Medical Insurance is a long term insurance product, governed by the Financial Services Act. The client takes out insurance against the risk of incurring certain medical expenses. It’s important to note that medical insurance covers health events at fixed or very tightly defined amounts and it is paid to the client directly and not to the medical service provider.

One should be mindful of the difference between a medical aid and medical insurance product such as a hospital insurance policy. The initial monthly contribution for hospital insurance could seem to be a lot more cost effective than a medical scheme membership, but hospital insurance cover is fixed pay-outs and will apply cover as set out in the specific policy schedule. It is very important to understand what exactly you are covered for should an unforeseen health incident occur.