Remember that hospital insurance companies are ‘ for profit ’ unlike medical schemes which are governed by the CMS and are ‘ not for profit ’. The recommendation by most financial advisors is that a hospital insurance product should be used in conjunction with a medical aid or hospital plan , as an income replacement rather than medical aid cover .
And what is GAP cover , how does it work ?
Minding the gap
• GAP cover can only be used if you are on a medical aid
• At times there may be a shortfall between what the medical scheme pays and what the hospital or specialist charges . You are responsible for paying the difference
• There is an insurance policy called ‘ Gap Cover ’ which you can take out to help pay for this shortfall
• The amount you receive depends on your policy but there is an overall annual limit
• Gap cover only covers the shortfall of medical expenses when you are in-hospital
• Some gap cover policies have a waiting period for certain conditions
• Most people take gap cover together with a medical aid hospital plan
• It is important to know that gap cover , like hospital insurance , is an insurance ‘ policy ’ and is registered as a Short-term insurance
• Gap cover premiums are not tax deductable
‘ My advice ,’ says Callakoppen . ‘ Shop around to find the best plan that covers your health needs and suits your pocket . A number of Low-Cost Benefit Options have been introduced by Medical Schemes - such as our Network or Edge Plans .
‘ These are more affordable and give you peace of mind in terms of access to quality healthcare . Interrogate the benefits you receive on the plan you are considering , versus the monthly contributions but , above all , never compromise on your health . If you choose to take out hospital insurance , do so as complementary to medical aid , not a substitute ’.
Bonitas Member Magazine Issue 4 | 2023
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