Is Gap Health Insurance a Smart Choice?

Posted on January 13, 2018

Have you heard of gap health insurance? Do you know what it is? If not, read on to discover exactly how it works and if it's a smart choice for your future.

 Health insurance can be a very confusing thing, especially when big changes come into your life.

Things like moving out of your parent's house, getting married, or having kids. It only gets more confusing when you hear about things like gap health insurance.

You might have questions about what gap insurance is.

How does it work, and is it a smart choice for me?

It's perfectly understandable to be unsure or not know what you need when it comes to health insurance. Especially when you have people trying to sell you the most expensive plans they have.

Read on to learn more about gap insurance, and whether or not it is a smart choice for you!

What Is Gap Health Insurance?

Almost all insurance that you buy won't be able to cover every single thing you might need to use it for. This could leave you paying for certain expenses out of your pocket.

If you have to receive those services all the time, those out-of-pocket expenses will start to add up.

Gap health insurance, basically, is exactly what it sounds like. It's supplemental insurance that covers some or all of the expenses that your primary health insurance doesn't cover.

Who Needs Gap Insurance?

Most often, people who enroll in medical gap insurance are people who receive group health coverage through an employer. The most common use of gap health insurance is for deductibles.

When you visit a doctor, often times you will have to pay a deductible, or if you may have to if you receive a surgery that your insurance only covers 80% of, so on and so forth.

This means that gap insurance is something that could benefit almost anyone who has insurance. Excluding those who receive complete health care coverage either through welfare programs, or people who are willing to pay the price for full coverage.

Deciding If It's Worth It to Invest

When you're trying to figure out whether or not it would be worth it to you to invest in gap health insurance, you may want to consider that more than 1:5 adults ages 19-64 who are insured for the full year will spend 5% or more of their income on out-of-pocket expenses.

With that knowledge in mind, it's important to take into consideration these few factors:

How Much Does My Insurance Cover?

If you have insurance that pays for 97% of all your expenses, and you are paying less than a couple hundred a year on out-of-pocket expenses, it may not be very beneficial to you to pay for gap insurance.

On the flip side, if you are spending a whole lot more a year on out-of-pocket medical costs, then gap health insurance is something that you would benefit from.

For instance, if you foresee yourself paying several hundred, even several thousand dollars in medical expenses like many American's do, and the cost of gap health insurance is low, then you should probably invest in it.

How Much Will Gap Insurance Cost Me?

Just like any other health insurance, the price of it will vary depending on a lot of different things. Your age, pre-existing health conditions, income, dependents, and so on.

It's a good idea to search some different sites and get some quotes in order to determine what you may be looking at for a monthly cost.

Some of the lowest costs are around $30 a month to start. It could go up from there depending on you and your unique circumstances, and how much you want your coverage to work for you.

Now with a number like that in mind, consider again how much you think you will spend in a year out of your own pocket on medical expenses.

If you don't have a good idea, take a look at the previous year and calculate how much you spent. If you think you will spend more than $1000 a year on out of pocket expenses, you should probably get the coverage.

What is Your Level of Risk?

This is a big one, your level of risk is huge. For many people, they never really have to go to the doctor during the year. For others, they are in and out of the doctor or hospital all the time. You may want to invest in medical gap insurance if you:

  • Have a chronic medical condition- Keep in mind if you have a chronic condition or disease that causes you to have to go to the doctor frequently. If your insurance doesn't cover all of your required expenses, you may want to buy gap insurance.
  • Work at a high-risk job- If you are a firefighter, police officer, construction worker, or have any other profession that puts you at constant risk of illness or injury, you may benefit from this type of insurance.
  • Participate in high-risk sports or activities- Consider what kind of activities you enjoy. If you participate in high-risk activities, take gap insurance into consideration. If you play sports like soccer, basketball, or football, then you are at a higher risk of injury. To avoid paying thousands in out-of-pocket medical bills, you should invest in bridge insurance.

Understanding where you stand, and how likely it is that you will spend significant time seeking medical attention is something that will help you in determining whether gap health insurance is the right choice for you.

So, Where Do I Sign Up?

Once you've decided whether or not gap insurance is right for you, it's time to pick the best coverage. Make sure that you do your research. Do not settle for anything less than exactly what you want and need.

To wrap things up, remember these last few things. Gap health insurance is for a lot of people, but it's not for everyone. Don't get it if it isn't going to benefit you.

Every situation is different. Make sure that you are getting what you need, and that you aren't missing out on anything.

And finally, make sure that you find the best provider for you by getting quotes and doing comparisons.

So, what are you waiting for? Go find the right coverage for you, and make sure that you are saving money, not losing. Best of luck!

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