If you’ve been diagnosed with a disease lasting more than three months which is a chronic condition and you then need ongoing treatment. If the medication falls within your medical aid's chronic disease list, you then will be able to use your benefit for chronic medication. Below is a few question answered from the Council of Medical schemes which regulates medical schemes. Is my medical scheme obliged by law to provide cover for certain medical conditions? Yes, these are known as Prescribed Minimum Benefits (PMBs). They were introduced into the Medical Schemes Act to ensure that beneficiaries of medical schemes would not run out of benefits for certain conditions and find themselves forced to go to State hospitals for treatment. These PMBs cover a wide range of ±270 conditions, such as meningitis, various cancers, menopausal management, cardiac treatment and many others, including medical emergencies. However, take note that certain limitations could apply, such as the use of a Designated Service Provider and specified treatment standards. PMB diagnosis, treatment and care are not limited to hospitals. Treatment can be received wherever it is most appropriate, including a clinic, outpatient setting or even at home. Always check your benefits with your medical scheme and make sure you have the scheme's rules at your disposal. Is it true that schemes now also have to provide chronic medication? Yes, the list of PMBs includes 25 common chronic diseases in the Chronic Disease List (CDL) and other chronic conditions within the ±270 Diagnosis Treatment Pair (DTP) section. Medical schemes have to provide cover for the diagnosis, treatment and care of these diseases. However, you should remember that a medical scheme does not have to pay for diagnostic tests that establish that you are not suffering from a PMB condition. The treatment algorithms (guidelines for appropriate treatment) for each of the CDL chronic conditions have been published in the Government Gazette while the chronic diseases in the DTP section are guided by the public sector protocols. This assures you of good quality treatment and reassures your medical scheme that it will not have to pay for unnecessary treatment. Your doctor should know and understand most of the guidelines so that he or she can help you get the treatment you need for any of these conditions without incurring costs that your scheme does not cover. Why are some chronic illnesses covered and some not? The diseases that have been chosen are the most common, they are life-threatening, and are those for which cost-effective treatment would sustain and improve the quality of the member's life. Does my scheme need to do anything to ensure that the Designated Service Provider can treat me? The Council for Medical Schemes has been advising medical schemes to enter into contracts with any DSP they choose, especially State hospitals, to ensure that these providers can supply the necessary services. Many State hospitals have set up separate wards to serve beneficiaries whose treatment and hospital stay is paid for by their medical scheme and to whom the hospital can then afford to provide better service. Other schemes have made arrangements with private hospital and certain retail pharmacies to treat their beneficiaries. Can I be refused cover for the chronic conditions if I do not get authorisation or have certain tests? Yes, medical schemes can make a benefit conditional on you obtaining pre-authorisation or joining a benefit management programme. These programmes are aimed at educating members about the nature of their disease and equipping them to manage it in a way that keeps them as healthy as possible. For example, many schemes offer treatment through groups that manage diseases such as diabetes, and are equipped to give the medication and monitor that disease. To register for your Chronic medication please contact Namhla in our Health Department email [email protected] , tel (011)658 -1333 Source: Council for Medical Schemes
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Robert Kiyosaki multimillioanire and author of "Rich Dad, poor dad" wrote this blog about The mistake millenial parents mistake regarding their children and finance. This is what he had to say; More and more there is an interesting trend: parents paying down the cost of their children’s debt. Whether it be student loans, home down payments, or living at home because of credit card debt, parents of millennials are footing the bill—or at least significantly helping pay down—for their kids’ big debt costs. On one level, I can understand this impulse. Parents naturally love their children and want to help them start life on the right foot. And the high levels of debt that most young people have, along with low salaries and poor job prospects, make it very tough for them to get ahead. But I believe that footing the bill for your kids actually hurts them more than it helps them. The pain of financial failure My first business sold nylon and Velcro surfer wallets. We worked out licensing deals with famous rock bands and put their logos on the wallets. The sold like hotcakes and the company grew very quickly. But I made a huge mistake. My attorney told me that I should patent my idea. When I heard that it would cost $10,000 to do so, I said no way. Soon another company came along and copied my idea, cutting into my market share. On top of that, I had a number of distributors who owed me money but were not paying. Soon my company was in dire straits and I decided to meet with my rich dad. What I hoped to get out of the meeting with rich dad and what I got were two very different things. My hope was that rich dad would show me a path forward to save my business—and maybe even to offer some financial support. Instead, rich dad looked over my financials, stared me in the eyes, and said, “Your company has terminal financial cancer. You have grossly mismanaged this business and it can’t be saved.” In my arrogance, I