Kashmeera Kanji, Head of Market Analytics and R&D at Discovery Life

Women can have a unique financial journey, shaped by caregiving, career progression, health, relationships, and responsibilities to extended family. Life events, such as illness, disability, or loss, can create significant financial strain not only for the individual but also for their loved ones.

Whether through unpaid work or through bringing in an income, a women’s ability to continue doing this hinges on her being able to fulfil her duties. Have you considered what would happen to your family if you passed away, or if illness or disability meant you could no longer earn the same? A robust life plan ensures your loved ones are cared for, no matter what life brings.

Kashmeera Kanji, Head of Market Analytics and R&D at Discovery Life, shares practical life cover pointers for women at different life stages – from starting their first job to building a family and winding down in retirement.

Lived reality

Statistics South Africa (StatsSA) reports that more than two-fifths of households are headed by women and 43.4% of children live only with their mothers, compared to 33.8% who live with both parents. At the same time, Discovery data shows that women earn, on average, 24% less than men. And because women live longer than men – on average 69,6 years compared to 64 – they must stretch their financial resources over more years.

Encouragingly, women are increasingly taking charge of their financial futures. For instance, recent data from Lightstone Property shows that sole female homebuyers now account for nearly 40% of property purchases, up from 30% in 2014. However, home ownership brings added responsibilities, making proactive financial planning, including life insurance and living benefits, essential to safeguard income and protect long-term goals at every life stage.

According to Discovery Life, women are becoming more proactive about financial protection. Between 2020 and 2024, there was a 30% increase in women taking out life policies, compared to 12% among men. This shift reflects a growing awareness that life cover isn’t just in the event of death. Living benefits, such as income protection, severe illness, and disability cover, are now considered essential tools for maintaining financial stability during life’s uncertainties.

“Longer lifespans and greater caregiving responsibilities mean women face distinct financial pressures,” says Kanji. “This makes proactive financial planning essential; not only to protect themselves but also to ensure the wellbeing of those who rely on them.”

Discovery Life’s 2024 claims data illustrates how women’s financial risks evolve as they age:

• Under 30 years – 81% of income protection claimants were professionals
• 31 to 40 – 37% of all female income protection claims fell into this age band
• 41 to 50 – 34% of all severe illness cancer claims occurred in this age band
• 51 to 60 – 37% of income protection claimants were receiving payments for permanent disabilities
• Over 60 years – 31% of disability claims were due to cancer

Adapting life cover benefits to evolving life stages

A holistic life plan takes into account a wide range of life-changing events that can impact income and quality of life, as well as loss of life. This allows you to prepare for an unexpected event and offers you an opportunity to have some control over the financial future of your household.

1. Starting out

Your first job brings independence and financial responsibilities, including, perhaps, paying off student loans, car repayments, medical aid, and retirement savings. You may even be financially responsible for family members.

“At this stage, income protection through a life insurance product should be a priority. It protects your most important asset: Your ability to earn a salary. The younger and healthier you are when you take out this cover, the more affordable it is. Waiting until later, or after a chronic illness diagnosis, often means higher premiums or even exclusions,” says Kanji.

Kanji also advises drawing up a will. “It may feel premature or even strange at this stage, but even a second-hand car, starter investments, or a savings account should be protected.” Recent Discovery Life data shows that women already lead in this area – 54% of wills drafted through Discovery Wills and Trust Services are by women.

2. Career transitions

You should review your cover when you change jobs, start a business, or at least once a year. “Your income, lifestyle, and risks evolve, and your insurance should keep pace to prevent being underinsured,” adds Kanji. Being underinsured means that you may not be able to maintain your lifestyle if a life-changing event happens to you.

3. Building relationships and families

Marriage, long-term partnerships, or starting a family are significant milestones that can significantly influence financial planning. Life insurance becomes a shared responsibility – protecting a partner, settling debts like home loans, covering substantial medical expenses arising from illness or disability, and securing children’s education.

Kanji stresses the importance of annual cover reviews with a trusted financial adviser: “Update your policies to reflect life changes and new responsibilities and ensure that beneficiaries are current. It’s about safeguarding the future you are building.”

4. Navigating change: Divorce, death, or new beginnings

Divorce or death of a spouse can disrupt finances. It’s not uncommon for one partner to manage certain aspects of shared financial responsibilities, which can leave the other uncertain about what cover even exists.

“Sometimes a partner pays for your life policy, and they may continue paying even after divorce,” Kanji explains. “That means they can remain the beneficiary, which may not be what you want. It’s vital to take ownership of your cover, update beneficiaries, and ensure your policies reflect your current reality.”

In some cases, a new policy may be needed. “This is why ongoing involvement in financial planning is so important – don’t let it slide,” Kanji cautions.

5. Retirement and beyond

As women live longer, retirement planning must factor in longevity coupled with rising health risks, which can quickly erode savings.

“It’s not about turning 65 and no longer needing life insurance,” says Kanji. “Living benefits can protect your retirement basket if you’re diagnosed with a severe illness or become disabled. Discovery Life allows you to monetise your health and wellness journey throughout the term of your policy to create a substantial asset after 65. Clients can have their full amount of life cover paid to them simply for surviving to age 65. For women who, according to recent Discovery Corporate and Employee Benefits data, retire with 21% less than men in retirement assets, these benefits can be particularly valuable.”

“Living longer has pros and cons,” adds Kanji. “Women typically have more time to fund a life policy, which lowers the premium and is generally 15 to 20% lower than those for men. But on the other hand, women must prepare for longer retirements, which creates financial pressure to fund those extra years.” Finding smart ways to enhance your retirement savings is key to financial planning.

A lifelong financial journey

Kanji concludes: “When women prioritise life cover and living benefits, they’re protecting their loved ones and taking control of their financial future. It’s an investment in independence, resilience, and lasting security, today and for the years ahead.”