If You Cannot Afford a full Medical Aid, then consider an In-Hospital only plan and cover your greatest threat of high medical costs at a very affordable premium.
Healthcare is so expensive that many people are considering saving for all medical costs on their own.
But this can be a financially devastating decision!
We face two threats of high costs - private hospitalisation and dentistry.
These are the basic areas you should cover with a medical aid.
This Blog explains why ...
1. First, you will miss out on the benefits medical schemes have to provide, irrespective of the plan you choose.
All medical aids, including in-hospital only plans, must offer Prescribed Minimum Benefits (PMB) cover.
This includes around 270 hospital procedures and and 26 chronic illnesses.
PMBs apply in respect of conditions that, if left untreated, will result in death or detrimental quality of life.
In terms of current legislation, this is cover you are entitled to claim from.
2. It is highly unlikely you will ever save enough to protect yourself from private hospitalisation expenses.
Private care is just so expensive and the time to save a sufficiently big fund is just too short!
The costs of possible hospitalisation cannot be quantified.
How much do you need to save? What if you have dependents as well? How much should you save every month?
Diverting savings from your #1 goal, a pension, is not a recommended financial strategy!
Joining a lower cost plan, in-hospital only plan and savings towards a pension is the real goal you should have.
3. Hospital admission will require a considerable upfront payment.
If you need emergency treatment, without a medical aid, you will have to pay a deposit which can be substantial.
You may be denied treatment and referred to a government facility if you do not have the money.
What if you need a hospital after hours?
4. The longer you do not join a healthcare aid, the higher the late joiner penalty will be.
A new medical scheme member, over the age of 35, is subject to a late joiner penalty.
The amount of the penalty is based on the number of years you have not been a medical aid member – the greater the years - the higher the penalty
It is a monthly penalty – for life and can be up to 75% per month!
5. A savings fund is your money.
You pay an added amount every month that is diverted in to this fund. However, you cannot use the money as you wish.
The medical scheme dictates how you use it.
And they do not pay interest on your savings – like you would get in a bank account.
Yes, they do offer you a year’s worth of savings upfront, but you pay for that!
You don’t get your full allocation of savings in your fund.
There is a shortfall that presumably goes to the scheme for administering and offering your up-front credit.
If you can afford to pay for your own day-to-day costs (through your own savings) and accept the small risk of self-funding whilst your savings grow, then maybe avoid plans with savings and join an in-hospital only plan.
Private hospitalisation and dentistry are the two highest cost threats we face.
And Genesis Private is the best hospital cover plan to offer these benefits!
It has cover for: