Moves to raise the age of child dependants

An emerging trend among some medical schemes is to increase the age of child dependants beyond the traditional age of 21.

The most significant of these is Fedhealth, which from 2022 will be offering child rates to age 27 for financially dependent children. Similarly, Bestmed will now be offering child rates to age 24, up from the previous age 21, and for registered students to age 26.

“Medical schemes are always trying to stay competitive and retain market share,” explains financial advisor Dawn Ridler. “Increasing the age of ‘students’ who are still financially dependent on their parents is one way they can do this.”

The difference in the premium between an adult dependant and child dependant can mount up to thousands of rands in a year of savings, she points out.

However, she says main members are unlikely to change medical aids to gain a few extra years of cheaper cover for a student because of the onerous restrictions which typically include a three-month general exclusion and a 12-month condition specific exclusion which could put the rest of the family’s medical care at risk.

“Younger individuals often do not need the comprehensive cover required by their parents

unless they have chronic conditions so a cheaper plan without the frills is often enough,” she says.