That’s the problem with most insurance programs. They don’t cover everything. With employee sponsored health insurance programs, there are either high deductibles and lower co-pays, or lower deductibles with higher co-pays. There are often few or no options for employer sponsored critical illness, accident or long term disability; and what if you are hospitalized? The cost of a few days in the hospital can take months out of your budget.
A few years ago a bout of pneumonia landed me in the hospital for three days. The wait in the emergency room for a bed, and then the three days on the nursing floor were all covered by my insurance, but the gaps between what the insurance covered and my out-of-pocket costs took several months to pay. Had I known about Medical Gap Insurance at the time, an insurance I could have purchased myself over and above my employer sponsored insurance; I could have saved myself a lot of stress. At the time all I had was my employer’s health insurance coverage. It paid for my prescriptions, about 80 percent of the hospital stay and percentages of the physician care, but when the bills started coming in, I realized I didn’t have what I needed. It was too late to do anything other than start writing checks. There were bills for radiology and radiologists, emergency room physicians and the emergency room, supplies, my physician, the laboratory work, and so much more.
The cost of a hospital stay averages over $2,000 a day, depending on where you go. Your employer sponsored health insurance may only cover between 70 and 80 percent of that. The rest of those costs come out of your pocket. With a voluntary benefit plan, like Gap Insurance, you may pay a little out of pocket each month, but your co-pays and deductibles are covered. You have less worry when it comes to hospital stays, and even doctor visits. The gap between the 20 or 30 percent your insurance doesn’t pay can stay in your pocket.
There are other voluntary insurance benefit programs available as well. If your employer doesn’t provide dental or vision coverage, critical illness coverage, disability, accident coverage, term-life insurance or other income protection; contact an AC Financial adviser. It only takes a few days in the hospital or an accident with short-term disability results for a voluntary benefit policy to pay for itself.
