Insurance solutions women need to mitigate the ‘what-ifs’

Want to get more women to start their own businesses

While the role of women in society continues to evolve, so does the need for them to be exposed to financial planning resources that will allow them to fend for and protect their families accordingly. 

Women are forecast to live longer, according to the World Health Organisation. The life expectancy for men increased to just over 60 years, and over 68 years for women. While the extra number of years is great for the women and their loved ones, it also brings about the reality that one needs to consider how they live and provide for those extra years.

“While earning and being financially independent is indispensable for today’s working women, investing in insurance, managing their finances, securing their life and health, and providing a financial cushion even after retirement is even more important. Hard-earned money should also be saved well for wealth growth and reaching financial goals”, says Hilda Nsibande, Business development head for FNB Insure.

She adds that, “If you have loved ones who count on you for financial support, ensure that your insurance cover is a priority to protect yourself and your family should the unfortunate happen.”

“Women are also increasingly assuming the role of steering the course of their families’ financial futures, as evidenced in Stats SA’s General Household Survey that found that nearly 40% of South African households are financially led by women. “

Ester Ochse, Product Head, FNB Integrated Advice added, “There are certain factors that women need to consider regarding their finances, such as living longer than men and taking care of their extended family.

When it comes to protecting loved ones, things like life cover or funeral cover and having a will in place should be considered. Although more women tend to take up life and funeral cover as opposed to men, the question always is, is the cover enough? That is where you will need to get advice to guide you in determining the right amount of cover required for your specific circumstances.”

FNB Insure provides an overview of some of the key insurance cover for potential financial:

  • Protect your ability to service your debt – Credit life policies are often included with home loans, car loans and other credit agreements to cover what you owe the credit provider if you cannot meet your repayments because of disability or death. If you have debt such as a short-term loan, credit card or even car finance, there is a good chance that you have credit insurance. In many cases, the credit insurance will provide cover for retrenchment and depending on your insurance, it may cover between 6 and 12 months of your credit instalments.
  • Protect your income and ability to earn – One’s most valuable asset is their ability to earn an income, and thus it’s of great importance to protect that income or ability to earn as a breadwinner in your home.  Income Protect benefit pays out a monthly income (partial or full) should you become disabled or severely impaired.  In the event of a retrenchment, the insurance pays up to 70% of your taxable salary, depending on your tax bracket for up to six months. The idea is that retrenchment insurance payments over six months will allow you to meet your financial commitments until you find a new source of income, such as another job or starting a business.
  • Protect your assets – With a comprehensive Car Insurance policy, you’re covered from incidents as little as a minor scratch, to a more serious accident or your car being written off, stolen or hijacked. You can also benefit from roadside, emergency medical assistance and trauma counselling. In addition, the home contents cover provides comprehensive cover for the items in one’s home tailored to their needs. For peace of mind when they leave home, they can easily add a Portable Possessions Cover for the items they take with them.
  • Protect your health – Your health is your wealth, and the below health related insurance plans are absolutely critical to have:
  • Health cash plan: Covers your daily expenses and ensures your loved ones are well taken care of when you are hospitalised.
  • Gap Cover: covers medical expenses when medical aid is not enough.
  • Critical illness covers as a rider benefit: Critical Illness Cover protects you and your family against common and serious injuries and illness, allowing you to focus on your recovery – like the angle on breast cancer.
  • Disability cover as a rider benefit: Disability cover protects you, your family and business by paying a lump sum should you become permanently disabled.
  • Protect your life – Life cover is important for anyone with dependents. It is especially important for women who are sole breadwinners, like single mothers, but also for dual-income households where the family relies on both incomes. In addition, a funeral cover is equally important for breadwinners, who have their family members covered, to manage funeral plans.

“Contact your adviser, who will guide you through the decisions you have to make in the wake of your retrenchment. Ensure that the adviser you choose to work with has a contextual understanding of your life stage and has your best interests at heart.

“Your adviser will be able to help you make the best decisions regarding your severance package, retirement fund benefits, group life cover and medical aid,” concluded Nsibande.

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest