Why is Health Insurance Popular?

What 5 reasons make Health Insurance popular in 2018?

  1. With medical insurance you have more control over how much you’ll get while in hospital
  2. For many, health insurance seems to be less complex than medical aid with all its rules and regulations
  3. For those who don’t have much money, medical insurance offers solid benefits
  4. Medical insurance isn’t subject to the same regulations as medical aids. Therefore, they can charge different premiums to different customers – many prefer this ‘tailored’ approach
  5. Health insurance isn’t subject to rigid reporting requirements

The price of medical aid is rising too quickly. So South Africans are looking at medical insurance to meet their needs.

Health insurance is going to becoming even more popular in South Africa during 2018. Good health is a priceless gift – something for which you should be grateful.

Why Health Insurance is PopularUnfortunately a good medical aid has become out of reach for many South Africans. The insurance industry has seen the need to create an insurance based product to try and bridge the gap. That makes cheap health insurance popular.

Health Insurance Popular Due to Affordability

Health Insurance is less expensive than a traditional medical aid because the cover is not comprehensive. If you can’t afford a medical aid then Health Insurance is a viable and affordable option.

The legislation that governs medical schemes ensures that certain conditions get full cover from the medical schemes. And this is regardless of which plan you’re on. These are known as Prescribed Minimum Benefits (PMB’s). Because this legislation doesn’t apply to Health Insurance policies, you’ll find that they may not cover all of the costs.

This is why health insurance is becoming so popular – if you can’t afford medical aid, health insurance can at least take the sting out of those very costly medical bills.

No claim process – this is a huge drawcard for those who no longer belong to a medical aid. The member visits the medical services provider without having to pay unless their policy does not cover the treatment. A medical Insurance based product in others words pays the stated benefit out to the member.

A Distinct Difference between Medical Aid and Health Insurance

Regulations with health insurance products surrounding the benefits they offer as well as the  consumer-protection measures they have to adhere to came into effect early in 2017. Regulations under the long- and short term insurance Act were instituted so as to ensure a clear demarcation between medical aids and health insurance.

You need to understand health insurance as certain insurance policies which resembled medical aid too closely have been phased out.

Health Insurance Appropriate for your Circumstances

Make sure that whatever health insurance you choose, the product provider of your choice communicates clearly what they’re offering because they aren’t designed to substitute medical aids.

Health insurance provides you with peace of mind that should something happen to your health, you’ve got access to good care – and affordably too. South Africa has a number of good health insurance providers and between them they offer basic to comprehensive cover at the lowest price. Compare them and shortlist them and then choose the one that suits you the best.

In 2018 there is going to be more working-together with medical schemes and insurance providers so that there is an even bigger product range.

There is a huge growth in health insurance products, simply because of medical being being so prohibitive, even for high income earners.

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All info was correct at time of publishing