tried to convince him that he was wrong about my business, but deep down I knew he was right. Eventually I had to liquidate my business. In the process, I went $1 million in debt. The pain of this financial failure was very acute. Digging out of debt Soon after that, I met Kim. I didn’t think this beautiful woman would want to be with a guy whose business just failed and was $1 million in debt, but we fell in love and she stuck with me. Together, we worked hard to build a new business centered around financial education—at times living in our car or on friend’s couches to make ends meet. We both knew we didn’t want to simply go and get a good job. We wanted to build a company and we found our purpose in life. That clarity of vision allowed us to make the many sacrifices we needed in order to achieve our goal. Eventually, Kim and I paid of the $1 million in debt and built a successful business. Along the way we learned invaluable lessons not just about money but also about ourselves. The pain was necessary The easy path for rich dad would have been to placate me, sugar coat his assessment of my business, or even to give me a loan to see if I could turn it around. Any of those options would have done me a huge disservice. Ultimately, it was rich dad’s hard words—and the hard years that came after them—that led to my success later in life. I can confidently say that had it not been for the hard truth that rich dad gave me, I would not be where I am today. The financial pain was necessary for me, and it’s necessary for your kids. How to really help The easy way out for parents is to pay for their kids’ expenses and debt. The hard way forward is to watch them struggle financially while working with them to build their financial intelligence. Rather than foot the bill, I encourage all parents to invest in their children’s financial education. Don’t pay for the debt, but do take them to a seminar that can change their perspective on money and the world. Spend time rather than cash to go over their financial statements and coach them on how to make better financial decisions. And be there when they need a shoulder to cry on. Only by owning their own financial future will our children grow to prosper and thrive in a world where it is increasingly hard to financially survive. Where to start The good news is we have many resources to help you do this. Start with going over the new rules of money: Money is knowledge Learn how to use debt Learn how to control cash flow Prepare for bad times and you will only know good times The need for speed Learn the language of money Life is a team sport; choose your team carefully Since money is worth less and less, learn how to print your own From there, I encourage you to read and study Rich Dad Poor Dad, which has just been released in a new and updated edition, and take the time to play CASHFLOW together, which was created to put the rich dad principles into real world simulation. You can play online for free. Once these foundations of financial intelligence are in place, you can then begin advanced work with a coach, as well as attend specialized workshops and seminars. And best of all, you can formulate a plan to even invest together. Kim and I started the Rich Dad Company many years ago precisely because we want to see you and your kids enjoy the financial success that comes from the lessons handed down to us and learned along the way. Why not start today? To get get assistance for your financial planning for your whole family, please contact Kevin or Thato in our Invest Department, email invest@daberistic.com, tel (011)658-1333 Written by: Robert Kiyosaki Source: Richdad The new vehicle licence regulation specifies that no motor vehicle can be bought or sold with an expired licence disc. This means that, insurers, cannot write a vehicle off if it has an expired licence disc on the write-off date. Please take note of the below process as it will take immediate effect on all write-off claims. What this means for your clients Insurers cannot renew a licence disc on behalf of a client. As a result, as the client you must assist in renewing the licence disc if it has already expired or expires during the claim process. What happens when the licence disc expires after the date of loss? If the licence disc expires after the date of loss, but before the claim is settled,as the client you will will need to renew the licence disc and send proof of renewal to insurer before they settle the claim. Insurer will reimburse the cost of the renewal in the claim settlement amount. What happens if the licence disc expired before the loss date? If the licence disc expired before the claim event, it is the client’s responsibility to renew licence disc. Insurer will settle the claim once the client has sent proof of renewal. To get assistance with a claim, quote as well a reviewing policy schedule for your vehicle, home and business contact Jan in our Short-Term Department; email [email protected] ,tel (011)658 -1333 Source: Discovery insure What is it? A Medical Scheme Fees Tax Credit (also known as an “MTC”) is a rebate which reduces the normal tax a person pays. This rebate is non-refundable and any portion that is not allowed in the current year can’t be carried over to the next year of assessment. It applies for years of assessment starting on or after 1 March 2012 (from the 2013 year of assessment). Who is it for? The MTC effectively replaced part of the tax deduction that was specifically allowed for medical scheme contributions, and applies to fees paid by a taxpayer to a registered medical scheme (or similar registered scheme outside South Africa) for that taxpayer and his or her "dependants" (as defined in the Medical Schemes Act). This MTC seeks to bring about greater fairness and help achieve greater equality in the treatment of medical expenses across all income groups. The MTC is a fixed monthly amount which increases according to the number of dependants: How does it work?
