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Strategies for brokers to address common concerns and misconceptions around gap cover

14 January 2025 Brian Harris, Director of Operations at Turnberry Management Risk Solutions
Brian Harris

Brian Harris

Brokers frequently encounter clients who are sceptical or unsure about the necessity of gap cover. Misconceptions, cost concerns, and a lack of understanding can create barriers to securing this crucial component of comprehensive healthcare and financial protection.

By addressing these objections effectively and demonstrating the value of gap cover, you can help your clients make informed decisions and develop a comprehensive plan of cover to safeguard their financial and medical well-being.

1. Addressing misconceptions: clarity is key
“I have comprehensive medical aid, so I don’t need gap cover.”

Strategy: Educate your clients on the reality of medical expense shortfalls. Even the most comprehensive medical aid plans often fall short of covering all expenses, particularly when specialists charge up to 1500% of the scheme rate. Share real-life examples, such as the cases of Turnberry Gap Cover clients who have experienced lifetime claims of R529 598,61, R450 224,52, R437 464,33, R398 585,02, and R395 882,08, respectively, resulting from medical expense shortfalls over the years. These significant figures illustrate the potential financial impact and underscore the importance of gap cover as a safety net.

2. Tackling cost concerns: emphasising value over price
“Gap cover is an unnecessary expense; I can’t afford it.”

Strategy: Shift the conversation from cost to value. Explain that, while gap cover does involve an additional premium, it can prevent far greater financial losses in the long run. Highlight statistics like the lifetime claims from Turnberry, where clients have faced shortfalls totalling hundreds of thousands of rands over their lifetimes. Emphasise that gap cover is a cost-effective way to protect against such significant financial risks, potentially saving clients from having to dip into savings, take on debt, or delay important life goals. It is also important to emphasise to clients that often, one premium will cover all immediate family members in the policy.

3. Dispelling myths about coverage: setting the right expectations
“Gap cover will pay for all my medical expenses, including day-to-day costs.”

Strategy: Clarify the specific role of gap cover in a client’s healthcare protection plan. Explain that gap cover is designed to address shortfalls related to hospitalisations and significant medical events, not everyday expenses like GP visits or optometry. By setting realistic expectations, you help clients understand how gap cover complements, rather than duplicates, their existing medical aid, making it an essential part of their overall financial strategy.

4. Demonstrating strategic importance: aligning with long-term goals
“I don’t see how gap cover fits into my long-term financial plan.”

Strategy: Position gap cover as a strategic component of comprehensive financial planning. Explain that unexpected medical expenses can derail even the most carefully crafted financial plans, forcing clients to make difficult short-term decisions that impact their long-term goals. By integrating gap cover, clients can protect their retirement savings and other financial objectives from being compromised by unforeseen medical costs. This approach helps clients see gap cover as an investment in their financial security rather than just an added expense.

5. Leveraging broker expertise: the value of professional guidance
“I don’t want to pay extra for a broker’s advice.”

Strategy: Reinforce the value of your expertise by explaining that your services come at no direct cost to the client, as brokers earn commissions from insurers. Emphasise the benefit of having a knowledgeable professional who can navigate the complexities of medical aid and gap cover options. Your guidance ensures that clients choose the most appropriate coverage for their needs, helping them avoid costly mistakes and ensuring they are fully protected.

6. Effective communication techniques: building trust and understanding
Strategy: Use clear, straightforward language when discussing gap cover, avoiding industry jargon that might confuse clients. Focus on building trust by listening to their concerns and addressing them directly. Provide real-world examples and statistics to make the risks and benefits tangible. Regularly review your clients’ coverage needs, ensuring that their gap cover remains aligned with their medical aid and financial goals as circumstances change.

Empower informed decisions
By effectively addressing objections and concerns, brokers can help clients understand the critical role gap cover plays in protecting against unforeseen medical expenses. Through education, clear communication, and a focus on long-term value, you empower your clients to make informed decisions that support their financial and healthcare security. Gap cover is not just an add-on; it’s a strategic safeguard that ensures your clients are prepared for whatever the future may hold.

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