Focus on AdviceFee

Below is information about AdviceFee+

The AdviceFee+ represents a negotiated fee amount that clients agree upon with their financial adviser for services associated with their membership in the Momentum Medical Scheme. Momentum plays a crucial role in facilitating the collection of this fee from clients and ensuring that it is transferred to the financial adviser as agreed.

AdviceFee for individuals

For individual principal members, the process begins with an agreement on a specific fee amount, which is formalized through the signing of the AdviceFee application form. This applies to both new memberships and existing ones. Members have the option to select a fixed AdviceFee from the following amounts: R59, R111, R147, or R175. Furthermore, they have the opportunity to review this selected amount on an annual basis, allowing for adjustments based on their financial needs or preferences.

AdviceFee for employer groups

When it comes to employer groups, there are two distinct options available for selecting the AdviceFee: mandatory or conditional.

• Mandatory AdviceFee

The mandatory AdviceFee can only be implemented at the employer level. Employer groups have the flexibility to choose from a standard fixed fee of R59, R111, R147, or R175, or they can negotiate a specific amount that applies per member, per group, or per option. For instance, an employer might decide on a fee of R95 applicable to all members enrolled in the Custom Option.

It is important to note that mandatory AdviceFees will only be applied to the options chosen by the employer. For example, if an employer opts for a R95 AdviceFee for the Custom Option, this fee will only be applicable to members enrolled in that particular option. The amounts for the AdviceFee can be reviewed annually, and any standard fees will automatically increase in accordance with the average annual increase of the Momentum Medical Scheme. However, negotiated amounts will not experience automatic increases.

In cases where the company seeks to establish a new AdviceFee or modify an existing one to the mandatory option, the authorized signatory from the company, along with the financial adviser, is required to complete and sign a company application for complementary products form. Individual AdviceFee application forms are not necessary when a company selects the mandatory option. Any changes made by a company regarding the AdviceFee will be applicable to all relevant members of the group. For example, if the group decides to cancel the AdviceFee for employees on the Custom Option, this cancellation will automatically extend to all employees associated with that option. It is also worth mentioning that we cannot backdate any changes made to a mandatory AdviceFee.

• Conditional AdviceFee

The conditional AdviceFee provides the option for payment at either the employer or employee level. This fee is set at a standard fixed amount of R59, R111, R147, or R175 per member, and it will automatically adjust in accordance with the average annual increase of the Momentum Medical Scheme. Similar to the mandatory option, the AdviceFee amounts can be reviewed once a year.

For each new applicant under the conditional AdviceFee, individual AdviceFee application forms must be completed and signed by both the member and the authorized signatory of the company, especially if the employer is responsible for making the contributions.

Billing

It is essential to note that the AdviceFee is billed separately from the contributions made to the Momentum Medical Scheme. This separation ensures clarity in billing and payment processes for members.

Payment

The AdviceFee is due for payment on a monthly basis, in advance, on the first day of each month. Members can choose to pay this fee via debit order or electronic funds transfer (EFT), particularly in cases where employer groups utilize EFT as their payment method for the Momentum Medical Scheme.

Cancellations

The AdviceFee will be canceled upon receiving a request from either the client or the financial adviser. Additionally, if the Momentum Medical Scheme membership is canceled, the AdviceFee will also be terminated. Furthermore, if the AdviceFee remains unpaid for two consecutive months, it will be canceled. In such cases, the client will need to complete a new application to reactivate the AdviceFee.

Change in financial adviser

In the event that individual members or employer group clients decide to change their financial adviser, it is necessary to complete a new AdviceFee application form. If we do not receive this new form, the existing AdviceFee will be canceled automatically.

Members of the Momentum Medical Scheme have the option to utilize additional products offered by Momentum Metropolitan Holdings Limited (Momentum) to enhance their medical aid experience. It is important to understand that Momentum is not a medical scheme; it operates as a separate entity from the Momentum Medical Scheme. The complementary products provided by Momentum do not constitute medical scheme benefits. Therefore, individuals can be members of the Momentum Medical Scheme without being required to take any of the complementary products offered.