Fighting the Super C

Feel free to reach out to PSG Wealth Adviser  Elmar Esterhuizen directly.

In this article, I take a holistic look at where financial planning can support you in fighting this disease. The best defence is a combination of a positive attitude, optimal medical care and financial support to ensure that you can focus on your well-being. Consider using a combination of the financial support options outlined below:

First base – Medical aid

Most medical aids offer an oncology benefit in their suite of benefits, where your oncologist will register your treatment plan with your medical aid.  A basic principle is that plans with the most oncology cover, are usually the most expensive. An early diagnosis of a non-invasive type of cancer should be effectively covered by most medical aids. Advanced diagnoses require more comprehensive cover in the form of Oncology Innovation Benefits, which are only offered on the top plans.

Members on these comprehensive plans will have access to a defined list of cutting-edge, high-cost cancer medicines and breakthrough technologies designed to treat specific types of cancer.

However, there is no need to feel anxious if you are not on one of these top plans.  Once you are diagnosed with cancer, the general approach is to consider upgrading to a comprehensive plan. At PSG Wealth Old Oak, we can serve as your medical aid adviser and guide you through this advice process.

Do make full use of your scheme’s screening and preventative benefits (offered by most schemes) where your medical aid covers certain tests annually, designed to support early detection, so that medical conditions can be identified and treated timeously – often before symptoms even start. This gives you the best chance of preventing cancer and ensuring positive long-term outcomes. Typical tests focused on cancer prevention include:

• Breast cancer screening
• Pap smear
• Prostate-Specific Antigen (PSA) test
• Bowel screening test

Second base – Gap Cover

The basic principle applied by any gap cover provider is to fund any shortfall and co-payments, over and above the amount covered by your medical aid – for example, the remaining costs when your medical aid plan’s oncology benefit limit has been reached. Depending on the plan, an additional amount of about R220 000 per member per year can be utilised for oncology costs. This amount will cover shortfalls when healthcare providers charge more than the amount your medical aid’s oncology benefit pays for in- or out-of-hospital cancer treatment.

Please review your gap cover provider’s preventative care benefits, which typically pay directly for certain tests, rather than being funded from your pocket or medical savings account, such as:

• Bone density scans
• Full blood counts
• Mammograms and breast sonars
• Prostate-Specific Antigen (PSA) test
• Testicular screenings

Some of the Rolls-Royce gap cover providers offer a First-Time Cancer Diagnosis Benefit, which pays out a lump sum upon diagnosis of cancer, provided specific criteria are met. This benefit can be especially valuable at the start of your cancer treatment plan.

Third base – Critical Illness Cover 

Critical illness cover can be linked to your personal risk benefits with your insurer, or it can form part of your group risk benefits, if you belong to a group risk fund via your employer. This benefit pays out a severity-based critical illness lump sum upon diagnosis, if the insured life meets the requirements of one of the defined critical illnesses, like cancer.

Momentum Life’s latest claims statistics reveal that cancer claims account for 45% of all critical illness claims and is by far the biggest cause of critical illness claims. Cardiovascular conditions are in second place with 22%, and 10% relates to nervous system claims. These facts are supported across the risk benefit industry.

An interesting gender split is provided below:

Source: Momentum life insurance claim statistics, 2024

Speak to your financial adviser, who can help ensure that you are adequately and effectively covered:

• New-generation benefits, automatically include critical illness cover for children.
• Discuss the implications of ancillary or stand-alone critical illness benefits.
• Automatic reinstatement option will ensure that cover will be reinstated after a successful claim.
• Event Enhancer benefits may be added, increasing the payout percentages.

Fourth base  – Terminal Illness Benefit

This benefit, included as part of most death benefits, is often overlooked or forgotten. It is available free of charge with most providers and allows policyholders to claim a part or all of the death benefit amount if the insured life becomes terminally ill. The Terminal Illness Benefit is only available under a Death Benefit.

A terminal illness is a medical condition that, with reasonable certainty, in the opinion of the Insurer's Medical Officer, will result in the death of the insured life within 12 months of the date on which they receive medical evidence to that effect.

A successful payout will ensure that the insured can wrap up their financial affairs and ensure that their family will be in the best financial position.

Fifth base – Discretionary investments

Life is priceless, and discretionary investments can play a significant role in managing the financial burden of fighting cancer. Cancer treatment is often expensive and having access to funds can provide flexibility and financial resilience during a medical crisis.  Discretionary investments can provide liquidity, reduce financial stress, preserve core assets, enable specialised care and support long-term financial recovery.

To conclude on a more positive note, our aim at PSG Wealth Old Oak is to ensure you feel supported, informed and cared for throughout your treatment journey. We have the resources to holistically assist you on the financial side of any C-fight. Let us help you ensure that your financial well-being is protected while you focus on your health.