South African Gap Cover – ‘The Upside to a Downgrade’

The term ‘downgrade’ rarely has a positive connotation. The end result often includes getting ‘less than’ or ‘settling for second best.’ At one level this is a relative discussion, depending where on the economic ladder you might find yourself. But on another level, this is a pragmatic discussion – especially when it comes to priorities and seasons of life. No matter the circumstances, when it comes to healthcare, it is about saving money. That is the upside to having South African Gap Cover when you might need to downgrade your Medical Aid option.

South African Gap Cover is a fantastic medical insurance invention. Because of the ever-increasing demand for quality healthcare in SA, the cost of medical services remains high and continue to soar. The current cost of living is increasing beyond our pockets and we are living in an unpredictable and volatile economic climate. That is the stark reality. So you ask yourself, ‘Where can I be financially savvy and wisely cut corners?’

Downgrading your Medical Aid option might be a necessary consideration when you take into account the large chunk of your salary which goes towards these monthly premiums. Does that mean your family will be getting ‘second best?’ Not necessarily, and certainly not if you counteract this with comprehensive Gap Cover.

Consider this scenario:

You drive to work daily in your executive sedan, which you worked hard for. Now all your kids are in school and the fees are high. Fuel and car maintenance costs are on the rise and basic groceries cost more and more each month.

What do you do? Pulling your kids out of school is not a viable option (no matter what they may say). Your family still needs to eat. So perhaps downgrading your car to a smaller, more economical and less expensive model, or even a motorbike, might be the sacrifice you need to make for now? (Who knows, when the kids leave home, the  convertible awaits.) This is an obvious and wise choice, which benefits the entire family and you can still get comfortably to work or from A to B.

Now, add your Medical Aid scheme and its ever-increasing tariffs into the mix. That monthly figure on your personal budget is exorbitant. The obvious decision is to downgrade to a lower scheme. This is not the end of the world.

Consider this solution:

Gap Cover is the upside to this downgrade. And more money in your pocket does not necessarily mean less quality healthcare.

Downgrading to a lower Medical Aid option is likely to mean an increase in shortfalls between what a lower end scheme pays for and what the actual costs are. It is also likely that certain procedures are no longer covered and specific benefits might need to be forfeited. Not to worry. Gap Cover can step in and make the transition as painless as possible.

By downgrading from your current Medical Aid tier, you can make up for what you are losing by taking out an affordable and comprehensive Gap Cover policy. You could possibly save up to R1000 a month. For around R200 a month, you can access a Gap Cover option that will be the buffer. That extra R800 a month in your pocket is sensible and savvy financial decision making, and definitely the silver lining to a downgrade.

Contact Day1 Health

If you find yourself in a situation where downgrading your Medical Aid makes financial sense, visit us at Day1 Health where you can find out more about our Gap Wise Gap Cover option. For more information on the value, advantages, benefits and upside of South African Gap Cover, please refer to our blogs. Contact us today to request a quote.

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