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Category Life Insurance

Don't let your finances be your downfall

27 July 2016 Dr Philippa Peil, Liberty
Dr Philippa Peil, Chief Medical Officer at Liberty.

Dr Philippa Peil, Chief Medical Officer at Liberty.

Women play many different roles throughout their lives and have many unique needs compared to men, this includes financial needs. As a woman you need a unique financial plan that is specifically suited to you and much like the perfect pair of shoes, the perfect financial plan will have you standing tall and confident.

A healthy lifestyle has many benefits, from an improved mood to combatting diseases, not to mention potentially extending your lifespan and saving you loads of money on medical bills and out-of-pocket expenses. The cost of being a woman is significantly higher than being a man, especially when we consider medical costs. Understanding the different ways to support your health from a financial point of view becomes more relevant.

According to a recent report by the World Health Organisation, women face a range of health challenges that include growing risks for chronic non-communicable diseases as they age. The 2015 Claim Statistics Report by Liberty shows that 28.5% of claims paid to women were for cancer, and additional claims were made for cardiovascular, respiratory and musculoskeletal disorders.

“The cost of quality healthcare has increased significantly in the recent years and making provision for healthcare insurance is an essential part of your financial planning,” says Dr Philippa Peil, Chief Medical Officer, Liberty.

Whether you are a career woman or stay at home mom, critical illness cover is vital for any woman. . Often stay at home moms don’t realise the impact that being diagnosed with a critical illness could have on their family, especially from a financial perspective. Who would step into your shoes if you were not able to do the school run, the homework and manage the day to day activities and your home? Recruiting someone to assist can relieve the burden, but it comes at a price. One that needs to be paid on top of increased medical bills. Knowing that you have cover that will ease the financial implications of a critical illness could go a long way to peace of mind in such circumstances.

Studies have shown that married people accumulate about four times more savings and assets than single people and that divorced people have 77% less assets than singles. These stats tell us that divorce can clearly take a toll on your finances and that you need to be prepared for this. When you get married, consult your financial adviser and ensure that both names are on all assets so that in the case of a divorce, you can get at least half of these assets. Geraldine Macpherson, Legal Marketing Specialist at Liberty, advises that “Involve your financial adviser to ensure that the fund is correctly named in the divorce order as well as the percentage of the fund (referred to as pension interest) that you are entitled to. Not wording your divorce order correctly could result in costly delays”.

Financial planning is vital in securing you and your family’s future. “Through consultation with an accredited financial adviser you can ensure that you are ready for every possible financial situation, from loss of income, to death of a partner, getting a sudden windfall, and everything in between”, says Boitumelo Mothoagae, Financial Adviser, Liberty. Having a solid financial plan allows you to see the bigger picture for you and your family and make decisions in both the short and long-term.

As a woman there are many different factors that affect your financial wellbeing. Without a solid financial plan in place, the path to financial security will be very bumpy. It’s extremely important to ensure that you don’t follow anyone else’s plan for financial success but your own unique plan.

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