Protect your financial well-being against the risk of retrenchment

News reports paint a bleak picture for South Africa’s economy in the months ahead.  It certainly seems that more and more South Africans are being faced with the prospect of retrenchment as our economy struggles and companies restructure in a bid to manage costs.  Financial protection against the risk of retrenchment has become more important than ever, and while you may think that your employer or industry is not at risk, current economic volatility paints a different picture. Recent statistics released by trade union Solidarity show that some 60 000 people were affected by large scale retrenchment processes across various industries in 2015 alone.

“These statistics are unsettling for any salaried person in a time when companies across all sectors are downsizing and cutting costs.  Retrenchment can be a devastating blow, for many different reasons. Besides the emotions of shock and depression, there is the very real stress of having to deal with the loss of income and fears about your financial future. It’s comforting to know that with good financial planning and insurance cover, you can manage the risk of retrenchment, so that if the worst happens, you’ll have a financial buffer,” says Ryan Chegwidden, Head of Product & Technical at Hollard Life.

Hollard Life offers a Retrenchment Benefit that pays out if you are involuntarily retrenched as a result of your employer downsizing or facing closure.  The Retrenchment Benefit pays out up to R150 000 as a lump sum and you can claim more than once on the same benefit.  The benefit is available to all salaried individuals.

How it works

In order to claim, you need to have been continuously employed on a permanent basis for at least two years, of which at least one of those years must be with the employer from where you have been retrenched.  The Retrenchment cover is available to Hollard customers who have an existing policy such as life, disability or critical illness in place.  It’s a tax free benefit.

Financial Planning essential even during tough times

“The retrenchment benefit is a modern day essential that provides welcome financial support during a very challenging time, allowing you to minimise your money worries and focus on getting back on your feet should you be retrenched,” adds Ryan.

Talk to your financial advisor about adding a retrenchment benefit to your insurance portfolio.  For more information visit https://www.hollard.co.za/life-policy-add-ons/retrenchment-benefit