Joining a medical program is a way to prevent debt obligations, according to Karin Mitchellmore, Head of Healthcare Consulting at the consulting firm NMG Benefits. She emphasizes that youth and good health do not guarantee financial security.
Risks of no coverage
An example from an NMG Benefits client is provided who did not have medical insurance and faced a bill of 2.5 million rand after a car accident. Mitchellmore notes that many people postpone getting insurance until they need treatment. In such cases, they face a 12-month waiting period and potential penalties for late clients, leading to permanently higher premiums.
Underestimating risks
The mistake lies in believing that this will never happen, yet accidents occur regardless of financial readiness. According to data, 9,674 road traffic accidents were registered in South Africa in 2025, increasing the probability of injury for drivers, passengers, and pedestrians. For those who cannot afford comprehensive medical care, it is recommended to take out a basic hospital plan and supplement it with gap cover insurance.
Even if a medical program covers procedures and consultations 100% of its rate, specialists are not obliged to adhere to this rate, and their bills can reach 600% of the medical program's rate. This is where gap cover insurance comes into play.
The consumer trap
However, the problem goes beyond healthcare, states Stijn de Witt, Head of Financial Planning at NMG Benefits. He says that society lives in a 'fast food' environment of instant gratification, and the issue is not a lack of money, but often a desire for immediate status rather than long-term financial wisdom.
According to De Witt, this spending trend, based on impulse purchases on credit, regularly leads to debt. He warns that clients often cancel coverage for serious illnesses and disability, as well as car and home insurance, while withdrawing two tranches from their pension savings, ending up in the same financial position at 45 as they were at 25.
Financial security strategy
Financial security begins with prioritizing the budget. You must first secure your needs (medical care, insurance, transport, housing, food, and debt repayment—50% of income after taxes), then your wants (lifestyle and experiences—30%), and only then save for your future self, including emergencies and retirement (the remaining 20%).
Stijn de Witt gives the example of a colleague who realized he didn't need a car. By using his wife's car and traveling via Uber, he saved up to 7,000 rand monthly by foregoing car payments, insurance, and fuel. Over three years, this saving could amount to up to 250,000 rand, which is a comfortable reserve fund, a profitable investment, or a down payment on a home.
Get help early
Many young people never learned budgeting skills because it is not taught in school, and parents rarely discuss finances with children. De Witt notes that there is nothing shameful about this. He advises starting by finding a mentor—someone who is several years ahead, has no personal stake in your situation, but has gone through this journey and can help avoid mistakes. Working with a financial advisor is also useful.
De Witt insists on the importance of conducting research before making any major financial decisions and understanding the total cost of debt before taking out a credit card or short-term loan, pointing out the availability of free educational resources. He concludes that avoiding costs related to health and well-being becomes devastating without proper coverage, and the sooner a person starts, the cheaper the insurance premiums and the higher the potential return.