Financial abuse, an issue faced by many women, is often overlooked. Financial abuse happens when your partner uses money to control you, leaving you vulnerable and dependent on them. One powerful way to guard against financial abuse is through income protection insurance. By securing your income, even during challenging times, you can maintain financial stability and independence.

Why women need income protection

Women are particularly susceptible to certain financial vulnerabilities, and having income protection can help to reduce these risks.

Financial dependence 

Financial abuse often involves a partner restricting your access to money, preventing you from making independent decisions or escaping from harmful situations. Having income protection ensures that you will still have money available, even if you lose your job.

Gender pay gap

Women often earn less than men, making it harder to recover financially after a job loss or illness. Income protection can help bridge the gap during these setbacks.

Caregiving responsibilities

Many women are also caregivers, which can lead to career breaks and reduced savings. Income protection offers a safety net during income disruption.

What is income protection insurance?

Income protection insurance is a long-term policy designed to replace or supplement your income when unexpected events prevent you working.

Income protection empowers you to maintain or regain control of your money by reducing your financial dependence. This cover offers a vital layer of security, ensuring that you have a financial lifeline if you’re going through a divorce or leaving a controlling partner.

Income protection also covers other unforeseen events that could leave you financially vulnerable. For example, if you are retrenched, a policy may cover your income for 6 to 12 months, giving you breathing room to find a new job. Or, if you’re fighting a critical illness, policy options can include income cover for the duration of the illness. If you should become permanently disabled, the cover could continue up to your retirement age.

Who should consider income protection?

Income protection is a smart choice for women in a variety of situations.

Debt can be a heavy burden when your income is unreliable. Personal loans or a bond on your house can become a source of control for your abuser if you lose your source of income. And if you’re the sole breadwinner, income protection also gives your family a buffer against financial instability.

Income protection premiums are based on factors like your age, health, job, and the level of cover that you need. Policies can be customised to include benefits for retrenchment, disablement, or critical illness. The flexibility of these plans means you can choose cover that fits your budget while addressing your specific vulnerabilities.

However, income protection is just one piece of a larger safety net. Depending on your circumstances, you may also want to consider credit insurance to cover loan repayments if you lose your income, or life insurance to provide for your family in the event of your untimely death. There is also business interruption insurance, which provides valuable cover for freelancers or self-employed women whose livelihoods could be disrupted by unforeseen events.

Take the first step

Financial abuse can leave you feeling powerless, but tools like income protection insurance can help you regain control. Speak to a Nedbank financial adviser to explore your options, because with the right plan in place, you can take a stand against financial abuse and safeguard your future.

If you or someone you know is experiencing abuse at the hands of a partner, call People Opposing Women Abuse (POWA) for support.

Helpline: 011 591 6803