As a mother of young children, your time is particularly valuable as you fulfil the role of caregiver, nurse, educator, chauffeur and general day-to-day organiser. As your children get older, they need your time less, but their education costs continue to increase, especially if they go on to tertiary education.
It is not uncommon for women to take time out of the workforce or to cut back on their careers when they have children, but this does not mean that their role in the household has no economic value. Whether you are the main breadwinner, secondary income earner or stay-at home mom, you will need to have support in place should something happen to you.
Underinsured women remain a concern
Our 2017 claim statistics show that in the over-40 age group, women, many of whom are mothers, make up only 40% of risk policyholders, highlighting a concerning insurance gap.
If you’re wondering whether or not you need to worry about cover, ask yourself the following questions:
- If I or my spouse dies, will there be sufficient money to pay for day-care and housekeeping? Remember that the breadwinner will have additional expenses and/or less time for work.
- Do I have outstanding debt, such as a mortgage or car finance, which I’d like to settle should the unforeseen happen?
- Will my children be able to complete school and university if I die or am unable to work?
- How will my family care for me and maintain their living standard if I become disabled?
What cover do you need?
As a mother of young children your greatest health threat is cancer. Over a third of claims in 2017 were cancer-related, of which breast cancer is by far the most prevalent. For women between the ages of 40 and 55, over 40% of cancer claims relate to breast cancer, so it is extremely important that you have regular screening tests.
Statistically, you are more likely to suffer from a severe illness or disability than death if you are under the age of 55, so you need a policy in place that pays out not only if you pass away, but also should you become ill. Therefore, Lifestyle and Income Protection are important benefits to have in place.
Also consider ensuring that your children’s education will be taken care of if you are unable to work through Liberty’s EduCator risk benefit. It is designed to pay the costs associated with your children’s education from crèche to tertiary level should you become severely ill, disabled or even if you’re no longer around.
Within EduCator, the option exists for the child on the policy to get up to R1 000 000 life cover without any health underwriting once the child completes their education. Liberty may require the child to undergo HIV and cotinine (COTS) tests. This option is available to the child irrespective of whether a claim was made under EduCator or not.
In 2017, Liberty paid R6 273 510 in EduCator claims, paying child beneficiary fees from Grade R right up to the fifth year of university. Of that amount, R2 975 000 was paid out for learners in pre-primary and primary education (Grade R to Grade 7).