SHORT-TERM PRODUCTS

1. Ancillary products, available only to medical scheme members who want to supplement their benefits. They include gap cover, dental cover and top-up cover. Daniël Erasmus from Insight Actuaries and Consultants said his research has found that 24 companies with 93 products have written about 500 000 policies. 2. Hospital cash plans, which pay cash to policyholders when they are admitted to hospital. The premiums depend on the level of cover, the policyholder’s age and the benefit level. The most common premium is between R120 and R150 a month. Most products require the policyholder to spend three or more days in hospital before they will pay out. According to Erasmus, there are about 23 different hospital cash plan products. 3. Care-based cover. Erasmus says there are about 40 products that offer care-based insurance cover. These can be categorised into:

◆ Hospital-only cover, which provides for major medical benefits only. Cover for hospitalisation is normally defined according to a set monetary schedule of limits. The actual value of the benefits depends on the reason for hospitalisation (illness or accident) and period of hospitalisation. Monthly premiums range from R106 to R499.

◆ Day-to-day cover: day-to-day, or primary care, policies generally pay for general practitioner consultations via a network of health professionals. The premiums are between R300 and R400 a month.

◆ Day-to-day cover and limited hospitalisation, which provides a combination of primary care and limited hospitalisation benefits. The premiums range from R400 to R500 a month.

◆ Day-to-day cover and hospitalisation, which provides a combination of primary care and hospitalisation benefits. These products are relatively expensive; the average contribution is nearly R700 a month.