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o Physiotherapy consultations and treatment o Biokineticist consultations and treatment o Dietician consultations and treatment o A smoking cessation programme o Blood tests o X-rays
o New moms will also be able to access vouchers offering up to 70% off baby products at Baby City 2020 Contributions The Fund announced that the increases for 2020 range from just 6.2%, with an average increase on risk contributions of 9.4% and an average increase of 9.9%. The increases were as follows:
Click here to download the 2020 product brochure Please contact Namhla or Tammy in our Health and Wellness Department, email [email protected], if you have any queries about Bonitas Source: Bonitas
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Click here to read more on Medical Aid enhancements
Please contact Namhla or Tammy in our Health and Wellness Department, email [email protected], if you have any queries about Discovery Health Source: Discovery ![]() It’s now time to review your medical aid scheme cover for 2020. This means you have a window within which you can switch to a different plan for the new year. This window usually closes at the end of November (depending on your current provider), so don’t delay collecting the necessary information. This is not a decision to be rushed. Why do I have to decide now? Medical aid providers allow you to switch to a higher plans once a year (at the end of the year) without penalties or consequences. If you want to save on premiums or you need to increase benefits, now is the time to do it. What if I want to change providers altogether? If you are unhappy with your medical aid provider, you can switch to another at any time of the year. But before you do, consider the following: Waiting Periods Medical Aids by law must accept anyone who applies to join their scheme. To protect themselves from older or sickly members that join without having contributed to the risk pool, they usually impose a waiting period of between 3 and 12 months. Waiting periods will apply if 1) you have not been a member of another South African medical aid for the past three months or more, 2) if you change medical schemes before 2 years of being covered with your previous medical aid provider and 3) if you have a pre-existing medical condition. Finding out about any waiting periods is extremely important before deciding to change providers. Late joiner penalty As an additional means to manage the risk of older or sickly members joining without having contributed to the risk pool, medical schemes (according to the Medical Schemes Act) are entitles to add a late joiner penalty to your premium if you were not part of a medical scheme before 01 April 2001. The late joiner penalty is calculated (using a prescribed formula) based on the number of years that you were not on a registered South African medical scheme. The late joiner fee can range between 5% and 75% of the total contribution, depending on the number of years that you were not covered by a medical scheme. Please contact Namhla or Tammy in our Health Department, email [email protected], to find out about different Medical aid options Source: Medicalaid.co.za ![]() Let us use a case study to illustrate how financial planning can help a young family. Gavin lives in Joburg, 29 years old, is married to Ntombi with a 1-year old son Siya, named after the Sprinbok captain Siya Kolisi. Gavin works in a family business with a monthly salary of R30,000. In addition, he gets extra income of about 2,000 US dollars per year from YouTubing. The monthly expenditure of Gavin's family is R18,000. He can save about R10,000 a month. Looking at Gavin's personal balance sheet: He has no house, no car under his name, and no loans. He has R200,000 in bank deposit. He has a 10% stake in the family business. He has a life insurance policy with the following benefits: Life insurance R2, 361,000. Lump Sum Disability R2, 361,000 Severe Illness Benefit R944,400 Income disability benefit R7,300 per month He contributes R1,277 per month to a retirement annuity, retirement age 55, and current value R61,500. Gavin's family is on Discovery Essential Saver option, plus a gap cover policy to cover for medical expense shortfalls. The marriage between him and his wife is in the community of property. His wife is a housewife. His financial dependants are his wife and son. Gavin would like to buy a house of his own and invest overseas. Asked about his retirement planning, he says that he would like to retire at the age of 55 (although he knows it might be an unreachable dream), with a monthly income of R15,000 in today's money, plus travel abroad every year. The house and car loans will be paid off and there is an emergency reserve. For his children, he wants to provide for their education, until they complete their university degrees. I use a professional financial planning program to do financial needs analysis for Gavin and produce a financial need analysis report. Then I draft a proposed financial plan, with some preliminary recommendations to Gavin and Ntombi: 1. Risk planning Since Gavin has a single-income family, his child is still young, his life insurance is insufficient. He needs an additional R4,700,000 cover to provide protection for his family, especially his child's future education and living expenses. According to the financial analysis, he has enough severe illness insurance coverage and lump sum disability cover. His income disability benefit needs to be raised to R13,700 per month. The objective of income disability benefit is that when the insured is temporarily or permanently unable to work, the insurance company pays a monthly income as compensation until he goes back to work or until his retirement age. The cost of additional insurance benefits is R412 per month. I recommend that Gavin buys Discovery Global Education Protector, private school option. If he dies, is disabled or has a major illness, Discovery will cover the cost of tuition and extracurricular activities until the age of 24. It also includes a University Funder Benefit, which helps to pay part of his child's tertiary education fees . Monthly premium R358.07. 2. Investment planning I use the three-bucket approach to financial planning, which is easy for clients to understand. The first bucket of money is the money needed in the next two years. It needs to be capital secure and highly liquid. It can be withdrawn at any time. It can be an emergency fund. I suggest that Gavin has R200,000 in the bank, in a high-interest account such as money market account or call account, which can withdrawn at any time.