The MTC will effectively impact both the employer and the employee. This credit must be taken into account by the employer when calculating the amount of Employees’ Tax to be deducted from the employees’ remuneration. Individuals who have not had their MTC taken into account by an employer (for example, an individual who is retired and receives a pension; or an individual who is self-employed) can claim the MTC on assessment by submission of an annual income tax return. If you need assistance with getting your medical aid tax certificate please contact Namhla in our Health department, email [email protected] , tel (011)658-1333 Source: Sars Many people believe that only the family breadwinner needs to have life, disability and severe illness cover. This view is fundamentally flawed, a financial planning professional says. Craig Torr, director at Cape Town-based financial planning practice Crue Invest, says that just because the stay-at-home partner does not earn an income does not mean the family would not suffer financial loss if that person were to die or become disabled. “According to our financial planning principles, we believe in preparing a joint financial plan for both spouses – irrespective of who works, who doesn’t, or how much each earns,” Torr says. “Regardless of income, qualification or career, the couple is running a joint household and is jointly responsible for the financial future of the family.” Torr takes as an example a family of four, where the wife is the sole breadwinner and, by mutual agreement, the husband is a stay-at-home father to the couple’s two small children. The natural, and correct, assumption is that the wife would require assurance in the event of her own death or disability, Torr says. If she were to die, she would need her life cover so that her husband could maintain the family’s standard of living , invest for the children’s education and fund his retirement. If she were to become disabled, she would need her disability cover to pay her a monthly income until she reaches retirement age. And if she were to suffer a debilitating illness, she’d probably also require lump-sum severe illness cover to provide capital to cover the additional expenses. “However, many couples fail to ask the question: what would happen to the working partner and children if something happened to the stay-at-home partner – in this case, the father?” Torr says. A host of functions would have to be replaced, he says. The stay-at-home parent’s job description is likely to include performing household chores, grocery shopping, paying and managing domestic workers, lifting children to and from school and extra-murals, liaising with schools and teachers, supervising homework, and preparing meals and school lunches. “The reality is that a full-time father might not earn an income, but he does work. His role is the most important job on Earth,” Torr says. If the husband were to die, questions the breadwinner wife would need to consider are: • Would I have to hire an au pair or a child-minder to take care of the children in the afternoons? • Would I need to hire a tutor to help my children with homework? • What would happen during school holidays? Would the children go into holiday care, or could I rely on other members of the family to look after them? • Would I need to hire a domestic worker (or increase domestic help) to prepare meals ? • Would I consider cutting back on my hours of work in order to spend more time with my children?. • Would I consider having my parents (or in-laws) move in with me to assist with the children? Torr says: “Our society, in general, undervalues the role of the stay-at-home-parent, and this is never more evident than in the field of financial planning. In the words of GK Chesterton, ‘How can it be a small career to tell one’s own children about the universe? How can it be broad to be the same thing to everyone and narrow to be everything to someone? No, a [stay-at-home parent’s] function is laborious, but because it is gigantic, not because it is minute.’” The reality is that the loss of a stay-at-home parent is greater than anyone can quantify, and you need to consider risk cover for that person too, Torr says. Needs-matched cover for stay-at-home parents Schalk Malan, the chief executive of life assurer BrightRock, says although his company is not the only provider to insure stay-at-home parents, its needs-matched approach to life and disability assurance makes it well suited to do so. “With BrightRock’s needs-matched product structure, disability and income protection cover for a stay-at-home parent can be uniquely tailored in terms of cover amounts, premium increases and pay-out structure to meet the family’s household, childcare, healthcare and debt needs. Unique features include the ability to choose between a lump sum and a recurring income at the point of claim, when the family better understands