Understand how excesses and co-payments work

Most funds offer hospital products with either excesses or co-payments (excesses are the most common). A hospital policy with an excess or co-payment will have a lower premium than one that does not have an excess or co-payment applied (as long as the policy provides the same level of cover).
Co-payments will either be limited to the number of days a contribution is required or will be limited to a maximum amount per admission. There will often be a yearly limit placed on excesses and co-payments as well.
If you’re healthy and unlikely to require hospital treatment, higher excesses can significantly reduce your premium. However, if you know you’ll need hospital treatment, it would be wise to weigh up the amount you’ll need to contribute towards your hospital treatment against the cost savings of choosing a higher excess.

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