Rerouting your health risks2018-09-20T19:19:45+00:00

Rerouting your health risks

Affordability of medical aid on a single income becomes a balancing act sometimes.

Another important consideration is safeguarding your most valuable asset – Your health, as well as that of your dependents. Protecting your health through a medical aid solution is not just recommended, but almost a necessity in today’s world.

There are also some important factors to consider:

  • Should you not be a member of a medical aid when you are over the age of 35 severe penalties may be imposed on your contributions at a later stage of life.
  • If your medical aid is being paid for by your spouse, have a look at your decree to see for what time frame this will be and plan accordingly!
  • It is important to implement a solution that not only suits your pocket but will also provide you with tangible benefits.
Number of years over the age of 35 during which you have not been a member of a medical scheme  Late-joiner penalty Penalty on a premium

of R1 000 a month

1–4 years 1.05 x monthly premium R50
5–14 years 1.25 x monthly premium R250
15–24 years 1.5 x monthly premium R500
25+ years 1.75 x monthly premium R750
  • If you had a break in membership after the age of 35 then the above late joiner penalties will apply to you for the rest of your life.
  • It is always safer to get your own medical cover even if it pays only certain amounts for procedures. Make sure you budget for it.
  • Some life policies offered by insurance companies will cover for medical events which is better than having no cover. BUT this will leave you with a break in membership on a medical scheme. Make sure you get appropriate advise based on affordability and your needs.  It will reduce your financial risk.
  • A hospital plan will cover you in the event of major hospital procedures and 26 chronic conditions (like asthma). So if you are fit and healthy this type of plan will be sufficient. Your day to day expenses you will ten fund as and when from your own pocket.
  • You will be allowed to change your option on the scheme once a year, usually before the annual increases. Some schemes will allow you to down grade to more affordable options.
  • Make sure that you budget for co-payment as some options require this and it could have an impact on your cash-flow. Best you have it available in your emergency savings vehicle.
  • A combination of a hospital plan and a Severe Illness policy should cover you comprehensively and is also more affordable. There are a number of options available.