the stay-at-home parent’s prognosis and their financial needs. Families can also buy additional cover or change cover when their needs change, without medical underwriting. “BrightRock will calculate the stay-at-home parent’s ‘income’ at a maximum of half of the working spouse’s income, and maximum rand limits apply. Income-earning clients who choose to become stay-at-home parents, take time off work or take extended maternity leave will keep all their BrightRock cover in force at their existing cover amounts for up to 12 months. In both of these scenarios, clients will continue to have access to the additional features of our product offering, which enables them to change their cover as their needs change. “We believe it is worth protecting income for stay-at-home parents, given the role they play in families’ financial well-being,” Malan says. Request for a quote for your family life cover, please contact Kevin or Thato in our Life Department, email [email protected], tel (011)658-1333 Source: Personal Finance A very interesting question almost every investor asks themselves is: "If I want to invest money, do I need to buy a property, keep my money in the bank to earn fixed interest rates or invest in stocks?" This is a difficult question to answer simply. All of us have an ambition to invest our hard-earned funds as optimally as possible to ensure we maximise returns. This question is particularly important considering that a one or two percent difference in annual returns significantly impacts the longer-term result. A look at the figures To try to answer this question, the figures should be thoroughly investigated. The following table shows the annual average returns of shares (measured by the FTSE / JSE All Share Index), money market yields (SteFI Composite Index) and direct residential real estate (average prices of South Africa). This draws a comparison between the potential returns that an investor in the stock market can earn in a bank account versus direct property. Once the figures are taken into account, it is clear that an investment in equities over the long term provides the highest yield. Also, we saw that direct property prices experienced a boom period during 2002-2007 with an average annual return of 18.2%, and began to show signs of slowing (2008-2016) by delivering an average return of 3.8%.
However, the choice is more complicated than simply considering returns over different time periods. Every South African knows that Cape Town property growth will be more attractive than property yields in smaller towns up-country. So geographical location must be taken into account. If the average annual return of the Eastern Cape (7.8%) is compared with that of the Western Cape (9.3%), it is clear that location plays an important role. This phenomenon is further accentuated with the stagnation of the overall residential property market compared to metropolitan areas, especially Cape Town which still experiences a boom in house prices. The impact of rental income It is also important to understand that the above figures exclude rental income. This component ensures, on average, 5% - 8% additional returns per year in rental yield. The issue of rental yields is more applicable if direct property is bought with cash as opposed to using bank financing. If the rental income is taken into account (at the lower limit of 5%), property falls into the same category of return as equities over the long term (14.65% vs. 14.79%). The choice of investment vehicle will depend on a set of additional factors. These factors are briefly highlighted below. If you would like to invest in a Unit Trust or find out more information, please contact Kevin or Thato, email: [email protected] tel no: (011 658-1333) Written by: Jan Vlok Source: Sanlam The primary objective in investing is to deliver the best risk-adjusted returns possible. Since return and risk are two sides of the same coin, an interrogation of one without a full understanding of the other is meaningless (and dangerous). How does coronation manage risk? Managing risk is not something that you should have to clear at the final hurdle in an investment process. We believe it needs to be woven into the DNA of the process, as we endeavour to do in ours. In the research process: Through a strong valuation discipline (i.e. paying less for assets than they are intrinsically worth) and a long-time horizon (i.e. looking through the cycle). Together, these are a great defence against the risk of getting sucked in at the top of the cycle, when prices are high and the risk of permanent capital loss is pronounced. Click here to Read FAQ. To find out more on the Coronation funds that we recommend, please contact Kevin or Thato, email: [email protected] tel no: (011 658-1333) Source: Coronation |
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January 2025
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