Popularity of Short Term Health Insurance Growing in SA

Health Insurance growing in South Africa Companies tend to offer hospital cash plans rather than traditional medical aids.

More and more South Africans are turning to short term health insurance in a bid to supplement their needs.

The business development manager for Alexander Forbes, Janine Morrisey said that a growing number of companies are purchasing hospital cash plans for their employees instead of the more traditional medical aids.

According to Morrissey, only 17% of South Africans have medical aid and the majority of these are provided by companies - whether fully or partially.

"While no one knows what the future may bring in terms of a national health plan, right now ordinary South Africans are turning to short term insurance to help them meet their medical needs," she said.

She added that these days, "companies are more likely to offer all staff assistance towards some sort of hospital cash plan rather than a full medical aid package."

Hospital cash plans are more popular, according to Morrisey, because if they are bought for many members, their rates can be negotiated.

In addition, cover for dread disease was also gaining popularity among South Africans.

"These kinds of lower cost products have grown out of the disequilibrium between earnings and medical costs along with the unaffordability of traditional medical aids in South Africa," concluded Morrisey.

Alexander Forbes offers South Africans a wide range of insurance products, ranging from home and motor insurance to life insurance.