NAFCU Services Blog

Dec 05, 2023
Categories: Education

Understanding HAP and Recup: Bridging Coverage Gaps

By:  Franklin Madison

In today's uncertain times, insurance coverage is important for safeguarding one's financial stability. Two products that can help bridge coverage gaps are the Hospital Accident Plan (HAP) and Recuperative Care (Recup) insurance. Let's delve into what these offerings entail, how they can benefit individuals, and how they can complement existing coverage.

Hospital Accident Plan (HAP)

HAP insurance provides invaluable cash benefits to policyholders in the event of a covered accident leading to hospitalization. These benefits can be utilized for various expenses, including day-to-day living costs and other out-of-pockets expenses.

One of the notable advantages of HAP is it’s a guaranteed issue product, meaning members can enroll in coverage without the need for medical examinations. This coverage can extend to the insured’s spouse or domestic partner, along with their eligible children, depending on the chosen level of coverage.

Recuperative Care (Recup)

Similar to HAP, Recup offers coverage for covered accidents, but it goes a step further by also covering sickness. This insurance provides cash benefits after an accident or illness that can help offset recuperation-related expenses. Recup does not exclude pre-existing conditions, offering coverage for all consumers.

In situations where an insured experiences an accident or develops an illness requiring hospitalization that hinders their ability to work, Recuperative Care insurance steps in to cover day-to-day expenses. Like HAP, coverage details may vary based on carrier, state, and other factors.

Combining HAP and Recup

The synergy between HAP and Recup is unmistakable. HAP covers hospitalization due to covered accidents, while Recup adds coverage for any sickness and includes coverage after a covered accident or illness requiring hospitalization, ensuring a seamless continuum of insurance protection for covered injuries not covered by any other insurance a member may have.

Addressing Coverage Gaps

Recent reports from the Federal Reserve underscore the importance of being prepared for unforeseen expenses. Offering HAP and Recup can help provide members with peace of mind, especially in situations where existing insurance coverage may have gaps. This not only serves your members' financial well-being but also strengthens your relationship with them.

Tailored Solutions for Diverse Needs

Understanding that your members have diverse demographics, needs, and lifestyles is crucial. Offering a range of insurance products allows them to choose the ones that best suit their unique circumstances. Personalized marketing ensures that members receive offers tailored to their specific needs, based on comprehensive data sources, models, and expert analysis.

Partnering with Franklin Madison

Choosing a turnkey third-party administrator like Franklin Madison to offer HAP and Recup streamlines the process for credit unions. Franklin Madison handles marketing, administration, and claims assistance, alleviating additional workload for your staff. With over 50 years of industry experience and a commitment to customer-centric solutions, Franklin Madison helps institutions build comprehensive insurance programs that benefit both members and revenue streams.

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