Lifestyle and Tech – 5th February 2025
As a financial planner, you are a trusted advisor in helping your clients achieve their financial goals and safeguard their financial wellbeing. Having a structured plan in place for them covering investments, retirement planning, and risk management is vital, and medical aid forms a critical part of this in the South African landscape. However, medical aid is simply no longer enough on its own to provide comprehensive protection against unanticipated out-of-pocket medical expenses. Medical expense shortfalls are becoming increasingly common, and they can be significant. Over the course of a lifetime, these events have the potential to derail financial plans and future security. Gap cover provides protection against these shortfalls, making it an essential component in an inclusive financial planning strategy.
Shortfalls add up
Unanticipated medical expenses can derail even the most meticulously structured financial plans, and shortfalls, co-payments, and sub-limits are increasingly common, even on comprehensive medical aid plan options. This can result in out-of-pocket medical expenses of potentially tens of thousands of Rands for a single event, but these are rarely isolated incidents. Often, these single events can lead to a cascade of additional claims. Over a lifetime, these add up to significant amounts of money.
At Turnberry, we have seen lifetime claims of over half a million Rand for a single client – R529 598,61 to be precise. We also have lifetime claims totals of R450 224,52, R437 464,33, R398 585,02, and R395 882,08, and these are only the top five. These are sums of money that could potentially force clients to make difficult, short-term financial decisions that can disrupt their overall strategy. Whether it’s dipping into retirement savings, taking on debt, or even delaying important life goals such as education or homeownership, the ripple effects of medical expense shortfalls can be profound.
Safeguarding your clients’ financial future
Financial advisors have a duty to ensure that their clients’ financial health remains intact, regardless of the challenges they face. When crafting a financial plan, it is essential to consider both their current and future financial landscape. Medical aid remains a crucial component, but it often falls short in covering the full spectrum of medical costs. This is where gap cover becomes an invaluable addition to a comprehensive financial plan.
Gap cover is a cost-effective way for brokers to protect their clients’ financial strategy, ensuring that they can access the healthcare they need without being guided by financial constraints and that they will not have to tap into their long-term savings or retirement funds to cover unexpected medical expenses. Incorporating gap cover into clients’ financial plans not only helps to protect their finances but also to preserve their peace of mind and the integrity of the bigger picture.
It is important to remember that medical aid plans change every year, and the offerings from gap providers change in tandem to align and deliver effective cover. It is crucial to stay informed about these changes to provide the best possible advice to your clients and to understand the importance of gap cover in comprehensive financial planning. Gap cover is more than just an add-on to medical aid; it is a strategic safeguard that protects your clients from the financial fallout of unanticipated medical expenses. Gap cover serves as a vital piece of risk management, offering a buffer against the uncertainties of medical expenses and ensuring that your clients’ financial plans remain on track.
Tony Singleton – CEO Turnberry Management Risk Solutions
https://getcovered.turnberry.co.za/app/1
What is Gap Cover?
https://getcovered.turnberry.co.za/app/1
Client Testimonials
I first learnt about Turnberry when my 1st born needed to get his own medical, and because medical schemes are so expensive, I had to take a plan which we could afford. I took out a Turnberry policy for him and when he was in a serious accident, we could not afford the cost of the helicopter which needed to fly him to Pretoria but Turnberry paid the expenses. That was when I decided to take out a Turnberry policy for myself as well. Because of your excellent services I have already promoted your product to all my friends and lot of them have also signed up with Turnberry. Thank you for your excellent service. I do not think that anyone with any medical scheme can be without your product. Lena Ras
If it wasn’t for gap cover I would have had enormous medical expenses. I have had to claim twice in one year. Don’t think about it just do it! It’s the right thing to do. One never knows when you might need the gap cover. I broke my foot just before lockdown due to a brick that was left on a pavement after someone had a motor vehicle accident and they kept the robot upright with the bricks. Whomever did that left some of the bricks on the pavement and at 5h00 in the morning I didn’t see the bricks… Needless to say I ran into the brick and that’s how I broke my foot. Unexpected medical disbursements which I did not budget for and already had to undergo two operations. I have had many expenses and I can truly recommend gap cover. I would recommend Turnberry Gap Cover and have already done so amongst my colleagues at the office. I rate their services as – Excellent! Louna van Tonder