If you’re a single mother, the chances are you have to make all the important financial decisions for your family such as life insurance.
According to a study by Statistics South Africa, most South African households are run by single mothers and only 31% of mothers said they were married. Single moms have to make important financial decisions such as which debts to enter into, how much to save for their children’s education, and how to manage daily expenses to ensure they remain financially stable.
Derek Wilson, head of Hippo.co.za says, “When it comes to financial products such as insurance, single mothers do not necessarily need every type of cover on the market. 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.”
Things to consider before you buy or review your life insurance cover:
- 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 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 car 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 will 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 the insurer that shouts the loudest. Compare different providers to get the best deal, or save time and hassle by requesting an online quote.