Choosing the right medical plan can be a pain in the neck and in the pocket.
There are about 81 medical aid schemes in South Africa, 21 of which are open-plan medical aids.
Financial advisor Shaheed Peters says it can be difficult finding the right package to suit the budget and needs of different people.
Whether it's medical aid, medical insurance or gap cover, Peters says consumers need to consider their options carefully.
We're living in tough enough times. This is putting a strain on consumer pockets.— Shaheed Peters, Independent financial advisor
Think about your needs, how healthy are you, what life stage are you in and the needs that will influence your choice.— Shaheed Peters, Independent financial advisor
Here is some of his advice:
- Your medical aid contribution should not exceed 10% of your monthly income.
- Assess your medical needs and create a budget for how much you can afford to pay.
- If possible, consult with a financial advisor or medical broker who can help you compare your options.
- If you are a parent or have a chronic illness, comprehensive cover is the way to go.
- A hospital cover plan is a more affordable option if you are young, independent and healthy.
- Be aware of any other conditions such as waiting periods on pre-existing health conditions.
You need to make sure that you are comparing the same benefits alongside each other and not simply choosing the cheapest options.— Shaheed Peters, Independent financial advisor
Gap cover is there to cover the in-hospital medical expenses that medical aids won't cover in totality.— Shaheed Peters, Independent financial advisor
Listen to the discussion for more detailed advice:
This article first appeared on CapeTalk : Six tips to help you choose the right medical aid plan