There is no way of avoiding money problems in this economic climate.
If one is not part of the low-income earners who are stressed about everything becoming expensive, they are high-income earners with unsustainable debt.
According to the money stress tracker report from July 2023, three out of four South Africans feel money stress, 12% more each year than they did the previous year.
As a result of this financial stress, mental ill-health creeps in.
“Mental health and financial well-being are intricately linked in South Africa, where economic disparities, unemployment, and financial stress can contribute to mental health challenges. Addressing these issues requires a multi-faceted approach, including efforts to reduce economic inequality, expand access to mental health care, combat stigma, and support vulnerable populations,” says Hollard Life Solutions’ consumer engagement manager Reuben Oosthuysen.
While mental health has been a dominant discourse in the country for just less than a decade, there are insurance products that cover this.
Elaborating on these products, Reuben says that health insurance also known as medical aid covers outpatient therapy, inpatient psychiatric treatment, medication for mental health conditions, and life insurance covers death by suicide, even though there could be waiting periods that one needs to be privy of.
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Other products include disability insurance which cover mental health issues that result in the inability to work, income protection which provide financial support for the duration of one’s inability to work as a result of mental health conditions and critical illness insurance which cover severe mental health conditions such as schizophrenia.
To best leverage these policies in order to help ease the financial burden of mental health challenges, Reuben lists three strategies to do so.
- Understand Your Policy: Start by thoroughly understanding your insurance policy, whether it is health insurance, disability insurance, or another type of coverage. Pay attention to the terms, conditions, and coverage limits related to mental health services. If you have questions, reach out to your insurance provider or broker for clarification.
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Here are some additional things you can include; but are not limited to the following:
Spend mindfully: Make deliberate choices about where your money goes. Avoid impulsive buys and focus on aligning your spending with your values and financial goals.
Apply self-care: Practise stress-reduction techniques such as meditation, yoga, exercise, or talking to a therapist to help you stay resilient and focused on your financial goals.
Get professional advice: Seeking help from a reputable financial adviser or debt counsellor can be a crucial step in addressing the financial aspects of the problem. A medical professional can advise you regarding mental and physical illness symptoms.
Tap into work wellness programmes: Many companies have staff wellness programmes. Sign up for these to track and improve your mental wellbeing.
Seek community and peer support: Connecting with support groups or peer networks can provide a safe space to share your financial concerns.
Prioritise expenses: Differentiate between essential and non-essential expenses. Start by covering necessities such as housing, utilities, groceries, and debt repayments.
Manage debt: Prioritise high-interest debt and explore options such as debt consolidation or refinancing at lower interest rates. Consider reaching out to creditors to negotiate repayment terms.
