Investing in peace of mind

Mrs. Moyo, a woman whose vibrant spirit mirrored the bright produce at her Mbare Musika vegetable stall, was a master of the marketplace.

She could haggle the price of tomatoes to the last bond, spot a bruised mango from metres away, and knew exactly when the freshest potatoes arrived.

Yet, when it came to navigating the complexities of securing her family’s financial future, she often felt lost in a sea of uncertainty.

“Life,” she would muse, wiping beads of sweat from her brow, “is a priceless gift. But mari, ah, mari is the lifeblood that keeps the sadza simmering on the stove.”

One sweltering afternoon, a persistent cough that had plagued Mr. Moyo took a frightening turn. The diagnosis that followed sent chills down Mrs. Moyo’s spine. Hospital bills began to mount rapidly, threatening to erode their modest savings. A familiar knot of anxiety tightened in her chest—she had seen too many families financially devastated by medical emergencies.

Then, a long-forgotten memory surfaced: years earlier, Mr. Moyo had—against her protests—purchased a small life cover policy. At the time, she had been skeptical. “Why waste money on something we might never need?” she had argued. But now, faced with financial peril, she realized the profound wisdom of his decision. It wasn’t an unnecessary expense—it was an investment in peace of mind.

Life cover, as Mrs. Moyo was beginning to appreciate, is much more than a lump sum paid after death. It is a carefully woven safety net—a financial lifeline designed to protect those left behind. Think of it as a “just in case” fund, a buffer against life’s sudden storms. It can be used to pay estate duty—those often-overlooked taxes that can erode a family’s inheritance—settle funeral expenses and outstanding debts, and most importantly, secure a family’s long-term stability, including children’s education.

Some life cover policies, like Mr. Moyo’s, also accumulate cash value over time and may offer bonuses or profit sharing. It’s like planting a seed that, when nurtured, grows into a tree bearing financial fruit.

Just a few houses down, Mr. Dube, a retired schoolteacher, found himself in a far less secure position. After years of dedicating his life to shaping young minds, his pension was barely enough to cover his basic needs. He often regretted not investing in an individual retirement plan during his working years.

“I thought my pension would be enough,” he would sigh, regret heavy in his voice. “But zvinhu zvachinja—the world has changed, and I was unprepared.”

An individual retirement plan is, in essence, a personalised financial cushion designed to provide security in one’s golden years. These plans are often tax-advantaged: contributions may be tax-deductible (up to a limit), and the investment returns grow tax-free. Whether you’re self-employed, working for an organisation without a pension scheme, or simply looking to strengthen your retirement income, an individual plan offers a practical path toward financial independence. Funds typically become accessible from the age of 65, or earlier in the case of medical necessity.

Fortunately, Mrs. Moyo had also taken out a basic health insurance policy. It wasn’t the most comprehensive plan, but it covered essential medical expenses at her local clinic.

“I learned a painful lesson from my sister’s experience,” she explained. “One unexpected illness nearly drove her family into financial ruin.”

Health insurance serves as a vital financial shield, protecting families from the high cost of unforeseen medical care. And it’s not just for emergencies—it can cover routine check-ups, preventive care, and prescription medication. There are a variety of plans available, including affordable options designed to work with government or mission-based health facilities.

In addition, Mrs. Moyo had started a modest savings plan dedicated to her grandchildren’s future education. Though the amount wasn’t large, it symbolised a meaningful commitment to their future.

Savings plans are the cornerstone of financial stability. Whether aimed at funding education, saving for a home, or building a rainy-day fund, these plans foster disciplined saving habits and support long-term goals. Some policies even include a death premium waiver, ensuring that savings continue to accumulate even if the policyholder passes away.

The Life Offices Association (LOA) encourages all individuals to seek guidance from trusted financial advisors and to make use of the many online resources provided by reputable financial service providers. As the old adage goes, knowledge is power—and in the realm of personal finance, understanding your options is the first and most critical step toward securing a stable future.

Don’t wait for a crisis to strike before taking action. Start planning today. Because, as Mrs. Moyo so powerfully discovered, true peace of mind is the most invaluable investment of all.

Your feedback, contributions, and insights are crucial as we work to rebuild and restore confidence in Zimbabwe’s insurance industry.

Together, we can lay the foundation for a stronger sector—and a stronger economy.

Contact Us:

Physical Address: 7 Lloyd Close, Ballantyne Park, Harare
Website: www.loa.co.zw
Email: info@loa.co.zw
Phone: (+263) 242 884 628, 884 646