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Holistic Healthcare Planning is Essential

Current statistics paint an alarming picture of the increasing prevalence of life threatening illnesses such as cancer and heart disease. No-one likes to think about contracting one of these ailments, especially when you consider that your medical aid benefits are unlikely to stretch far enough to cover all of the treatment, rehabilitation and other costs incurred. The only way to ensure that you are able to cover these costs is to carefully plan your healthcare funding.

Planning your healthcare funding is essential and should be done with the help of a professional financial advisor, who can guide you through the vast array of product offerings available. If your lifestyle and family history indicate particular risks then this especially important. You need to ask yourself what would happen to you financially if you suffered a serious illness.

“In the face of the rising cost of treatment of illnesses such as cancer, many medical schemes have begun to limit oncology benefits and exclude expensive, advanced treatments. Should you contract cancer in this situation, you may soon find that your medical aid only funds the essential, life-saving treatments you need; anything further would not be available without a significant amount of self-funding. While the prognosis for cancer survival is much better today with modern treatments, the costs often run into many hundreds of thousands of Rands, which may exceed your scheme’s oncology limits and your savings,” explains Craig Harding, managing director of Altrisk.

It is clear that, even if you have medical aid, critical illness and disability insurance covers are an essential financial support should you be diagnosed with a life threatening illness. This is because conditions such as heart disease, stroke, cancer, multiple sclerosis and kidney failure are covered under a critical illness policy. In addition to the cost of treatment, many of these conditions could leave you disabled and unable go to work or going about your daily life.

“Critical illness and disability cover are structured to provide a lump sum payout so that you have the funds available to cover unexpected costs,” says Harding.

However, in planning your cover, it is important to remember that critical illness and disability products are not replacements for medical aid; but complimentary benefits in a well-structured healthcare portfolio.

When considering the costs of treating a critical illness such as cancer, what is often not taken into account is that the financial implications may run well beyond the cost and duration of the initial treatments. High rehabilitation costs can also be incurred over an extended period of time. In addition, if you are seriously ill, it is likely that you will also experience a loss of income due to being unable to work for an extended period of time, possibly even permanently. For the self-employed, this presents an even greater risk.

“Post treatment, living with a critical condition may require a complete change in lifestyle. Think of the costs associated with renovating your home should you find yourself in a wheelchair as a result of illness. These are costs that will not be covered by your medical aid and the financial implications are far-reaching. Cases such as this demonstrate why it is essential to have critical illness and disability cover in place. Disability cover may also be necessary to ensure that you are able to maintain ongoing medical aid membership should you be unable to earn an income,” Harding adds.

Consulting with an independent financial advisor to assess your needs as part of a holistic healthcare portfolio is your best option in being prepared for any of life’s challenges. 

“It’s important to point out that medical aid and critical illness and disability products are not mutually exclusive. Instead, they work together to ensure that you have the funds available to enable you to choose your preferred treatment, the best technology available and the best post treatment options,” he concludes.

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