Part of making sure that you give the best of yourself to your new business is to make sure you’re in good health.
One of the most valuable assets in any small business is something that entrepreneurs often overlook – their own health. One way to invest in your health is to make sure you have a solid medical aid policy in place.
Jeremy Yatt, Principal Officer of Fedhealth says that, besides being a financial safety net, if you get sick or are in an accident, medical aid can also encourage you to stay healthy in the longer term.
As we approach the end of 2018 and med aid decisions become critical, Yatt provides small entrepreneurs with advice on what questions you should ask yourself when it comes to choosing the most appropriate plan?
1. How healthy are you?
If you’re young, there’s a good chance you’re relatively healthy and not plagued with serious health issues – but this isn’t always the case. You may have a chronic condition such as diabetes or asthma, where you need regular check-ups and medication. If this is the case, will your medical aid plan cover the costs of managing your chronic condition?
2. How much can you spend each month?
If you’re self-employed, you won’t have the luxury of your company paying your salary – or your medical aid cover. Compile a budget and work out exactly how much you can afford to pay towards your medical aid cover per month, bearing in mind that you may have to pay in extra for things like day-to-day medication, medical specialists out of network or even membership fees for your medical scheme’s rewards programme.
3. Is there a waiting period involved?
Medical aids are able to apply waiting periods, where you won’t be covered for a certain period of time after you join their scheme depending on your health and previous medical aid cover.
If you’re joining with a pre-existing condition, remember that you won’t be covered for up to 12 months as soon as you become a member, so you’ll need to set aside money for any related costs during this time.
4. Are you planning on starting a family?
As a young entrepreneur, starting a family may be the last thing on your mind – but it’s important to factor this in when joining your medical aid as it becomes very important later on. You can’t join a medical scheme if you or your spouse is already pregnant (just as we explained in point number 3, there’s a 10-month waiting period for the “pre-existing condition” of pregnancy). Things like maternity benefits can be a lifesaver in terms of footing the bill for pregnancy and birth costs, so it’s worth thinking about this long before you’re ready to settle down.
5. What does the hospital plan offer?
If you’re young and healthy, chances are you’ll most likely opt for a hospital plan, so don’t just compare medical schemes in general – compare their hospital plans specifically. A hospital plan has the lowest premiums but also the lowest coverage: generally, it covers you if you’re admitted to hospital, but you pay for any other day-to-day medical expenses such as doctor visits and medication.
Many hospital plans also come with the option of a medical savings account (MSA) attached, where you can access a certain portion of money per year for these day-to-day expenses. Others, like Fedhealth’s MediVault offering, take this even further – you can “borrow” a certain amount of money for day-to-day medical expenses from the Scheme, and then pay it back over 12 months, interest-free.
6. What does the fine print say?
Before you choose a medical aid plan, make sure you know exactly what’s covered and what’s not, including things like in-network and out-of-network hospitals, co-payments, limits and exclusions. Also research the scheme’s pay-out rate: do they pay medical aid rates or higher rates, which many hospitals and specialists charge?
“Owning your own business is about investing in yourself, including your time, your ideas – and your health. It’s also about juggling lots of balls in the air at the same time. With a solid medical aid plan in place, you can at least know that you have your health looked after should something happen – which means your business can keep going and thrive well into the future,” concludes Yatt.