Dr Fred Philippou, Financial Planner at Liberty

Many South Africans are one unexpected event away from financial distress. Whether it’s retrenchment, illness, or disability, the financial pressure facing households across the country continues to intensify amid rising living costs, economic uncertainty, and increasing financial responsibilities.

Statistics South Africa’s latest unemployment figures paint an even more concerning picture, revealing that more than 300,000 jobs were lost during the first quarter of 2026, pushing the country’s unemployment rate to 32.7%.

Behind every job loss is a person, a family, and often an entire household relying on that income to survive.

“For many South Africans, a salary does not only support one person. It pays school fees, groceries, transport costs, medical expenses, debit orders, and often supports extended family members too,” says Dr Fred Philippou, Financial Planner at Liberty.

“When that income suddenly stops, the financial impact can be immediate and overwhelming. This is why financial protection has become increasingly important in helping people navigate periods of uncertainty and financial disruption.”

Income protection can help create financial stability

Income protection or retrenchment cover can provide temporary financial relief during periods of unemployment or income disruption. While no policy can remove the emotional stress that comes with losing a job, having some level of financial support can help individuals continue meeting essential obligations while they work towards financial recovery.

This may include helping to cover monthly expenses such as bond repayments, rent, groceries, school fees, transport costs, and other financial commitments during periods of uncertainty.

“At a time when many households are already financially stretched, losing an income can quickly place families under severe pressure,” says Philippou.

“What we are seeing is that financial resilience is no longer only about growing wealth, but also about protecting yourself against disruption.”

Your ability to earn an income is one of your greatest assets

Disability cover remains one of the most overlooked forms of financial protection. Many people insure their cars, phones, and homes, but often overlook their ability to earn an income, which is arguably their most valuable financial asset.

An illness or injury that prevents someone from working can have long-term financial consequences, particularly if there is no plan in place to replace lost income.

For many working South Africans, their income supports not only themselves, but multiple family members and dependants. Protecting earning ability therefore becomes critical to maintaining household stability and long-term financial wellbeing.

Serious illness can have financial consequences beyond medical costs

Critical illness cover is also becoming increasingly important as serious health conditions continue to affect people during their working years.

While medical aid may assist with treatment costs, it often does not account for the broader financial impact associated with serious illness, including time away from work, recovery costs, lifestyle adjustments, and additional care requirements.

Financial protection can help ease some of this pressure, allowing individuals and families to focus on recovery instead of financial survival.

Protecting the assets that support everyday life

Short-term insurance also continues to play an important role in helping South Africans protect the assets they rely on every day.

For many people, a vehicle is not simply a convenience, it is access to employment opportunities, business operations, schools, and economic participation. Damage, theft, or loss of essential assets can create further financial strain during already difficult periods.

Protecting these assets can help minimise disruption and support greater financial continuity when unexpected events occur.

Planning for uncertainty has never been more important

While no one can predict retrenchment, illness, disability, or unexpected life events, preparation can make the difference between a temporary setback and a long-term financial crisis.

As economic uncertainty continues to affect households across the country, the importance of financial advice and financial protection has never been clearer.

Because when your income stops, your life should not.