Women usually do not think of themselves first but what happens if they can no longer provide for their families?
One of the biggest financial planning mistakes women make is not planning for critical illness in their prime working years. A survey shows that 70% of women’s critical illness claims hit women in their thirties, forties and fifties.
These figures come from the Momentum Life Insurance’s 2024 claim statistics and are a stark reminder that serious illnesses such as cancer or heart disease are not just concerns of old age, but a pressing financial threat much earlier in life.
That is why experts say that one of the biggest financial planning mistakes women make during this stage of life is not ensuring that they are covered for critical illness.
According to Joretha Bothma, head of product development, underwriting and claims at Momentum Life Insurance, a serious diagnosis in a woman’s prime working years can have a devastating effect, leading to significant income loss and mounting medical bills.
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Financial planning will not mean much without critical illness cover
“For women who are the primary or co-breadwinners, an unexpected serious illness can be a double blow, adding financial stress to an already heavy physical and emotional toll,” Bothma says.
She adds that a safety net, in the form of critical illness cover, can provide crucial support to cover expenses not typically included in medical aid, such as rehabilitation therapy, specialised treatments, modifications to your home or car, or additional help with childcare as this allows you to focus on your recovery without added financial anxiety.
Momentum Life Insurance paid out R895 million in critical illness claims last year and 41% of these were for women. Momentum Life Insurance’s 2024 claims data highlight a growing trend: women are increasingly claiming for critical illnesses at younger ages, often during their peak earning years when they carry significant family and financial responsibilities.
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Bothma says a critical illness can create a financial burden that extends far beyond what health insurance covers. “For women balancing careers, families and financial responsibilities, critical illness cover can be the key to avoiding financial hardship.
“This lump sum payout can replace lost income, pay for specialised treatment, cover childcare or school fees and protect savings, investments and retirement plans.”
Critical illness cover for your needs
Bothma stresses that critical illness cover should fit your specific needs and be based on a personalised approach.
“Start by assessing your financial security, evaluating your current situation, and understanding your risks. From there, it is a good idea to connect with a trusted financial adviser to help you navigate the complexities of financial planning and tailor a solution that meets your unique needs.
“A woman’s prime working years are a time of growth, ambition and financial building. However, an unexpected critical illness can put it all at risk. Taking the time to secure the right critical illness cover is one of the most important steps women can take to protect themselves and their loved ones.”
