Are you aware that the average medical fund contributions have increased?
Discovery has gone up by 7.90%, 8.40% for Bestmed, 8.70% for Bonitas and 9.50% for Fedhealth. When we relate these increases to salary increases, we see that by average, salaries have not kept in check with medical inflation. This is important to note as members need to be aware of this difference and not be tempted to decrease their cover. Instead, Fund members should rather be contributing more to their Additional Voluntary Contributions.
Here are a few ways Fund members can better understand their Medical Cover options:
What are you paying for?
When your medical aid increases it is easy to immediately look into lessening your cover. However, many members don’t know exactly what they are covered for. When having another look at one’s cover, it is important to investigate what you currently have and what you can’t live without. Lessening your cover shouldn’t mean you lose your essential benefits.
Medical schemes are varied and often difficult to comprehend in terms of what you actually need. Tapping into the expertise of a financial advisor can make things much easier to understand and can sort the medical chaff from the medical barley.
Gap Cover is essential. Filling in the shortfalls of your cover is a sure way of protecting yourself against unnecessary costs for as little as R100 per month. A medical scheme and Gap Cover ensure that you have a winning combination.
Attend annual member financial wellness presentations. Meet with a financial advisor. Ask questions. Being involved and informed with the resources that you have on hand and how you use them are important in having correct and fair cover.
Your fund has professionals working for you to make sure your needs are met and that you have the appropriate cover. Not engaging in the Financial Wellness Presentations makes it much more difficult to make sure you have all your bases covered.
Independent Financial Advisors can also use their platforms to get you the most for your buck and to fight for resolutions on a claim on your behalf.
Additional Voluntary Contributions
Adding Voluntary Contributions to your fund helps improve your pension savings and increases your tax benefits. Adding regular contributions will allow you to further your future health benefits and financial independence. Likewise, the tax benefits gained from Contributions and Medical payments will improve your tax deductibility.
Essentially with knowledge of what you of paying for, becoming involved in your financial situation and adding Additional Voluntary Contributions can offset the increase in your medical scheme payments.
For more information and if you would like to discuss what the above means to you, contact us below:
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