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Category:
Insurance
News /
Life
Insurance /
Liberty
Life / June 2007
Liberty lifts the lid on medical cover
The most important issue to be tackled upfront is a client’s lack of
understanding
Medical cover is an integral part of a client’s insurance portfolio.
Unfortunately many people still opt for the incorrect option, due to
a lack of knowledge and understanding.
In
light of this, Liberty Life Medical Scheme asked Hereford Financial
Services CEO Michael Dundulakis and colleague Andrew Penney to
reveal the key factors that help to create a win-win situation for
both financial adviser and client when it comes to the purchase of a
medical cover:
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The most important issue to be tackled upfront is a client’s
lack of understanding of how medical aids are structured and
which benefits are paid from a particular plan. Consultants must
therefore take the time to help a client understand how their
plan operates.
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Use the statutory disclosures and FAIS paperwork to establish
exactly what a client expects from the consultant. This will
establish the client’s financial position and budget, which will
help in selecting a plan further on down the line.
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What is the client’s current situation regarding medical aid? Do
they have a plan? Are they happy with it? If not, what are the
problems causing them to be dissatisfied? Does their employer
subsidise their premiums? If they have medical aid, establish
which provider it’s with and the name of the client’s current
plan.
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When making comparisons the consultant should establish whether
the client wants a new generation structure (Hospital plus
savings account) or a more traditional plan (pooled risk plan
with no individual savings accounts). Also check what kind of a
structure the client is currently on.
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What role does a client’s employer currently play? Before
suggestions to the client are made, check with the HR department
as to what the company’s policy is regarding medical aid schemes
and plan choice. Going forward, this may help the consultant to
get business from the group as a whole.
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Important areas to consider are the level of cover in-hospital
(i.e. medical aid rates vs. private rates); limits in and out of
hospital; which procedures are covered in a day clinic setting;
which chronic conditions are covered; will the plan’s premiums
change in the event of claiming for chronic medication; are
there co-payments for procedures; what levels of savings does
the plan have for day-to-day expenses; how often are claims
paid; how are claims submitted?
Penney adds: “I have also come to understand that many people are
disgruntled with the current range of healthcare offerings and this
means they are looking closely at more cost-effective options, which
also offer increased benefits.”
“Fortunately, the Liberty Medical Scheme fits the bill on both
accounts since it offers benefits that are easy to understand, as
well as a host of innovative features such as a Trauma benefit -
currently the only one of its kind in the country.”
Source: ITInews – Insurance
Times and Investments Online
www.itinews.co.za
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