Health
Knee Replacement Surgery: What you need to know!
A knee replacement is a major surgical procedure and understanding how your medical aid plan covers it can help you prepare financially and medically.
Disclaimer: Knee replacements are not automatically a PMB (prescribed minimum benefit) and so it would depend on the type of plan and the benefit structure of your medical aid scheme.
Knee replacement surgery falls under the Hospital Benefit (Major Medical Cover) section of your plan. This typically includes:
- Hospitalisation and theatre fees
- Surgeon and anesthetist costs
- Prosthetic devices (the artificial knee joint) – but could also be limited.
While knee replacement is not automatically classified as a PMB, if the surgery is required due to a PMB-related condition (such as severe osteoarthritis), certain costs may be covered under PMB rules.
Post-surgery physiotherapy and rehabilitation may be covered under Day-to-Day / Out-of-Hospital Benefits, depending on your plan. Some medical aids also provide enhanced cover for prosthetics, though annual limits or co-payments may apply.
Things to be aware of:
- Always obtain approval before undergoing surgery.
- Using doctors and hospitals within your medical aid’s network can reduce or eliminate co-payments.
- Confirm whether your plan has annual limits or co-payments for prosthetic devices.
Knee replacement surgery may be covered under your Hospital Benefit, but rehabilitation, prosthetics, and specialist fees may not be covered, and these could involve additional costs. Reviewing your plan details and securing pre-authorization ensures you are financially prepared and fully covered.
Short Term
Yesterday’s Values Won’t Cover Today’s Losses
One of the most misunderstood principles in insurance is underinsurance and the application of average.
Things to consider to avoid unexpected shortfalls at claims stage:
• Replacement values increase over time, from building costs and materials to gold and jewelry which can be due to transport and import costs, manufacturing costs or a weak Rand.
• Newer models can often be more expensive, yet considered reasonable equivalents to your assets needing to be replaced
• As prices rise, your insured value can fall behind
While insurers are contracted to replace assets on an “old for new” basis, this is only achievable if your cover reflects today’s replacement value—not yesterday’s purchase price.
This is where underinsurance quietly creeps in.
Key Points to Avoid Average Being Applied
- Insurance is designed to replace your assets with modern equivalents, but only in proportion to how accurately you insure them
- Staying adequately insured requires regular reviews of your sum insureds values, especially as technology, prices, and your lifestyle evolve
- Do regular routine inventory checks and update valuations on high-value items (e.g. jewellery) at least every 2 years
- When purchasing new items, ensure your policy is updated to reflect these additions
Average applies to both partial and total losses and insurance companies do not offer second chances at claims stage.
A Simple Rule to Remember: If you insure for less, expect less at claim stage.
Wealth
Stay Alert: Protect Yourself from Online Impersonation Scams
Online impersonation scams are becoming increasingly sophisticated, targeting individuals who may not be vigilant. Criminals often pose as representatives from trusted institutions to pressure people into sharing sensitive information or taking urgent action.
These scams can appear highly credible, as they often mimic familiar institutions and companies. Scammers may contact you through personal messaging platforms such as WhatsApp, request urgent payments or agreements, and even send follow-up messages from supposed “associates” to reinforce legitimacy.
Their strongest weapon is urgency. By creating panic or pressure, scammers increase the likelihood that victims will respond without thinking.
How to Protect Yourself:
- Verify requests through trusted channels. For example, if contacted by your bank, call them back using the official number listed on their website—not the one provided by the scammer.
- Pause before acting. A sense of urgency is a red flag.
- Avoid clicking unexpected links or attachments.
- Check email addresses, phone numbers, and social media accounts carefully.
- Never share sensitive information. Do not disclose banking details, one-time passwords (OTPs), or other confidential data via chat apps or over the phone.
While these precautions may seem obvious, remember that scammers are highly practiced and can be extremely convincing. Staying alert is your best defense.
Tax
Taxes on Investments: What South African Investors Should Know
Investing is a smart way to build wealth, but it’s important to understand how taxes apply to your returns. In South Africa, the main taxes that affect investors are usually capital gains tax (CGT), dividend withholding tax (DWT), and tax on interest income.
When you sell an asset like shares, property, or unit trusts for more than you paid, the profit is subject to CGT. While only a portion of the gain is included in your taxable income, it can still impact your overall tax liability. Holding investments for the long term often helps manage this cost.
Dividends from local and foreign companies are generally subject to a 20% dividends withholding tax. This is deducted before you receive the payout, so it’s important to factor it into your expected returns.
Interest earned from savings accounts, bonds, or money market funds is taxed at your marginal income tax rate. However, individuals benefit from an annual exemption—currently R23,800 for those under 65, and R34,500 for those 65 and older—making interest-bearing investments more attractive within those limits.
Retirement savings vehicles like pension funds, provident funds, and retirement annuities offer significant tax advantages. Contributions may reduce taxable income, and growth inside these funds is tax-free until withdrawal.
In addition, Tax-Free Savings Accounts (TFSAs) allow you to invest up to R46,000 per year (R500,000 lifetime limit) with all growth, interest, and dividends completely tax-free, making them a valuable tool for long-term wealth building.
Making use of the services offered by Multitrust when investing can make a big difference to your overall plan and end result.