About the Medical Aid sector in South Africa and what to look for
South Africa has over 40 medical schemes that are open to the public and around 120 private medical schemes totalling around 7 million beneficiaries. The total annual contribution to medical schemes is around R30-billion (according to the Council for Medical Schemes - 2006).
Take into account that South Africa has a population of more than 47 million people! Less than 15% of SA citizens belong to a medical scheme. So the question is, how do you choose a medical scheme or hospital plan, a specific option of the scheme, which benefits to include or exclude? In this ever-changing environment, one needs the services and advice of an independent intermediary.
Someone who doesn't only have the interests of a specific medical scheme at heart, but one who can guide you to ensure your needs is met. An organisation specialising in the healthcare industry should assist you with the following:
- choosing the "most suitable" medical aid option in the market
- investigating a number of medical schemes and options
- providing pro-active advice on your present medical aid
- assist you with claims and query resolution
What to look for in a financial advisor
If you want professional help dealing with your finances, you need to know how to interview potential advisers. Most important, you need to make sure you put any potential hire through these three sectors: Experience, Expenses, and Execution:
Experience
Ideally, an investment adviser should have about 10 years of experience. Experience is key and you will tend to trust someone who has a number of years behind him.
Expenses
The first expense you need to know about is how the adviser is compensated. You shouldn't have to ask; a quality adviser will explain his or her fee structure up front.
Execution
If you're hiring someone to manage your money, be very careful: No reputable adviser will ever ask you to write a check directly to him or her. Your money should be directly deposited at the firm -- a brokerage or fund company -- where your money will be invested.
When you meet with a potential adviser, pay close attention to the questions they ask. This can be hugely telling. If there are joint investments and joint financial decisions to be made, a reputable adviser will insist on interviewing both parties; that's the only way to devise a financial plan that works for both of you.
Even if you think all you need help with is investing, be wary of any adviser who's willing to talk to you just about investing. A good adviser will start by giving you a thorough "workup" to make sure he or she understands your entire financial situation.
Tips for buying life insurance
Figure out your needs
You can use online calculators to get a rough idea of how much money it would take to cover your surviving spouse’s expenses until retirement, and/or your children’s expenses until they reach adulthood or finish college
Get in shape
To improve your risk class, you can take steps such as quitting smoking, losing weight and reducing your cholesterol and blood pressure if they’re high.
Decide how to buy
You can go it alone and buy insurance directly from the company, seek guidance from a fee-only financial planner, buy it through a commission-based financial planner, or buy it through an insurance agent.
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