Different Types of Health Insurance

Health insurance is getting more and more popular these days. The main reason for this is because hospital costs and the cost of medical procedures are prohibitive. People never plan to end up in the hospital or get an operation; these things tend to happen unexpectedly. It is therefore vital to have some insurance policy in the case of these events.

Here we will describe the different types of health insurance options available.

Medical Aid Policies

These are referred to as medical insurance or medical aid schemes. This is the most comprehensive type of cover one can get. It usually consists of a savings plan and a hospital plan. The savings plan pays for GP visits, medication costs, and all other out-of-hospital costs. The hospital plan covers all in-hospital expenses like surgeries, maternity or treatment of critical illnesses.

Hospital Plans

As mentioned above, a hospital plan covers all expenses of events that take place in the hospital. It can be seen as a medical aid plan without the savings plan (read more here).

Health Insurance

Until 1 April 2017, this was referred to as a hospital cash back plan. Many people confused it with a regular hospital plan; therefore the name has changed to health insurance. The cost is much lower than that of a hospital plan, but the cover works entirely different.

This plan covers you on a day-to-day basis when you are hospitalized. It pays out a cash amount for every day you are in the hospital, starting from day 3 (depending on your insurer). This cash amount can be used to cover your hospital bills or even buy groceries with. It pays you because you are not able to go to work to generate an income.

Gap Cover

With many medical schemes and hospital plans, there is a co-payment or medical shortfall amount that the insurer does not cover. This amount should be paid out of the policyholder’s pocket. Gap cover insures you in this event to make sure there are no unexpected costs you have to pay out of your pocket.

As you can see, there are different types of medical coverage you can get. Judging from the kind of cover you get, it is essential to know why it is not always the best idea to go for the cheapest policy. One thing is for sure though; it is critical to have some type of medical cover. Accidents do happen, and there may come a time where you will need to have an unexpected medical procedure. There are cases where medical costs have left people bankrupt. Do not let this happen to you, get covered and pay the extra monthly expenses, one day you will be happy you did.

How do you find the right type of cover?

First of all, you should do a bit of research and decide what type of cover it is you need. Several medical aid websites have an option to complete a short form to get a free call back from an expert. This person will be able to explain to you precisely what it is you need. They will also give you quotations to see which insurance company can give you the lowest premiums, while still providing adequate cover. It is beneficial to speak to professionals like these, as you do not have to waste time doing your research.

We hope you have learned a lot from this article, all of the best in your hunt for the right medical cover!

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