A large majority of South African households are run by single mothers who not only have to handle all the day-to-day financial matters,but also make important decisions to ensure they safeguard themselves and their families in future.
When it comes to financial products such as insurance, single mothers do not necessarily need every type of cover on the market," says Derek Wilson, head of SA's leading insurance and financial comparison website, Hippo.co.za, "Life Insurance is particularly important as it provides your dependents with financial security in the case of an eventuality, be it paying off your debt and/or bond, making allowance for tertiary education or simply ensuring that they will have an income to cover living expenses."
We look at some tips to potentially lessen the burden on our single moms.
Choose the right cover for you
You can opt for cover that lasts a lifetime and has a guaranteed payout benefit you can cash-in at any time, select a cover that runs for only a specified term (for example 10, 15 or 20 years to cover your bond), or cover only your debt such as credit cards, loans and vehicle finance.
Don't get more cover than you need
If you wish to cover your family for the loss of income, it is recommended to get coverage equal to 15 times your current salary. If you would like to cover your debt, add up all your financial obligations to ensure you have adequate debt coverage for the total amount.
The sooner the better
Getting Life Insurance at an earlier stage in life will be less costly than taking out cover when you are older. The sooner you start, the more you could save over time.
Get good health benefits
Some insurers would provide you with a better rate if you live a healthier lifestyle. Get your family to join in on living healthier and you could save on monthly Life Insurance costs.
Compare cover
Do not simply go with an insurer that shouts the loudest. Compare from a range of different providers to get the best deal. You could save time and hassle by doing an online quote.