Money Heroes
Money Heroes is an empowering series that gives you expert advice from our Momentum Dream Team to help you on your road to financial well-being. This season starts by discussing the importance of life insurance and its significance for you.
All you need to know about medical aid
In the eighth episode, our Money Heroes discuss the significance of medical aids.
Theo Vorster, CEO of Galileo Capital, emphasises the importance of protecting your health as a valuable asset.
If you’re looking to join a medical aid scheme, Nico-Louis Minnie, Head of Health Product and Complementary Solutions at Momentum, shares five considerations to keep in mind.
Finally, Shaun Meintjes, Financial Adviser at Consult by Momentum, explains how Momentum’s HealthSaver+ can help cover unexpected medical expenses.
Watch Theo Vorster emphasise the importance of protecting your health as a valuable asset in the video below:
Protect your health
You need to maintain good health to work, earn an income and fully enjoy life.
“Your health is an important asset to protect,” says Theo Vorster, CEO of Galileo Capital.
While South Africa’s private sector offers some of the best health services in the world, the reality is the public health sector continues to face financial difficulties.
“If you can afford it, you want to buy access to the private sector healthcare so you can use the best possible facilities,” Vorster urges.
Hospital plan vs comprehensive cover
When it comes to affordability, there are various options available. Most medical aid schemes offer a choice between a basic hospital plan and more comprehensive cover.
Hospital plans
A hospital plan is the more budget-friendly option and provides cover if you’re admitted to hospital. It covers all expenses incurred during your hospital stay, including surgery, doctors’ bills and medical tests.
This type of plan, however, doesn’t typically cover any day-to-day expenses, such as General Practitioner (GP) visits or medication.
Comprehensive plans
A comprehensive plan offers cover for both hospitalisation and day-to-day medical expenses, including GP visits, dental and optometry services, prescribed medication, over-the-counter medication, blood tests, ultrasounds and x-rays.
Consider which plan you can afford because it’s better to have the right cover in place before you need medical help, says Vorster.
Watch Nico-Louis Minnie share five considerations to keep in mind in the video below:
How to choose the right medical aid
If you’re considering joining a medical aid scheme – or even switching to another one – Nico-Louis Minnie, Head of Health Product and Complementary Solutions at Momentum, says there are five important considerations to keep in mind.
1. Consider the level of cover you need
Think about what you need cover for – whether you’re currently on chronic medication and how often you have day-to-day medical expenses. Remember, these include GP visits, expenses for glasses, dental care and medications.
2. Consider the cover provided by a particular medical aid
Medical aids typically offer different plans based on the cover you need, so it’s important to understand what services and treatments are included in each option. Make sure the plan you choose covers your current health needs, as well as any potential future medical requirements.
3. Review the network options provided by the medical scheme
Medical aids often offer network options, which is a selection of hospitals, doctors and other healthcare providers that have agreed to offer their services at reduced rates for members. You benefit from lower costs and better rates on medical services by using these network providers.
4. Consider the medical aid scheme’s solvency ratio
The solvency ratio measures how much money a medical aid needs to keep in reserve compared to its total annual contributions to ensure it can pay out claims. Regulations require medical schemes to have a solvency ratio of at least 25%.
5. Partner with a financial adviser
Navigating the medical scheme environment is complex and can be daunting. As such, Minnie advises partnering with a financial adviser, who is best equipped to help you find the right cover for what you need. If you need help finding a financial adviser in your area, visit the Momentum website.
Watch Shaun Meintjes explain how Momentum's HealthSaver+ can help cover unexpected medical costs in the video below:
Saving made easy with Momentum HealthSaver+
Medical aids that pay for day-to-day expenses do so through a medical aid savings account (MSA). The MSA is a savings account built into your medical aid plan, with a fixed amount linked to your contribution for the year. However, a common problem many people face is the money in this account runs out quicker than expected, leaving them to pay for medical expenses out of pocket, says Shaun Meintjes, Financial Adviser at Consult by Momentum.
Save more with HealthSaver+
Momentum’s HealthSaver+ is a voluntary medical savings account that allows you to make monthly contributions. Each payment you make increases your balance, and any medical claims are paid from the funds in this account. You can contribute a minimum of R100 per month, up to a maximum of R11 500.
HealthSaver+ pays for treatments and procedures not covered by your option, such as:
- Treatments not covered by the scheme like cosmetic surgery
- Co-payments for hospital stays, MRI and CT scans, specialised dentistry or medication
Momentum also offers the flexibility to use network hospital or chronic options to minimise your monthly costs, allowing you to add extra funds to your HealthSaver+ account.
“At Momentum, flexibility is important because it helps you have access to the right benefits at the right time,” says Meintjes. “We all go through certain stages in our lives where we need different benefits – so you can choose an option with no savings and add that savings onto it at a later stage when you need it.”
Speak to your financial adviser today if you need to join a medical aid plan or if you’d like to review your current plan to make sure you have the right cover in place.
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward.
Ready to begin your journey?
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. Getting to where you dream of takes grit, determination and most importantly, honesty.
With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward. Our financial advisers have a vested interest in you: what do you value? What are your goals? This deep discovery sets the foundation for a relationship that will bear fruits of success.
Ready to begin your journey?
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