Empowering Women: The importance of long-term financial investments

As part of commemorating Women's Month, financial expert Dr Darlene Kalonji Mbukula has urged women to consider taking long term financial investments to safeguard their children’s future.

Mbukula  who is the Executive Head of Client Experience in insurance at one of biggest banks in the country, said that as South Africa prepares to celebrate Women’s month this August, is a timely opportunity to reflect on the evolving role of women in society, particularly as financial leaders and caregivers.  She said this was more important especially as the 2019 Statistics South Africa (StatsSA) Report revealed that 44% of households are women-headed which highlights the vital role women play in sustaining families and communities.

Dr Mbukula said she was concerned that despite their growing economic influence, many women remain significantly underinsured, leaving their families vulnerable to financial hardship in the face of unexpected life events. 

“Women make up 51% of South Africa’s population and they live longer than men – 67.7 years compared to 61.5. This longevity, combined with their increasing role as breadwinners, means women often shoulder long-term financial responsibilities. However, many overlook the importance of adequate insurance cover. Households and individuals that rely heavily on women’s income and stability need financial protection against life-altering events,” said Mbukula.

She also revealed that the 2022 Financial Sector Conduct Authority study found that only 10% of South Africans have life insurance cover. The Association for Saving and Investment South Africa also revealed that women under 30 years face an average life insurance shortfall of R1.6 million and disability shortfall of R1.7 million

“The loss of a woman’s income—whether through death or disability can be devastating. Without insurance, the financial fallout can destabilise families, forcing them to cut essential expenses, sell assets, or incur debt. While funeral cover is insufficient. The 2022 ASISA Life and Disability Insurance Gap Study revealed that South African income earners face an average life insurance shortfall of R1 million and a disability cover gap of R1.4 million. These gaps are especially concerning for women juggling multiple roles,” said Mbukula.

She said that investing in comprehensive insurance including life cover, disability, and critical illness will go a long way in securing their evolving needs and advised women to take life covers in the early stages of their lives because starting early maximises affordability, and policies with flexible terms allowing clients to tailor cover to their budget.

willem.phungula@inl.co.za