It may come as a shock, but it’s all there in the small print; most medical schemes do not fully cover you when you’re hospitalised.
Your medical aid limits its cover to the Medical Scheme Tariff (MST) which invariably falls way short of what doctors and/or specialists typically charge.
For a fraction of your monthly medical scheme premium, Gap Cover will ensure that you are not left out of pocket.
Although specific products vary, the majority will cover up to 400 percent to 500 percent of the MST.
In addition, many of them offer other benefits like cover for co-payments as well as accident benefits.
If you don’t have Gap Cover you will have a very large shortfall should you end up in hospital.
Having medical aid or a hospital plan is not enough to fully mitigate financial risk in this regard.
Claude Hannah is a financial planner for Venn-Sure Consulting. He completed his degree in Financial Risk Management from the University of Stellenbosch in 2006 and is currently in the process of completing the post graduate CFP qualification. Claude helps to organise and simplify the often complicated and busy financial lives of his clients. He takes great pride in providing the highest level of service to help his clients build and protect their wealth.
This article first appeared on CapeTalk : Why medical aid is woefully inadequate (and how affordable gap cover helps)