Teach kids why medical aid and gap cover matter, how health costs work, and how planning ahead protects your family from expensive surprises
Getting sick or injured is part of life.
Usually, you can take some medicine or stick a plaster over the scratch and go to sleep to feel better in the morning.
But there are times when you get so sick, or so injured, you need to see a doctor, and even be admitted to hospital. And that can get VERY expensive depending on the type of doctor you need to see, how long you need to be in hospital for, and the types of tests, procedures and operations you need to have done.
If we aren't prepared, those costs can cause serious financial damage. In fact, a recent US study found that unexpected medical bills are one of the main causes of bankruptcy.
That’s why something like medical aid and gap cover is an important part of building your holistic financial life. It helps cover those unexpected medical expenses, decreasing how deeply you need to reach into your own pocket to make sure you and your family get healthy.
There are, of course, other medical cover products like hospital plans, illness cover and other products out there, but for today’s edition, we’ll just stick to medical aid and gap cover.
Think of medical aid as "buying peace of mind"
Many people view medical aid as a grudge purchase because you’re paying for something you hope you never use.
But on the journey to being a mini millionaire, it’s just as much about protecting your money as making it.
By cultivating a "Proactive Protector" mindset, you realise that paying a small amount monthly is a smart investment that prevents a single accident from bankrupting your future.
Takeaway: It’s about being "risk-aware" rather than "risk-afraid".
Always check the "Price Tag" of your health.
Get into the habit of asking about costs before a procedure happens.
Doctors often have different rates for private patients (those paying cash) and medical aid rates. There is also a difference between the medical aid rate and how much your medical aid actually covers.
It’s this difference that could be covered by your “Gap Cover”.
By developing the habit of asking for a quote and comparing it to what your coverage allows, you can see exactly where you might have a shortfall, and this goes a long way in preventing "bill shock" later and teaches you to navigate the financial side of the healthcare system like a pro.
Takeaway: Knowing the cost upfront helps you deploy your shield effectively.
Become a "Statement Sniper"
Show your mini millionaire a recent medical claims statement or Dr’s bill. Bonus points if it’s a medical bill for them - nothing like a bit of “look at what healthcare costs” to help them appreciate all that you do for them.
(Seriously, though, the idea here is not to make them worry or feel guilty, but rather help them understand that even healthcare costs money and is something to prioritise.)
It might look like a complicated receipt to them, but it’s actually a map of a financial rescue.
Show them what the doctor charged, what the medical aid paid, and how much the member payment was (the gap). If that last number isn't zero, that’s where Gap Cover would have saved the day!
Seeing these real numbers helps your mini millionaire understand that medical care has a price tag, but having a plan means your family’s savings stay untouched.
Takeaway: Even something like a medical claims statement is a good lesson in financial literacy.
Before becoming a Statement Sniper, every Mini Millionaire must master a super important money skill: telling a need from a want.
While a new pair of cool sneakers is awesome, it’s actually just a want. On the other hand, ensuring you have medical protection like medical aid and gap cover is an important need that ensures your family is covered for any unforeseen medical expenses.
Download this week’s free Needs & Wants resource to help your child categorise their world into what’s a need, and what’s a want. This hands-on activity lets them cut and paste everyday expenses into the right blocks.
