Don’t panic — we’re all in this pandemic together, you just need to plan Coping with a pay cut is as much about managing your emotions as it is about managing your money. You have to get over the anger, hopelessness or denial and get planning. Here’s what you need to do. 1. Rework your budget. A budget is a plan for your money, and if you don’t have one, you have no control over your finances. If you’ve never budgeted, now is the time to start. Your budget doesn’t have to be complicated. In fact, the simpler the better. Begin by listing all your expenses, starting with your fixed expenses, such as your home loan or rent; rates; car repayments; life and other short-term insurance premiums; school fees; and all debit orders for expenses such as a cellphone contracts and any credit agreements, including credit cards. Now list all variable expenses, such as food, electricity and transport costs. A budget balances what you spend against what you earn. If you’re spending more than you earn, you’re living on credit, which is a road to financial ruin. You have to cut your expenses so that you’re living within your means. John Manyike, head of financial education at Old Mutual, says times such as these call for boldness. “You may need to downgrade your car or your house or move your kids from private to public schools,” he says. Be discipled when discriminating between needs and wants, says Dhashni Naidoo, manager of consumer education at FNB. “Needs are for survival and the rest are wants. Reduce your spend on non-essential items such as cellphone costs.” With most of us still under the lockdown, we aren’t spending on eating out, travelling to and from work, or ferrying children to and from school and extramural activities. For many people, cutting these expenses has led to a substantial saving. The same applies to any other regular expenses that may have fallen away, such as a gym membership that has been frozen. Tally up all you’re saving, no matter how small the saving may be, because this can soften the blow of loss of income. Many people who have taken a pay cut have cut back on their school fees accordingly. So, if you’ve taken a 30% pay cut, consider paying 30% less on your school fees for now. 2. Take a payment holiday. If your pay cut is temporary and any of your creditors are offering you a payment holiday, consider taking it. A payment holiday is typically an extension of the term of your credit agreement by three months. It can have the effect of freezing your account for a period, giving you a break from paying for three months, providing you with some relief. Naidoo says that when exercising this option, make sure you understand exactly what the long-term cost implications are. Payment holidays are typically only offered to customers who are up to date on their payments, but some banks are offering them to those who were no more than two months in arrears before February. If you weren’t too far in arrears, make a proposal to your bank, showing that you’re living frugally and are serious about paying as much as you can as soon as you can. If you show goodwill to your creditors, they are more likely to extend goodwill to you. 3. Negotiate with your creditors and insurers. Never just stop making payments. A credit agreement is a contract and failing to pay has consequences from an impaired credit report to judgment being taken against you. A life policy is a contract, too. Both Naidoo and Manyike say that rather than cancelling insurance policies, review your cover and reduce it where possible, so that your premiums are reduced. “You still need life cover for the benefit of your dependents. Your risks are still there. So speak to your financial adviser to find out if your policy comes with premium waivers or if there are features that you can do without,” Manyike advises. 4. Negotiate with your family. Getting the buy-in of your family is crucial when you, as the breadwinner or a contributing member of the family, suffer a pay cut. It is most likely that everyone will have to make sacrifices so the new household budget works. Speaking candidly to the family about money is necessary so that everyone understands the impact of your pay cut, and so that everyone’s expectations are managed. This is especially important if you’re helping support members of your extended family. “Remember, you can’t give what you don’t have,” says Manyike. 5. Try not to lose perspective. As hopeless as things may seem, don’t forget that this will pass. It’s perfectly normal to feel discouraged, but don’t allow yourself to “camp” there. You’re not alone. For now, we all have to get used to living with uncertainty, which means living one day at a time. Try to be upbeat. It’s necessary for your mental health and that of your family. “Our emotional well-being is being tested severely at this time,” says Manyike, adding that everyone needs support they can draw on, whether through spiritual beliefs or family. Also, he says, don’t neglect your hobbies, especially if you could make money out of them. Source: Business Day