The second bucket of money is the money needed for years 3 to 10. It can partially invest in growth assets, but seek stability. A suitable investment vehicle is a conservative fund. Part of the child’s education fund belongs to this bucket. The third bucket is the money that is needed only after ten years, usually for retirement funding, child’s education fund and long-term capital growth. I suggest that Gavin invest in equity funds, which have shown to have the highest long-term returns over the long term, but have short-term fluctuations (volatilities). It can be done on a debit order basis, to benefit from a disciplined investment approach and Rand cost averaging. In addition, I suggest that he invest overseas, in US Dollars, to benefit from investment opportunities internationally, diversify risks, and hedge against long-term depreciation of the South African Rand. He can open an account with a minimum investment of 1,500 US dollars. 3. Education fund The analysis points out that Gavin needs to invest R6, 898 every month for the next 18 years, for his son's education. I suggest that he can start a tax-free investment account in his son's name and debit R2,750 from the bank each month to invest in a long-term growth portfolio. The investment value is expected to be R1,121,886 after 15 years. 4. Retirement planning In calculating the capital required for retirement, I used the following assumptions: Retirement age 65 (not client's wish of 55) Monthly income, today's value of R22,100. This is not the R15,000 Gavin indicates to me in the initial discussions, as after taking into account the medical expenses in the old age and the desire to travel abroad, this is the more realistic figure. Inflation rate 6% Investment return 8% The retirement capital required is R31, 415, 100. Gavins existing Retirement Annuity is expected to reach R6,077,840 on retirement. In order to achieve the retirement income target, Gavin needs to invest an additional R5,390 per month, increasing by 6% per year. 5. Estate planning I recommend that the Gavin and his wife make a joint will to distribute the estate in South Africa as he wishes. From this case study, you can get a glimpse of the process, details and the wide areas covered in personal financial planning, tailored to the needs of a person or a family. The more assets and the more complex a person's financial situations, the more complicated is the financial, tax and estate planning required. ![]() Being involved in an accident is an awful experience that every driver is never prepared for. Are you aware of what you can claim for and your procedures going forward? It’s stressful enough if your is car written off by insurance, but if you’re unsure the processes involved, it’s even worse. Barend Smit, Marketing Director of MotorHappy, a supplier of motor management solutions and car insurance options, explains that your car is considered a “write off” when, after an accident, your insurer deems the cost of repairs higher than the insured value of your car. Smit says: "When you’re involved in an accident it’s obviously a highly stressful situation, especially if anyone has been hurt. Try to keep calm and ensure you get all the necessary information required." The following steps are important, if you’ve been involved in an accident:
“In some cases, it’s viable to repair the car, and in others it is safer and more economical to write it off. If your car is written off, and it’s still under financing, you must let your financing company know. Technically, the car is still owned by the financier until your insurance company settles the claim and pays the outstanding financing amounts to them,” says Smit. Your payout from your insurance company will largely depend on your excess (the amount you pay first when you make a claim), the amount you still owe if your car is being financed and the depreciation of your car (the decreasing value of your car based on wear and tear). "If you believe your car can be repaired economically and that it shouldn’t be written off, you can either escalate the issue at your insurance company to find a resolution, or you can appeal to the Ombudsman for Short Term Insurance," advises Smit. MotorHappy has partnered with some of South Africa’s top insurance companies to provide vehicle insurance. Various options are available but the most extensive option available is comprehensive car insurance, which covers you in the event of accidental damage, theft and hijacking. It also covers your car for damage caused by weather conditions such as storms and floods. Comprehensive insurance also covers you if you are responsible for an accident and need to pay for the repair of damages to the other car. "Comprehensive insurance might be the most expensive type of insurance, but it offers the most cover," says Smit. "Insurance might be deemed as a ‘grudge purchase’ but it can protect you from disastrous financial loss if you’re involved in a vehicle that’s not covered by insurance. It’s a fact that many cars on South African roads are not insured so it’s important to protect yourself by investing in insurance." Third Party: Another type of car insurance available to South Africans. Third Party only does not give you any protection or financial assistance if your vehicle is damaged but it does protect you if you cause damage to someone else’s vehicle, or if you injure another person. This type of coverage is the most affordable because of how limited the coverage is. Third Party with Fire and Theft protects you for damage you cause to other people and/or their vehicles, and your vehicle is also covered in the event of fire, theft or hijacking. There is no coverage if your vehicle is involved in an accident with another vehicle. If you would like to register a claim Contact Rethabile in our Short-term department, email [email protected] , tel (011)658-1333 Written by: DLeigh-Ann Londtrop Source: Wheels24 ![]() What happens when my benefits start and what do I need to know?
