Two weeks ago, being the first Friday of the month, was when our small group of four IFAs meet for our monthly breakfast. One of the guys with us that morning is busy recovering from cancer. I’m using the word ‘recovering’ loosely, because the medical care for him has probably given him another five to eight years to live.
On this particular morning, we all spoke mainly about what he has been through over the past many months. He has experienced something we insure clients for, what some of our clients have endured, whether successfully or not. So we learnt from him, asked question more bluntly than we possibly would of someone else. Because we could with him.
One of the main issues was the financial capability of the person, or family, that was experiencing the situation. We asked him what his medical aid paid, what it didn’t and why it didn’t. What options were there for him. And so on. In the end, we concluded that what we all seemed to need, is three or four or five hundred thousand rand to meet shortfalls for in and out of hospital treatment not covered by medical aid. For him, this was met by a dread disease policy that he had which paid out. He was able to cover all that medical did not. (And spend the change on a new small car.)
How much is enough could be different for different people. It’s not a measurable figure, just a preference. People with larger cash reserves than others don’t need as much, or any insurance. I have R900 000 of dread disease cover. Possibly too much? But then I’ve heard of folk who needed a million Rand to help them through what medical did not cover.