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Health waiver pays medical aid when the breadwinner cannot

10 January 2007 Momentum Collective Benefits / Dynamo

Companies are looking for group risk and health insurance solutions that meet the real life needs of their employees particularly during difficult times, which is why Momentum Collective Benefits has just introduced a health premium waiver free of charge on some of its policies.

"Medical aid is one of the most important costs in anyone's budget. If a family member suddenly dies or is disabled it has an immediate impact on finances. That is why we have developed this optional medical aid premium waiver to cover the medical aid contribution costs for when the main breadwinner is no longer able to," explains Momentum Collective Benefits Strategic Marketing Manager, Jay Naidoo.

He says this is an important rider for accredited financial advisors to be aware of as the cost of medical care could have a major impact on companies that have group benefits insurance. If a company selects the Health Waiver option on its group risk cover the cost of an affected members medical aid premiums is covered for up to 24 months - neither the company nor the employee has to meet the expense.

"This is not a long-term solution, but it does provide breathing space during the tough transitional period - between 12 and 24 months - covering the cost of the medical aid premiums. This effectively takes the financial responsibility and burden away from both the employer and the affected employee and their family,"  Naidoo says.
 
He explains how the new Health Waiver works. The Health Waiver is available as an optional rider benefit to the Momentum Collective Benefits Group Life and Income Disability products. Employers may select the option when they sign up for or renew their group benefits.

The Waiver effectively pays medical aid contributions, including the cost of a medical savings account, in the event of the death or disability of a member. It is free for the first 12 months to companies that have selected Momentum Health as their medical aid of choice.

The rider offers a hassle free payment mechanism while the benefits are in force, covering the actual cost - or close to the actual cost for those belonging to medical aids other than Momentum Health - to cover a specific need. If a member dies, a lump sum is paid to the medical aid to cover the dependants' premiums for the selected period - 12 or 24 months. If a member becomes disabled, the benefit (which covers the contributions for the member and his or her dependents) is paid monthly to the employer, who in turn pays the medical aid.

Momentum Collective Benefits 's Health Waiver provides employers with the  flexibility to choose the term of the benefit and the members covered, which allows them to control the price and the amount of benefit they wish to pay for. They may opt for a 24-month period of cover, for which they will pay a fee that is determined by the member profile. If the company is with another medical aid, they can still benefit from the Health Waiver at a cost relevant to their member profile. It is priced along with group risk benefit insurance cover at standard rates.

More good news is due to the introduction of new legislation in March 2006 beneficiaries are now able to claim the medical aid premiums on both lump sum and annuity benefits as deductible medical expenses in their annual tax returns.

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