The following benefits needs pre-authorisation
The following benefits do not need pre-authorisation
How to get pre-authorization • Please call 0860102 493 to get an authorisation number • Please ensure that you have the information regarding the treatment required- E.g. Policy Number/ date of treatment/ Dr or Hospital practice number/ ICD10 Code, and Procedure Code Day-to- Day Benefits These are the benefits that are only available from your chosen Ingwe Active Primary Care network doctor. Chronic benefits to a list of medicine, referred to as s Network-entry-level formulary Day-to-day benefits are subjected to the network’s protocols, which are the rules and provisions set by the Network. Benefits are also subjected to the Network’s list of applicable tariff codes. What to do when wanting to see a doctor? You may visit any Doctor on the Ingwe Active primary care network. To check which doctors are in the area, you can call 0860 102 493 or visit Momentum website at Ingwehealth.co.za Momentum allows members to use any doctor on the Ingwe Active Primary Care network doctor. If you visit a non-Network doctor, you will have to use the emergency / casualty visit and pay R100 co-pay, this visit is covered at 100% of the Momentum health rate. There is no limit to the number of times that may visits the Ingwe Active Primary Care network doctor, however all the visits for the 11th onwards must be pre-authorised by contacting the call centre on 086 0102 493 How and where to find Doctor near your area To check which doctors, you can call 0860 102 493 or visit the website ingwehealth.co.za To apply for the Ingwe option for your chid please contact Nmahla or Tammy in our Health Department, email [email protected] , ![]() Financial planners advise clients on how best to save, invest, and grow their money. They can help you tackle a specific financial goal—such as readying yourself to buy a house—or give you a macro view of your money and the interplay of your various assets. Some specialise in retirement or estate planning, while some others consult on a range of financial matters. Don’t confuse planners with stockbrokers — the market mavens people call to trade stocks. Financial planners also differ from accountants who can help you lower your tax bill, life insurance agents who might lure you in with complicated life insurance policies. Anyone can hang out a shingle as a financial planner, but that doesn’t make that person an expert. They may tack on an alphabet soup of letters after their names, but CFP (short for certified financial planner) is the most significant credential. A CFP has passed a rigorous board exam administered by the Certified Financial Planner Board of Standards about the specifics of personal finance. CFPs must also commit to continuing education on financial matters and ethics classes to maintain their designation. The CFP credential is a good sign that a prospective planner will give sound financial advice. Still, even those who pass the exam may come up short on skills and credibility. As with all things pertaining to your money, be meticulous in choosing the right planner. Typically, financial planners earn their living either from commissions or by charging hourly or flat rates for their services. A commission is a fee paid by a life insurance company whenever someone buys a policy. For reasons we’ll explain later, you may want to avoid financial planners who rely on commissions for their income. These advisers may not be the most unbiased source of advice if they profit from steering you into particular products. A growing number of financial planners make money only when you pay them a fee for their counsel. These independent financial planners don’t get a cut from life insurers or fund companies on investment products. You might pay them a flat fee, such as R25,000, for a financial plan. Or you could pay an annual fee, up to 1% of all the assets—investment, preservation fund, retirement annuity, education fund and tax-free investments — they’re minding for you. Others charge by the hour, like lawyers. Yes others charge a monthly subscription. You might also encounter financial planners who cater exclusively to the rich and refuse clients with less than R5,000,000 to invest. Don’t take it personally - hugely successful planners would just prefer to deal with big accounts rather than beginner clients. You want a planner who’ll make the time to focus on your concerns and is interested in growing with you. Should You Use a Financial Planner? You can certainly go it alone when it comes to managing your money. But you could also try to do it yourself when it comes to auto repair. In both areas, doing it yourself is a brilliant idea for some, and a flawed plan for many, many others. Mastering personal finance requires many hours of research and learning. For most, it’s not worth the time and