schemes act provides good protection for senior citizens
As you age, your healthcare costs generally increase quite
South African medical schemes are not permitted to charge higher
contributions based on age. This means that younger members of the
scheme contribute the same amount for the same cover as older members.
In your senior years this usually means that medical scheme
contributions can be much less than the cost of the healthcare you
actually use. For older members, therefore, the cover offers
exceptional value for money.
To benefit from this system you must have been a member
of a medical scheme from a younger age or you may have to pay “late-joiner
may assess risk and use risk management to protect funds
Be aware that applying for membership of a scheme later
in life, can affect when you may start claiming may claim for healthcare
costs. Late-joiner fee can be from 5% up to 75%, worked out on part
of your contribution and based on how long you have not belonged
to a registered scheme after the age of 35. The fee formula is a
standard calculation. This fee is to make up for not contributing
to the medical scheme from a younger age and will apply for the
duration of your membership.
Before you accept the terms, the medical scheme will also explain
whether they applied a late joiner fee or waiting periods to your
Choose the best
healthcare cover that you can afford!
Medical schemes offer different options to cater for varying
healthcare and affordability needs. In choosing your healthcare
cover, you must consider what you can afford in order to get the
best cover for your unique healthcare needs. Contact a financial
adviser for the best advice on healthcare cover.
Alain Peddle, Head of Research and Development,