Falling pregnant has a string of costs that put a burden on both parents…
When you find out you’re expecting the excitement is tangible. It is an exhilarating time in many people’s lives, however as preparations are made for the arrival of a newborn, the realisation of the associated financial implications kicks in, which can sometimes dampen the mood.
It’s time to get serious and start doing calculations
For example, medical aid and whether or not it covers a good portion of your birthing expenses and associated scans and appointments. And setting up a baby’s room and the endless list of daily paraphernalia. There’s no way around it – having a baby is expensive.
And maternity leave often creates a gap in income, further adding to the financial stress.
If you have accrued debt over the years, this is likely to be stressing you out most of all. On top of all these new expenses, you’re still dealing with paying off past purchases. As soon-to-be new parents, it’s understandable that you might suddenly have a very strong desire to be more on top of your finances.
You might be asking yourself if there is any way to minimise the damage? One thing you might not have considered yet is whether or not you have credit life insurance.
Credit life insurance is written into many debt contracts and protects you if you are unable to make payments on your credit loans ? anything from a cellphone contract to a retail store card
Is there a way to minimise damage?
Most people don’t know what it is, never mind how or when they can claim for it. But the good news is, if you have any debt, you probably have it.
Credit life insurance is written into many debt contracts and protects you if you are unable to make payments on your credit loans ? anything from a cellphone contract to a retail store card. It can cover payment of debt in the event of “death, disability, terminal illness, retrenchment, unemployment or other insurance risks that impair the consumer’s ability to earn an income or meet their debt obligations”.
Consider this: if you don’t receive a salary for four months, how do you plan to pay for your home loan, vehicle or credit card payments? A maternity claim on credit life cover could make a big difference. Yet most women on maternity leave rely on the Unemployment Insurance Fund (UIF) to cover their loss of income. This often isn’t enough. In most cases it’s merely one-third of your current salary.
The last thing you want to worry about is whether you’ll be able to make your loan repayments…
“When you’ve just brought new life into the world, the last thing you want to worry about is whether you’ll be able to make your loan repayments. With good credit cover, you won’t have to,” says Divisional CEO of Switch2 Credit Life, Sasha Knott. “With effective planning, women who take credit life cover before they fall pregnant can rely on this type of insurance.”
With this cover in place, you can claim against your maternity benefit.
“If the claim is approved, your insurance provider will settle the monthly instalments directly with the credit provider,” she explains.
With a new baby on the way, you’d surely want one less thing to worry about.