Bridging the financial protection gap for South African women

There has been significant progress in advancing women in our country, across many spheres. In 2024, almost half of the South African Members of Parliament, judges and magistrates are women. In 2022, women owned or co-owned more than half of South Africa's residential properties.

Despite these positive trends, there remains room for improvement in a critical area - women's access to financial products and services, like life insurance.

Women typically have R1.3 million less disability cover than what they need

According to the Association of Savings and Investment South Africa's 2022 report, a woman who earns a salary typically needs disability cover of about R2.4 million. However, on average, these women only have disability cover of R1.1 million. This leaves a disability insurance gap of R1.3 million for the average woman in our workforce. Similarly, women who earn a salary typically have about R1 million less death cover in place than what they need.

Many women have a major gap between how much insurance cover they actually have versus how much insurance cover they need to financially protect themselves and the people who depend on them.

"Life insurance provides financial protection against unexpected life-changing events," explains Kashmeera Kanji, Head of Market Analytics and R&D at Discovery Life. "Adequate cover, whether it's for death, disability, illness or loss of income, means that women can financially protect themselves and those who depend on them against life-changing events or unexpected financial shocks."

According to Lightstone data, many women residential property owners in South Africa are single. "But if something happens to the homeowner, resulting in them becoming severely ill or disabled and unable to work to earn an income, this could impact their ability to keep up with the monthly mortgage payments," adds Kanji.

"Also, being self-employed is hugely empowering. But it also means that there is less of a financial safety net should the business owner not be able to continue running their business. This could be for many reasons; common amongst them are illnesses, disabilities or even death of a business owner," explains Kanji. "An entire business and it's social and economic impact could be jeopardised where a business owner is unable to continue their role", she adds.

Discovery Life's 2023 Annual Claims Experience showed that cancer has a major impact on women:

• 53% of Discovery Life's Severe Illness Benefit claims for women were for cancer.*
• Discovery Life also found that 43% of women's Severe Illness Benefit cancer claims were for breast cancer.*

Kanji explains that Discovery Life's LifeTime Severe Illness Benefit pays out a lump sum that caters for the full spectrum of financial implications when diagnosed with a severe illness. "For many conditions, the cost of the treatment, whilst definitely the primary consideration, is not the only financial impact. Costs to adapt one's lifestyle or afford care for yourself or in the example of mothers, your children, during these times should also be considered. Then there are the costs of replacing any lost income during this period."

"Discovery Life's LifeTime Severe Illness Benefit also includes automatic cover for your children and parents through the Automatic Child Severe Illness and ParentCare Benefits, respectively," says Kanji. This allows a parent the flexibility to take the time off work to focus on their family during these very trying times. This also helps families afford the added costs that come with maintaining a certain quality of life.

Women typically have a longer life expectancy than men

Life expectancy is increasing, which means that people are living longer. For women, this is a double-edged sword, with women typically living longer than men. This deepens the effect of earning less than their male counterparts, all while having to save for a potentially longer retirement. This shows the necessity of insuring one's income against the possibility of being unable to earn one due to illness or disability. It also shows the importance of finding creative ways to maximise the nest egg that you build towards retirement.

Kanji explains, "With Discovery Life's Cash Conversion benefit**, clients can supplement their retirement funding through managing their health and wellness. Clients can get up to 100% of the value of their Life Fund, paid out in 10 equal yearly instalments from age 65, without reducing their cover." Women, and men alike, could benefit significantly from turning their engagement in health and wellness into a significant health asset.

What are women like you claiming for?

Want to better understand the health and life insurance gaps that women like you face, so you can make informed decisions? Go to Discovery Life's claims calculator and empower yourself with key insights to guide your financial planning decisions.

You can follow this link to learn more about Discovery Life's comprehensive suite of Life Plans with award-winning*** benefits, or speak to your financial adviser.