a large portion of your savings on medical expenses, and it may make more sense for you and your monthly budget to pay for supplemental coverage. You pay a small amount per month, and then when something happens, you can draw from that money and get that money out based on how serious the incident is.
If you have questions or want to discuss options I am here to assist you. To book an appointment click here.