The Wealth Room

Avoid expensive medical aid premiums

The sooner you join a medical aid, the better. Here’s why: The number of years you have been/not been on a registered medical aid in South Africa can have a big impact on your premium. Any medical aid you consider joining can load your premium according to the Medical Schemes Act.

Years count in your favour

The medical aid will take your age and deduct it from age 35, which will give the number of years you need to prove you have been on a registered medical aid in South Africa. There will be no loading if you have proof of being on medical aid for all those years. If there is no proof, you can expect the following:

• 1 to 4 years = 5% loading
• 5 to 14 years = 25% loading
• 15 to 24 years = 50% loading
• 25+ years = 75% loading

Pre-existing conditions are excluded

If you have not been on a registered medical aid for 90 days prior to your application, all your pre-existing conditions will be excluded for a 12-month period from the start of your membership. Discovery Health can also apply a 3-month general waiting period, which means you will have no cover for 3 months. However, you will still have access to Prescribe Minimum Benefits (25 chronic conditions and over 200 emergencies). See http://www.medicalschemes.com/medical_schemes_pmb/index.htm for more details on PMBs.

To find out if you will be penalised with any premium loadings, chat to one of our our Certified Financial Planners®.