What Is Gap Insurance and How Does It Work? (2025)

What Is Gap Insurance and How Does It Work?

What is Gap Insurance? Everything You Need to Know

Gap Insurance

For sure — the cost of health insurance is one of the main reasons people delay early retirement. And it’s one of the most common questions I get when it comes to early retirement planning. But you actually have several options, and some might be more affordable than you’d expect. Here’s what early retirees use to bridge the gap before Medicare: 1️⃣ Spouse’s Plan Usually the easiest and most cost-effective if your partner is still working. 2️⃣ COBRA Keeps your employer plan for up to 18 months.