The medical aid lockdown challenge (#194)

Last week we challenged you to take a closer look at your insurance cover. The challenge was an eye-opener for me. I wrote an article about it here.

This week it's time to look at your medical aid. Since many of our incomes are affected by the lockdown, you might be looking at a cheaper medical aid plan. You might be wondering if the one you have is any good. Perhaps a global health crisis finally scared you into getting medical aid if you don't already have one. 

The trouble with making choices about medical aid is the medical aid industry. If you've ever tried to compare two medical schemes or even two plans within the same medical scheme, you know what we mean.

This week, we hope to help you make sense of this mess. Here's a summary of the big things you need to pay attention to:

• The percentage rate cover.
• Exclusions and sub-limits.
• Whether your particular chronic condition is covered.
• Cover for non-prescribed minimum benefits, like oncology, dialysis and HIV. 

Let us know if you have any mind-bending insights of your own, and remember to catch our live interviews with our community members on the Fat Wallet community group.

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Win of the week: Jennifer

I just want to let you know that Sunday night is the highlight of my weekend because that's when I receive the phone notification that the latest Fat Wallet episode is available. Thank you for continuing to provide a calm perspective and practical advice during these chaotic times.

I hope you and your families are staying safe and healthy. My wife and I are fine, but we have family, friends, and coworkers who are very sick. We have not left our tiny Manhattan apartment since March 13. Fortunately, many restaurants and grocery stores are making deliveries. I count ourselves lucky that we have the option to get food without leaving the safety of our apartment. I have a fear that the next time we go outside, perhaps months from now, the blocks around me will be unrecognizable because so many shops and restaurants will have closed. At night, I look out my windows and see other pondering New Yorkers in high-rises staring out of their windows trying to figure this all out. Sometimes I feel like we make eye contact, but we're so far away that I can't be sure.

Lady Kabelo

Whenever you and Simon talk about medical aid I feel like it's a high-level overview.  But the really difficult thing is the nitty gritty - when looking at plethora of options how do you make sense of it?

Can you and Simon talk about which cover you have and, more importantly, how you landed on that? What did you take into consideration?

At this point, I'm thinking Discovery purely because the brand is familiar. I also have my life insurance with them. And then I'm guessing the more expensive the plan, the more benefits it gives you so pick the most expensive one I can afford. I haven't pulled the trigger yet on this plan because it seems like a very bad way to make the decision.

Save me Kristia - recommend a company and their best plan and put me out of my misery.

Miles

Satrix MSCI and other offshore ETFs and unit trusts are "non accumulating" or "roll-up" funds, so don't pay dividends.

What happens to the dividends?

Am I actually saving on foreign divi tax, but paying more CGT at sale time with these foreign investments? Also, in a TFSA, one pays foreign divi withholding tax.

Hendrik

You caution against ETFs and Investment products with high fees. You mentioned there are living annuity products on the market where the TERs are 0.5% or lower?  

Would you care to elaborate on these please,.., which ones they are? 10X for example indicates a fee of 0.86% and OutVest has got those RA's for 0.40%,.. but no Living Annuity as yet. 

10X's 0.86% TER had been the lowest I could locate thus far…

I am going on Retirement in May of this year at the age of 60. It is crucial to me that I make the right choice of Living Annuity with the best combination of the highest possible return, lowest risk and lowest fees.

Michael

I get offered almost 3x my salary as straight credit on my FNB credit card (which I personally think is nutzzzz!).

I was wondering if I could transfer that full amount to a Tyme bank account and earn 6-9% interest on it for the month and then transfer it back to FNB before the 55 days interest free period is up?

It can't be that simple right? otherwise everyone would be doing it?

Christian

My question is related to a deduction from my SYGWD dividend. 

The transaction breakdown is as follows:

• SYGWD Foreign Dividend 
• Foreign Dividend Tax

And then the weird one:

• SYGWD - Port Costs

I had a look on the internet but cannot find any reference to this cost, would you be able to shed some light on this? Don't know if it matters, but this was in my Share Builder account with FNB.

Bradley

I have a retirement savings product (that I hate) via my employer. I have investment property (rentals): I'm a property guy (long term debt; short term income; expropriation without compensation risk; what could go wrongJ). I have no TFSA yet.

I want to create a R200k fund for high risk, high return investments projects through share trading: "SASOL" to be specific).

1.       What do you think of putting funds aside to just invest in riskier things that have a much higher pay out?
2.       What is the best way to go about buying and selling shares? Will I pay CGT or personal income tax on proceeds?