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Home Companies Finance

Things every woman should know about risk cover

by editor
August 7, 2023
in Finance
6
A A

According to World Health Organisation, the life expectancy for men increased to just over 60 years, and for women, to just over 68 years.

While there are many advantages to having an extra few years, the reality is that we also need to think about how we are providing for those extra years.

When it comes to retirement, disability or illness, those extra years can be filled with an unthinkable amount of financial stress. This, paired with the fact that society is still facing pay gap inequalities, is perhaps one of the most important reasons why women should consider risk cover, to ensure that they are financially confident in their later years.

What women should look at

Death 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.

Disability and income protection cover, which pays out if you are unable to work, is important for anyone who is employed, including single women without any dependants.

Dread Disease cover is important for females in general, to protect against the financial implications of being diagnosed with a serious illness like breast cancer.

These are just a few types of cover to be considered. A financial adviser can help you draw up a holistic financial plan to cater for your specific needs. 

But what if money is tight?

While it is difficult to prioritise risk cover when money is tight, it is important to remember that financial problems will be far greater if you lose your ability to earn an income. Ask yourself some ‘what if’ questions. Consider a scenario where the loss of income is temporary, like a few weeks or months, but also consider a scenario of permanent disability.

Then sit down with your monthly budget to see if there are any non-essential outflows that can rather be redirected to a life insurance premium. If you cannot fully cover your risk needs, try at least to cover as much as you can – some cover is always better than no cover.

*Wendy Naruses is Marketing and Communications Manager: Distribution at Sanlam Namibia

 

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