As South Africa honours Women’s Month, Sanlam Risk & Savings is drawing attention to a silent but urgent financial crisis: critically low levels of insurance among women. This is despite women’s increasing economic participation and their growing role as primary breadwinners.
With female-led households on the rise, this protection gap doesn’t just place families at risk - it undermines the broader potential for long-term wealth creation and economic resilience across generations. Some key findings:
According to the Association for Savings and Investment South Africa (ASISA), South African women earners have on average a death cover adequacy ratio of just 40% – meaning they would need to more than double their current life insurance to provide adequate financial protection for their families.
At a household level, a 2022 Sanlam survey found that only 16% of women have income protection, compared to 20% of men – despite 35% of women citing their income as their most valuable financial asset, versus just 22% of men. This mismatch between financial responsibility and protection places women, and those who rely on them, in a precarious position.
While 38% of South African households are headed by women, and women’s labour force participation rose to 55.8% in 2024 (up from 50.9% in 2014) according to StatsSA, this progress is offset by widening structural inequities – especially the gender pay gap. In South Africa, women in similar roles are paid about 20-32% less than men. Post-pandemic, the global time estimate to close this gap has worsened, now sitting at 135.6 years, according to UASA.
“The figures clearly show that, despite increasing economic participation, women are systemically financially vulnerable. This extends beyond protecting wealth – it is about making sure families get the chance to build it in the first place,” says Karen Ferreira, Product Actuary at Sanlam Risk and Savings. “With women now the main earners in nearly four out of ten households, the right insurance for women could ensure a family’s financial progress is not erased in an instant.
Without proper cover, the death or disability of a breadwinner can upend a family’s future. Children may drop out of school, assets may be lost, emergency debt with high interest rates may be needed. Often the long-term aspirations of the dependents fall by the wayside, locking families out of wealth-building opportunities for generations.
Economic impact
The underinsurance issue extends beyond families. It has long-term implications for the nation’s broader economic resilience.
A Swiss Re Institute study (2021) found Insurance promotes economic growth and reduces inequality by helping households manage shocks and stabilise income. It encourages risk mitigation, supports better decision-making, and enables more complex economic activity—ultimately fostering more equitable and resilient growth. Countries with robust insurance sectors may recover faster from crises — whether pandemics, natural disasters, or financial downturns.
“When budgets are tight, insurance is often the first thing to go,” adds Ferreira. “But it’s one of the few tools that ensures the people who depend on you don’t have to start over if something happens to you.”
Sanlam is calling on women to assess their current portfolios and ensure they have adequate life cover, income protection, disability and severe illness insurance – particularly as they shoulder increasing financial responsibility.
“Insurance isn’t a luxury – it’s a foundation,” concludes Ferreira. “It’s a lever for dignity, stability, and peace of mind. It’s what allows the next generation to keep moving forward.”
3 Questions Every Woman Should Ask Herself
The Sanlam Financial Matters Survey underscores the pressure South African women are under: 24% of female respondents report feeling financial stress almost daily. 62% would welcome financial coaching and support – a clear call for guidance and empowerment. Ferreira advises women to engage with a financial advisor and ask themselves these key questions:
If something happened to me today, would my family cope financially? Think about debt repayments, rent, school fees, groceries, transport and dependent care.
Do I have enough life cover or just a policy I signed years ago? Underinsurance often goes unnoticed until it’s too late. A quick assessment can change that.
Do I understand the difference between life cover, disability cover, severe illness cover, and income protection?
Ferreira concludes, “Sanlam is absolutely committed to building a more resilient South Africa and Africa. We are deeply invested in helping people rebuild from setbacks to change their stories and foster generational wealth and well-being. A big part of this is raising awareness through the currency of creativity, through campaigns like the ‘Undercovered Agent’, currently running. We need to have these critical conversations. It starts at home.”