The Affiliated Workers Association is notifying members that it’s GAP Basic plan is being canceled effective June 14.
The GAP Basic plan was a really nifty little plan that we sold to a number of our clients for a couple of months in 2013 before it was abruptly removed from the market. At that time we were told that existing policies would be honored, and to this point they have been. Now, unfortunately (and aggravatingly), that’s changing.
The plan was a bundle of supplemental policies that included accident insurance, critical illness insurance, and a couple of less significant benefits like accidental death and dismemberment (AD&D) coverage. They were marketed and sold through a company called Homeland Healthcare.
The letters being sent to consumers suggest you call them to switch to other plans available in your state. We strongly advise against doing so.
A Better Alternative
Our suggestion is that you go ahead and cancel the GAP Basic plan and replace it with a similar plan from a more established, reputable company.
The “Premier Plan” is underwritten by IHC and includes a comparable set of benefits. In fact, it’s arguably a better package. It’s features include:
- Accident insurance – pays a lump sum up to a certain amount (options include $2500, $5000, $7500, $10k) if a covered person is injured in any kind of accident.
- Critical illness insurance – pays a lump sum (the same value as the accident coverage) if a covered person is diagnosed with a critical illness like cancer or has a heart attack or stroke, etc.
- A small amount of term life insurance on the primary policyholder.
- A small amount of accidental disability insurance
- Accidental death and dismemberment insurance
Here’s the breakdown on the four options available along with their price:
|Monthly Cost||Premier One||Premier Two||Premier Three||Premier Four|
|Benefits||Premier One||Premier Two||Premier Three||Premier Four|
|Critical Illness Insurance||$2,500||$5,000||$7,500||$10,000|
|Accident Medical Expense Insurance||$2,500 –
|Term Life Insurance||$2,500||$5,000||$7,500||$10,000|
and Dismemberment Insurance
|Accidental Disability Income Insurance||$1,000 per month||$1,000 per month||$1,000 per month||$1,000 per month|
I’m personally enrolling my family in “Premier Two” and suggest you consider doing the same – even if you didn’t have the GAP Basic plan!
If you have any questions or want to learn more, contact AC Forrest.