There can be no doubt that it will continue to rise in the years to come, and affect decisions regarding our children’s education. Whether it’s the affordability, quality, or the placement– the rising costs has brought about unprecedented changes.
You may find it challenging to set aside money every month to fund the studies of your child, but it will be worth it in the long run, especially in light of the escalating costs of educational expenditures.

Can online education be an affordable alternative?

There has been a surge in interest in online learning due to COVID-19 and concerns over rotational learning. Several prestigious schools now provide online learning, which is much less expensive than in-person education.
In spite of the significant savings on fees offered by online schooling, there is still education inflation every year to contend with.
This is set against the backdrop of rising inflation, as the annual headline inflation rate rose to 5.9% in December 2021 from 5.5% in November 2021. With an annual increase of 6.1%, this is the highest increase since March 2017.
It is important not to let short-term events affect your education investment, as it is a long-term financial goal.

Saving goes a long way

Even if you can currently afford your child’s primary school fees, this doesn’t necessarily mean you will be able to afford high school or university tuition in the future. In general, education costs are higher than the average salary and inflation in general, and you cannot rely solely on your salary to cover them.
For saving for your child’s education, a variety of investment accounts and policies are available, including education policies, unit trusts, and tax-free investment accounts.

Most parents find it difficult to take that first step towards saving for their child’s education. Not everyone knows the type of education they want and what they can afford early on. You’ll have more options later on if you start saving as soon as you can.

To ensure you’re following the right plan with the right tools, align your goals and timelines with your investment decisions.
By discussing your options with a financial adviser, you can learn about the available options, compare costs and forecast returns, and make a confident decision.

The post Why do you need to save for the future of your children’s education first appeared on De Meyer & Sons.

What is an Excess? 

An excess is the first amount payable, which is your responsibility, in the event of thsubmission of a claim. It is the uninsured portion of your loss and is payable regardless of whether or not it was your fault. It serves to deter clients from submitting minor claims and/or fraudulent claims, thus keeping premiums down.

Who is the insured on a Short-Term Policy? 

The Insured is the person named in the Policy Schedule and includes his/her spouse as well as family normally living with him/her and financially dependent on him/her.

What should I do in the unfortunate event of an accident?

The Insured is the person named in the Policy Schedule and includes his/her spouse as well as family normally living with him/her and financially dependent on him/her.

• Call your Emergency Roadside Assistance number or your Financial Adviser to assist you
• Collect the name, address, contact number, identity number, vehicles details (registration, make, and model) of all other parties involved in the collision.
• Take note of the name of the third parties, their insurance broker or insurance company, and policy number.
• Get the names, addresses, and contact numbers of any independent witnesses.
• Sketch the scene of the accident, including landmarks, road signs, street names, and markings.
• Give your name and address, the name and address of your insurance company, and your vehicle registration to the other driver(s) in the accident, if requested.
• Report the accident to the nearest police station (within 24 hours) and, if there is a third party involved, obtain a copy of the police report for recovery purposes.

Can I have a vehicle policy without an excess?

If you are over 55 and have our policy, there is zero basic excess for you and your spouse. Penalty excesses may apply, for example if a younger person was driving.

If you are younger than 55 or over 55 and a younger person is going to drive, you can pay a fair and reasonable monthly charge to waive the excess.

My child has a learner’s licence – is he or she covered to drive my car?

Unless cover has been restricted to “Named Driver” on your policy, your child is covered if they comply with licence regulations and obey the rules of the road. The licence must be current and a fully licenced driver must accompany your child in the car.

The post All you need to know about Motor Vehicle Insurance first appeared on De Meyer & Sons.

An independent medical scheme must be registered with the Council for Medical Schemes. It is a not-for-profit organization, governed by a board of trustees. As a result, the scheme has no shareholders or pay dividends, and its income is derived only from member contributions and investment returns. Scheme reserves are maintained for the safety and benefit of members by pooling all member contributions toward claims and transferring surplus funds, as prescribed by regulations, to Scheme reserves. Therefore, a medical scheme makes no profit.

Schemes exist to provide their members with an equitably and fairly treated benefit plan by pooling all funds and ensuring they are safeguarded to pay claims in accordance with the rules of the scheme.

All medical schemes in South Africa operate in accordance with the Medical Schemes Act 131 of 1998, and are regulated by the Council for Medical Schemes.

What does ‘open medical scheme’ mean?

Often companies administer restricted medical plans for their staff and their families, or people working in a particular industry can join.

A public scheme, on the other hand, is open to the public and anyone over 18 can join, no matter what their medical insurance status is, as long as they can afford to pay the monthly contributions.

Typically, medical schemes can either outsource their administration or manage this themselves, however, the medical scheme environment is complex and requires significant expertise to effectively manage and provide an infrastructure that meets all stakeholders’ needs, while continuing to keep the scheme reasonably priced both now and for the future.

In South Africa, the majority of schemes employ external administration businesses to provide expert services to their members; however, since administrators are permitted to make any profit they please, it is important that both schemes and their administrators share a similar goal – the care of members at an acceptable cost.

What restrictions does legislation impose on a medical scheme?

• Open enrolment:
  All health insurance plans need to accept all applicants and charge them the same amount (per benefit plan), regardless of their age and health status.
• Regulatory reserve requirements:
  Upon acceptance of a new member, a scheme is obliged to hold 25% of a yearly contribution in cash reserves from the day of joining (even before the member has made their first contribution).
• Prescribed Minimum Benefits (PMBs):
  Prescribed Minimum Benefits (PMBs) are the minimum healthcare benefits all medical plans must offer.

The post Medical Schemes and how it works in South Africa first appeared on De Meyer & Sons.