MyMoney Online

Why medical aid is woefully inadequate (and how affordable gap cover helps)

(Click here for more personal finance articles.)

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)


Recommended

by NEWSROOM AI
Read More
Covid-19: Struggling to pay - or collect - the rent?

Covid-19: Struggling to pay - or collect - the rent?

The Money Show's Bruce Whitfield interviews property lawyer Julian Scher about rental payment problems caused by Covid-19.

'If you still have a job, get rid of your debt as fast as you can'

'If you still have a job, get rid of your debt as fast as you can'

Personal finance expert Warren Ingram has advice on how to survive – or even thrive – amidst the Covid-19 outbreak.

Struggling to pay a debt? Your options: credit insurance vs debt relief holiday

Struggling to pay a debt? Your options: credit insurance vs debt relief holiday

Personal Finance expert Maya Fischer-French on the pros/cons of dipping into credit insurance vs opting for a debt relief holiday.

Why Anchor Capital is buying MTN, Sibanye and Transaction Capital

Why Anchor Capital is buying MTN, Sibanye and Transaction Capital

The Money Show’s Bruce Whitfield asks Peter Armitage (CEO at Anchor Capital) for his stock picks of the week.

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! On 1 March 2015 government introduces tax free savings accounts. Financial planner Claude Hannah explains…

How much you should save for retirement

How much you should save for retirement

You know you should save for retirement, but do you know how much? Financial planner Claude Hannah breaks it down in simple terms.

Popular articles
Mkhize confirms 24 COVID-19 deaths as cases breach 2,000

Mkhize confirms 24 COVID-19 deaths as cases breach 2,000

Health Minister Zweli Mkhize said that with over 73,000 people already tested, President Cyril Ramaphosa’s extension of the national lockdown had lifted pressure on the country’s health system.

President Cyril Ramaphosa extends lockdown by 2 weeks

President Cyril Ramaphosa extends lockdown by 2 weeks

We all want it to be over but our immediate priority must be saving the lives of our fellow South Africans, says President Ramaphosa.

[WATCH LIVE] President Ramaphosa addresses nation on efforts to contain Covid-19

[WATCH LIVE] President Ramaphosa addresses nation on efforts to contain Covid-19

President Cyril Ramaphosa is addressing the nation on society’s ongoing efforts to contain the spread of Covid-19.

How to start a side hustle in South Africa

How to start a side hustle in South Africa

The Money Show’s Bruce Whitfield asks serial entrepreneur Nic Haralambous for advice on starting a side hustle.

'‘Government must allow e-commerce during lockdown like China did in Wuhan'

'‘Government must allow e-commerce during lockdown like China did in Wuhan'

Should e-commerce expand during the lockdown? Bruce Whitfield interviews Takealot’s Kim Reid and Adrian Zelter (Coronation).

Even if SA recovers it won't help tourism if Covid-19 remains elsewhere

Even if SA recovers it won't help tourism if Covid-19 remains elsewhere

SA Tourism CEO Sisa Ntshona on how the government is assisting and how the industry might recover and grow after Covid-19.

[LISTEN] Teddy Bear clinic launches campaign for chidlren's masks

[LISTEN] Teddy Bear clinic launches campaign for chidlren's masks

Joanne Joseph speaks to Teddy Bear Clinic director Dr Shaheda Omar about the project.

Chris Hani family to launch youth development foundation

Chris Hani family to launch youth development foundation

Granddaughter Nosipho Hani-Khumalo says the foundation will focus on creating opportunities for youth.

Rahima Moosa Nursing College ditches finger-scanners for facial recognition

Rahima Moosa Nursing College ditches finger-scanners for facial recognition

Vice-principal Jazmin Gassiep says she was motivated by listening to 702's coverage of COVID-19 to upgrade their system.

Johannesburg is COVID-19 epicentre with more than 400 confirmed cases

Johannesburg is COVID-19 epicentre with more than 400 confirmed cases

Eyewitness News reporter Thando Kubheka gives an update from Premier David Makhura's briefing on coronavirus.