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Global markets continued to climb higher in May following a strong rebound in April, as investors reacted positively to the news of many economies reopening following the Covid-19 induced lockdowns. The positive performance generated by most global equity markets came despite concerns around a possible second wave of infections and political tensions between the US and China, initially around Covid-19 and later around Beijing’s treatment of Hong Kong. Economic data continues to show signs of the damage caused by the Covid-19 pandemic, with forecasts indicating that the US economy lost another 8.3 million jobs in May, following the 20.5 million lost in April. This would push the US unemployment rate to close to 20%, after it ended April at a level of 14.7%. South African equities ended the month largely flat, however, there was significant dispersion among the index constituents during the month. Platinum group metals counters (PGM’s) and diversified miners delivered strong performance during the month, however, this was offset by continued weakness in banking and financial counters. Local bonds were the standout performer during the month in terms of local asset classes. Yields continued to fall dramatically during May (moving prices higher), as the asset class delivered its best monthly performance since July 2008. Local listed property continued to struggle during the month as the benefit of lower interest rates appeared to be offset by tenants struggling to deliver on contractual rental obligations. The rand was significantly stronger against most major developed market currencies during the month, recovering some lost ground following significant depreciation since the start of the year. The Governor of the South African Reserve Bank (SARB), Lesetja Kganyago, announced another reduction in the repo rate of 50 basis points during May, bringing the rate to a record low of 3.75%. President Cyril Ramaphosa announced the re-opening of some sectors of the economy under Level 4 lockdown restrictions and also announced that the country will move to Level 3 from the 1 st of June, which will allow many businesses to return to full operation. Local equity sector performance was mixed, with Resources (+5.6%) delivering strong performance, while Industrials (-1.8%) and Financials (-3.2%) fared slightly worse. Most major developed equity markets ended the month higher, as investors welcomed the reopening of many global economies post the lockdowns in countries around the world. The MSCI World Index delivered a return of +4.9% for the month. Emerging market equities managed to deliver positive performance for the month, however, returns were slightly more muted than those in developed equity markets. The MSCI Emerging Markets Index delivered a return of +0.8% for the month. Most major equity markets ended the month with strong returns, with Germany’s FSE DAX (+8.3%), Japan’s Nikkei 225 (+7.5%) and the UK’s FTSE 100 (+1.3%) ending the month higher. China’s Shanghai SE Composite (-1.6%) bucked the global trend, ending the month lower. US equities also ended the month higher, with both the NASDAQ 100 (+6.3%) and the S&P 500 (+4.8%) both delivering strong returns. Impact on client portfolios
Most portfolios ended May with positive returns, largely driven by strong performance from the SA bond market as well as continued strength in global equity markets. Rand strength during the month against major developed market currencies did detract slightly from the positive contribution from global exposures. Income focused investors received decent returns from portfolios during the month, as local bond allocations drove positive performance during May. What is apparent is that despite global economic data showing strain from the impact of the global lockdowns, markets appear to be reacting positively to the gradual opening of industries across the world. The significant amount of monetary and fiscal stimulus announced by governments and central banks has also provided significant support to global markets. We will continue to follow a disciplined valuation driven approach in managing client portfolios, with risk management currently more important than ever given the noisy market environment. Click here to download market performance In South Africa, having a car is a necessity which at the same time brings the risk of a motor accident. And let’s face it – motor accident is the last thing on our mind, hence when we encounter it, we often do not know what to do. The purpose of this article is to share some info on the topic, so that you are better prepared in the event of a motor accident. First and foremost, it is imperative that you remain calm and put safety first. Many people often get out of the car immediately in order to check for damages (or in some cases, argue with the other party), without first checking surroundings. This is very dangerous, particularly on a highway or major roads, hence this must be remembered. If you feel unwell after the incident, limit your movement and wait for paramedics to arrive on the scene. Secondly, you should not admit any liability. This is an accident which no one wanted to happen, so leave the liability matter to the insurer who will represent you in the case. Furthermore, record as much evidence as possible. Fortunately, these days we all have a cell phone, so you can take pictures and record key information such as:
So what should you call the police? If there are no injuries or major blockage of the road, then you don’t have to call the police – you can register the case at the nearest police station within 24 hours. If there are injuries, then the cars can only be moved after police arrives on the scene and takes proper record. In terms of towing, if the car remains drivable, then no towing service is needed. However, if you are worried that driving it may cause further damage (or the car is not drivable at all), then we suggest that you contact your insurer to arrange towing and storage by their appointed service provider to avoid any potential issues. If needed, the police has the right to tow the car for further investigation. Last but not least, remember to inform your insurance advisor after the incident and provide true and accurate information, so that the claim can be processed without delay. If you have any short-term insurance needs, you can contact us on the following channels:
