Moonstone Monitor – 24th October 2024
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 to 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 scheme plans often fall short of covering all expenses, particularly when specialists charge up to 1 500% 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, although gap cover does involve an additional premium, it can prevent far greater financial losses in the long run. Highlight statistics such as 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 one premium will often 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 such as GP visits or optometry. By setting realistic expectations, you help clients to understand how gap cover complements, rather than duplicates, their medical scheme cover, 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 to 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, because brokers earn commissions from insurers. Emphasise the benefit of having a knowledgeable professional who can navigate the complexities of medical scheme and gap cover options. Your guidance ensures that clients choose the most appropriate coverage for their needs, helping them to 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 their gap cover remains aligned with their medical scheme cover and financial goals as circumstances change.
Empower informed decisions
By effectively addressing objections and concerns, brokers can help clients to 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.
Brian Harris is the general manager of operations at Turnberry Management Risk Solutions.
https://getcovered.turnberry.co.za/app/1
What is Gap Cover?
https://getcovered.turnberry.co.za/app/1
Client Testimonials
I submitted the claim via DSA Brokers who I have dealt with for the past 25 years. Turnberry were a pleasure to deal with. The claim form was simple to complete and payment was prompt. In SA today where poor service seems to be the norm it was like a breath of fresh air in dealing with Turnberry who obviously understand the meaning of service excellence. I would have no hesitation in recommending Turnberry to family/friends/colleagues
Excellent. So speedy it gave me a shock. All done through S A Financial Planners online. What would you say to anyone considering taking our Gap Cover? You are the only company to deal with. Would you recommend Turnberry Gap Cover to your family / friends / colleagues? Absolutely. wish you were a medical aid as well. Thank you for your wonderful service. I really appreciate all you did for me. BEV KLEIN
Excellent – easy to submit claim and claim swiftly handled. I submitted an online claim which was very user-friendly. Great product and service. Lauren Shoba