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More Upside When It Comes To Health Insurance

In the past, you either belonged to a private medical aid scheme or you didn’t. Nowadays there are more than a few new underwriters offering cheaper alternatives to expensive medical aid options. If you can’t afford to spend R1000 on a medical aid plan, what are the alternatives? Can you afford to risk landing up in a government run facility? These are exactly the types of questions new health insurance underwriters have been asking themselves.

What are main differences between a medical aid plan and a health insurance product?
  • A medical aid plan is regulated by the Medical Schemes Act
  • A health insurance product is an insurance product offered by an insurance company
  • Health insurance generally looks to pay out a lump sum of monies for every day the insured is in hospital
  • A medical aid plan looks to cover all the hospital expenses incurred by its members (subject to tariff rates)
As a consumer, you now have more choice than ever before, so let’s look at the pros and cons of health insurance, before you make up your mind whether you should spend any money on it:
  • Pro – Some cover is better than no cover
If someone offered you any pair of shoes in winter rather than the option of wearing no shoes at all, our guess is that you would take the shoes on offer (regardless of the style). Having some type of health cover in place is better than having no cover in place. It’s a bit of a no-brainer. Even if you get paid out R1000, after a day spent in hospital, it will be better than not receiving a cent.
  • Pro – The premiums are affordable
You can get yourself some health insurance for a couple of hundred bucks per month. It really is affordable, so, regardless of your budget, you really could make some space for a policy like this.
  • Con – Because the premiums are cheap, the benefits are capped
If you land up in hospital and you are on a private medical aid, provided your stay is within tariff rates, you can expect for your stay to be paid for in full. And a lengthy stay in a private hospital can cost tens of thousands of Rands. That is why medical aid plans are so expensive - it’s because the cost of private healthcare in South Africa (and globally) is ridiculously expensive. But health insurance products that are marketed at R100 – R200 per month cannot provide the type of cover a medical aid can. It’s that old adage – ‘You get what you pay for’.

That really is the only downside in terms of owning health insurance rather than being on a private medical aid - the products are just not as comprehensive. That being said, the upside is that the premiums are affordable and at least you have some level of cover in case you get ill.

We think it’s simple - If you can comfortably afford to get yourself on a medical aid, do it. But, if your budget doesn’t allow for it, then at the very least, make sure you get some health insurance in place.

Thanks for taking the time to read this article.

If you are looking for a comparative medical aid quote, why not apply here.

If you are looking for a hospital cash back plan, get a quote here.

The iHound