Benefits can become complicated. For your own good, here’s what you should know. Medical schemes undertake liability in return for a premium or contribution. They are required to help their members in obtaining healthcare services and defraying expenditure for such services. The benefits that a scheme may grant must be registered in its rules. Schemes typically cover the following healthcare services:
Common tariff structures
Private health insurance allows people to protect themselves from the potentially extreme costs of medical care if they become ill. It also gives people access to healthcare when they need it. The exclusion list of scheme options (Annexure C of scheme rules) deals with limitations of entitlements. Schemes must ensure that there is good reason for these exclusions and limitations, and that they are not too broadly worded. Otherwise, they may lead to arbitrary or unreasonable denial of care. But why exclusions and limitations? Entitlements in any option are discretionary (optional) or non-discretionary (compulsory). The latter are covered by the prescribed minimum benefits (PMBs). The Regulations in the Medical Schemes Act 131 of 1998 deal with the entitlement to PMBs: they must be paid in full under certain circumstances, such as when the member obtained the service from a designated service provider. The standard of care (and entitlement to it) is determined by protocols based on the principles of evidence-based medicine or, where these do not exist, the protocols of the public sector. Non-PMB conditions and entitlements are dealt with in scheme rules, and limitations and exclusions are applicable to them. Exclusions The following principles should be considered when deciding whether an exclusion is justified or not: best practice, evidence-based healthcare, clinical protocol, cost-effectiveness (affordability), and the laws of the country.Conditions or circumstances that should definitely not be excluded are those that are medically necessary, with little discretion from the member and/or service provider. Put differently, consider whether urgent treatment is needed to prevent death or permanent disability, and whether the attending doctor has some discretion as to the timing of treatment, and whether the treatment should be given at all. It would, for example, be entirely inappropriate to include an exclusion for the treatment of acute appendicitis, whereas an exclusion for cosmetic surgery in the absence of clinical indications would be appropriate. Not forgetting affordability, clinical protocols based on evidence-based medicine should be the bottom line when deciding whether funding is justified or not. Fair exclusion? You decide. Limitations on cover are appropriate where they permit a degree of financial risk management. But they are inappropriate where their application allows for the selective targeting of specific people or vulnerable risk groups. Thus, reasonable financial management should be permitted, but not to the extent that it allows risk selection and unfair discrimination. Limitations should be permitted where they achieve the following:
Limitations are inappropriate where they achieve the following:
Source: Medicalaide.co.za Discovery announced a number of key product enhancements that respond specifically to insurance needs around COVID-19, as well as the results of two critical research papers on COVID-19 in South Africa. Hylton Kallner, Discovery South Africa CEO says, “Our response to the COVID-19 pandemic has been guided by our core purpose of making people healthier. In the context of this pandemic, it is more critical than ever that we work hard every day to support clients with access to healthcare cover and comprehensive financial protection, and that we provide them with the necessary tools to promote behaviour that encourages healthy lifestyle choices.” The Group earlier introduced healthcare cover specific to COVID-19 through the WHO Global Outbreak benefit and tailored Vitality to help encourage people to stay healthy and active at home. In partnership with Vodacom, the Group made online doctor consultations available to South Africans through a virtual healthcare platform that gives free access to reliable information, risk screening and the ability to effectively ‘dial a doctor’ from the safety of their home. Kallner explains, “Discovery has access to one of the largest population data sets on a variety of factors relevant to the COVID-19 experience. Ranging from clinical, to financial and behavioural data, we are in a unique position to understand the long-term impact of COVID-19 in South Africa, and to design the necessary product structures to better support clients.” Together with emerging experience from other parts of the world, Discovery data highlights the importance of regular screening, appropriate testing and understanding and managing an individual’s health risk. This has informed the expansion of new benefits in response to changes brought about by COVID-19. These provide clients with proactive risk monitoring and assistance; providing cover for different severe illness outcomes due to COVID-19; adequate health protection over a longer term; and rewards that adapt to new lifestyles. A new COVID-19 risk assessment tool to be made available to all South Africans “We have undertaken the analysis to create an accessible COVID-19 risk assessment tool, that will be released on the Discovery app and the website helping people to