SHOULD YOUNG PEOPLE SEEKING COVER WAIT FOR NHI?

The “wait and see” attitude of the young and healthy could proof their undoing. Andre Jacobs  points out that NHI will likely be implemented over a period of 14 years, during which time the entire healthcare industry will undergo a much needed overhaul. He says there are six reasons young employees should not delay in seeking private cover: Insurance is a prepaid activity where one purchases cover before it is needed. Although it is correct to assume that the aged are more prone to illness than younger people, this may not be true in individual cases. There are enough examples of young people in need of expensive health interventions. Medicine is not an exact science and we cannot predict at what age we might fall ill. Younger people are more prone to accidents. Individuals without medical scheme cover will need to make use of the already strained public healthcare system in the event of serious accident related injuries. A 25 year old who chooses to wait for NHI to be implemented will be 39 years old by the time it is fully operational. A private medical scheme would charge this individual a “late joiner” penalty with the result that his or her contribution would be higher than other scheme members with similar benefits. There is no indication that this penalty will apply to NHI, but would certainly impact on the private sectors options available to the individual at a later stage. In the event that the young person contract a chronic disease or cancer before NHI is implemented, the disease will not be covered for 12-months due to the...

EDUCATION POLICIES

More and more parents are starting to realize the importance of saving for their children’s education. Parents want what’s best for their children and know that giving them the right tools to go ahead could ultimately determine their success in life. The right savings vehicle Investing in education is important, but what isn’t always clear is which is the right one to suit you individual needs. Things to consider include whether you’re saving for school tuition or tertiary education, how long you have to invest and how much you can afford to save. Research has shown that many parents invest in their mortgage bonds to hopefully cover the cost of tertiary tuition. While this is potentially a good investment few have the discipline to earmark a certain portion of their access bonds for education purposes and more often than not this is used for renovations, a holiday o a down payment on a new house.   The traditional endowment An endowment is a save option and allows a more structured approach to saving, especially for those who may be tempted to access their funds for other reasons. The product offers a minimum investment period of five years and a maximum of 15 years, with the option to reinvest.   What about education-specific products? Most of the bigger assurers offers education specific policies and quotes can be given to clients on request. Rampant Inflation Inflation must be factored in too. Many clients prefer not to increase their premiums during the term of the policy to buffer against the effect of inflation. But tuition fees increase an average 10% every year!...

JY KAN NOOIT TE VROEG BEGIN NIE!!!

Die Rolling Stones het geweet waarvan hulle praat toe hulle gesing het :”Time is not on your side” Me. Marize Pieters, ‘n beleggingsontleder by Glacier van Sanlam, meen die grootste fout wat mens maak rakende hul aftree-beplanning is om nie gou genoeg te begin spaar nie. “Volgens my is een van die grootste risiko’s rakende welvaatskepping, om te lank te wag voordat ‘n mens begin spaar vir jou oudag.” “Wanneer daar uiteindelik ‘n poging aangewend word om te spaar, onderskat ‘n mens gewoonlik die proporsie van jou inkomste wat maandeliks weggesit moet word asook die tempo waarteen die belegging moet groei.” Sy meen dit is omdat mense juis die krag van saamgestelde rente onderskat. “Saamgestelde ente is wanneer jy rente op rente verdien,” verduidelik sy. “Dit is egter nou wanneer jy die rente wat jy op jou kapitaal verdien het, herbelê en dit nie laat uibetaal as ‘n inkomste nie.” Gewone rente is net wanneer jy rente verdien op die oorspronklike bedrag geld wat jy belê het en die rente wat jy elke jaar verdien gebruik of bestee. Sy verduideleik die beginsel van saamgestelde rente met ‘n simplistiese voorbeeld soos volg: “Jy belê ‘n R1000 kapitaal, wat jy elke jaar herinvesteer teen 10% rente. Na een jaar sal jy R1100 in jou rekening hê. As jy daadie geld weer belê, sal jy in die tweede jaar R1210 in die rekening hê. Na jaar drie sal jou geld al tot R1331 gegroei het en so gaan dit voort. Die aangehegte table illusteer die effek van saamgestelde rente gegewe verskillende tydstippe, groeikoerse en proporsies wat maandeliks gespaar word.   Risikoprofiel Bydrae...

WHY YOU NEED TO BELONG TO A MEDICAL AID

The average of the majority of private hospital bills could amount to less than R60000 per case (excluding associated costs for specialists etc) and schemes invariably experience a few claims each year that would ruin most people financially if they did not belong to a medical scheme. The cost of private hospital bills for a critical car accident victim or premature baby for instance, could easily add up to R1 million in a matter of days. Medical treatment of particular illnesses, such as cancer, are expensive and as new medicines are being discovered, the costs continue to increase and are becoming increasingly impossible for many people to be able to afford out of their own savings!!! So are you receiving value for money? As with your motor vehicle insurance, you need to decide what level of risk you can self-insure. While all medical schemes are required to cover a list of prescribed minimum benefits (PMB’s) on all plan types, there is still a range of benefits to choose from. As waiting periods and late-joiner penalties may be applied on joining a medical scheme, it is important to belong to a medical scheme regardless of your current state of health. You or your family’s life may depend on it.  ...