ongoing effort. As you get older, busier and (it is hoped) more wealthy, your financial goals – and options – get more complicated. A financial helper can save you time. Financial planners can also help you remain disciplined about your financial strategies. They’ll make the moves for you or badger you until you make them yourself. Procrastination can cause all sorts of money problems or unrealised potential, so it pays to have someone riding you to stay on track. We’re not suggesting that you ignore personal finance and turn over all your concerns to an adviser. But even if you know the basics, it’s a comfort to know that you have someone keeping watch over your money. Any good, independent financial planner considers a vast range of laws and regulations, together with the relevant range of products to give you customised advice, while keeping your personal circumstances in mind. Financial planners therefore need to understand tax implications and product offerings available in the market. They need to keep abreast of ever-changing financial landscapes and legislation, while always being mindful of politics and the economy. But ultimately, your financial planner needs to put you, your goals and your needs first, above all else. By using an independent planner you have the peace of mind that the planner is not under pressure to punt products of certain product suppliers. It may sound crazy to give someone 1% of your annual assets to manage them, but you get a buffet of advice about almost anything related to personal finance. The price becomes sensible when you consider that you’re paying to establish a comfortable retirement, save for your child’s college or choose the right mortgage when borrowing millions of rands. How to Find the Right Financial Planner It’s best to go with a certified financial planner (CFP), which is an instant signal of credibility – but not a guarantee of same. To start, ask people like you if they can recommend a planner. If you have kids, ask a colleague who also has children. If you’re single and just out of college, check with a friend in the same boat. If possible, you want to find a planner with successful experience advising clients in the same stage of life as you. For more leads, check the Financial Planning Institute of Southern Africa. A few more tips for finding the best planner for your situation: Consider the planner’s pay structure. You typically want to avoid commission-based advisers. Planners who work on commission may have less than altruistic incentives to push a certain life insurance package or investment product if they’re getting a cut of that revenue. But fee-based advisers aren’t perfect. Advisers earning 1% of your annual assets might be disinclined to encourage you to liquidate your investments or buy a big house, even if those are the right moves at a particular point in your life, because their fee would shrink. If you’re starting out and don’t have a trove of assets, a planner who charges by the hour or a fixed fee could be the best fit. These planners are best for when your needs are fairly simple. Typically, hourly planners are just building their practice, but that usually means they’ll take the care to get your finances right. After all, they’re relying on your recommendation to grow their business. Finally, many experienced advisers do hourly work because they enjoy working with younger clients who can only afford to hire someone at that rate. Run a background check on your planner. Start with these two questions: Have you ever been convicted of a crime? Has any regulatory body or investment-industry group ever put you under investigation, even if you weren’t found guilty or responsible? Then ask for references of current clients whose goals and finances match yours. Check to ensure the credentials the person claims to have are current. Google them, see who administers the designation, then call that administrator to verify that the credential is valid. Beware of market-beating brags. Warren Buffet outperforms the market averages. There aren’t a lot of people like him. If you have an initial meeting with an adviser and you hear predictions of market-beating performance, get up and walk away. No one can safely make such guarantees, and anyone who’s trying may be taking risks that you don’t want to take. Asking someone whether they’ll beat the market is a pretty good litmus test for whether you want to work with them. What they should be promising is good advice across a range of issues, not just investments. And inside your portfolio, they should be asking you about how many risks you want to take, how long your time horizon is and bragging about their ability to help you achieve your goals while keeping you from losing your shirt when the economy or the markets sag. Source: Adapted from WSJ.com |
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