Recessionary job losses should be a cue to women to take out their own life insurance

520 here, 850 there and 1 500 elsewhere – everyday there’s news of more job cuts as the recession takes hold and companies look to curb costs. In the first quarter of 2009 alone, the South African economy shrunk by 6.4% and over 200 000 jobs were lost.

“The recession is impacting heavily on employment in South Africa and as job creation slows and the rate of unemployment rises, so the need for life insurance becomes more and more apparent; particularly amongst women who are playing an increasingly significant role in keeping their families afloat financially,” says Robyn Farrell, managing director of 1st for Women Insurance Brokers and spokesperson for 1st for Women life insurance.

She explains: “Nowadays, many families rely solely on the income generated by the woman of the house while duel-earner families, which are becoming a major and growing segment of the country’s labour force, rely on the income of both parents in order to make ends meet.

“Yet, while many South African women serve as the primary breadwinner or as an equal contributor to the household’s financial upkeep, most women feel that they don’t need life insurance cover.

“But, they do. They need life insurance for the same reasons as men do. If, as the primary or secondary breadwinner in the family, a woman had to pass away or become ill or disabled and unable to work, what impact would the loss of her income have on the family’s financial future? Would her loved ones be able to continue to lead the lifestyles they are used to?

“The chances are that the family would be severely affected by the loss of her income, and more so if the father who is left to carry the family financially is also one of the masses who have been laid-off due to recessionary job-cuts.”

Referring to statistics from the United States, Farrell says males account for over 80% of job losses since the recession there began, with the country’s national unemployment rate sitting 8.1% among males and 6.7% among women.

“While there’s no published statistics regarding the unemployment rates of men versus women in South Africa, rising unemployment on the whole should be a cue to every woman who is concerned about her family’s financial future to secure adequate life insurance cover, regardless of whether she is the main breadwinner or not.

“Think about it. Should anything happen to her, her life insurance policy might be the only lifeline to her family if her partner isn’t working, or doesn’t earn enough, and can’t support them. With adequate life cover and proper financial planning, the father would be able to support the children and maintain the family’s standard of living even if he remained unemployed

“Clearly, there is a definite and pressing need for women to have their own life insurance polices. They can no longer rely on their partner’s life insurance policy and it’s too risky not to have any cover at all,” stresses Farrell.

She concludes saying that the cost of life cover has decreased substantially in recent years and there are many affordable packages available today which allow consumers to manage their risks without breaking their budgets.