understand their risk for COVID-19, to know their health risks that increase the likelihood of hospitalisation, and access funding for testing and health monitoring for those at a high risk for compilations,” says Kallner. The assessment will look at a member’s risks compared with that of the membership base in an area. “Members will be able to complete the assessment over time and keep track of their history. When testing is recommended, the assessment tool guides them to an online doctor consultation in a network. More than 6 500 members of Discovery Health Medical Scheme (DHMS) have consulted with their doctors online over the past couple of months, helping to contain the spread of the virus,” he says. “What we know now is that high blood pressure, cholesterol, blood glucose and body mass index are leading risk indicators of developing complications. We want to help members on all health plans to understand and manage these factors to mitigate the risk of complications from COVID-19. From June, any result from a Vitality Health Check that places someone at a high risk for complications will trigger a referral for advice through one online doctor or nurse consultation in the network, which the Scheme will fund in full,” says Kallner. In addition to the forthcoming COVID-19 risk assessment tool, other key enhancements announced by the Group include: Discovery Health expands access to fully funded COVID-19 testing and high-risk monitoring The WHO Outbreak benefit, first announced in early March, has been enhanced further to provide comprehensive cover for COVID-19 over the longer term. It now provides cover for two PCR tests for each beneficiary in a year, following screening by a healthcare professional and will be funded from the risk benefit regardless of the result. Healthcare professionals who are members of DHMS, will have cover for four PCR tests in a year. Discovery Health will assist members at higher risk of COVID-19 complications with funded telephonic consultations with a wellness specialist to monitor their current physical and mental wellbeing and make referrals to virtual healthcare services. DHMS will fund a pulse oximeter– used to monitor oxygen saturation from an early stage – for members at high risk of COVID-19 complications. This will be funded in full if obtained from a network provider. Members will also have access to three consultations with a wellness consultant to monitor oxygen and make a referral to a GP when necessary. Employer groups also have access to a variety of benefits that can help to manage COVID19 in the workplace. A comprehensive information hub, management of high-risk employees, contact tracing and access to screening and online doctor consultations are all available to employers through Discovery Healthy Company. Discovery Insure rewards clients for driving less Premium cash back even when driving shorter distances through the Dynamic Distance cash back that rewards low kilometres. Clients can earn up to 25% motor premium cash back every month when they drive between 0km and 249km in a month and they can still earn up to 50% fuel cash back when they drive more. Vitality Drive Active Rewards has been enhanced so that a client’s drive goal each week is based on their driving behaviour and not on the number of kilometres driven. Discovery Vitality tailored for seniors Vitality Health Check tailored for people aged 65 years and older, recommending specific and age-appropriate health screenings, preventive tests and vaccinations, including a risk assessment score for COVID-19. Three clinically validated screening tests help with early detection of age-related risks of hearing loss, visual perception, and balance and leg strength to prevent injuries from falling. The standard set of preventive tests follow, which include blood pressure, blood glucose, cholesterol, weight and smoking status. The acceptable ranges for weight and blood pressure are altered to consider the changes at an older age. Preventive steps include recommended vaccines such as the flu vaccine and the pneumococcal vaccine to prevent pneumonia. Results are summarised in reports and provide targeted health tracking, clinical risk projections and healthcare referrals based on the health assessment. It can be accompanied by a Vitality Functional Assessment which is an eight-part physical assessment to identify the risk of early frailty or disability and offers tailored workout routines to support healthy ageing. Discovery Life enhances Severe Illness Benefit to automatically cover multi-organ complications associated with COVID-19 Clients have full cover for COVID-19 related claims under their Discovery Life cover. A new multi-organ benefit has been included as a category under the Severe Illness Benefit to provide relevant cover for the complications associated with COVID-19. COVID-19 presents varying respiratory, cardiac, renal and liver complications. The multi-organ benefit is a category within the Severe Illness Benefit and complements existing severe illness body systems to provide payments by the level of acute multi-organ failure, resulting in payments of 50% to 100% of the severe illness benefit. Discovery Life is also taking a proactive approach to providing cover and is currently tracking 203 clients who haveCOVID-19 to manage claims from any of their available Life, Severe Illness and Income Continuation Benefits. If you would like more information on any of the products please contact Koketso email: info@daberistic.com tel:(011)658-1333 Source: Discovery |
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January 2025
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