- —-File the life insurance claim within 15 days
- —- Choose a fee based financial planer to re align financial goals
Nobody knows how long anybody will live, but the covid 19 pandemic has made the situation extremely painful. We did not see death so closely before this. This year I have seen and known death of too many young people, between 30- 40 years, having small children. In some unfortunate situations, young couple died leaving young children.
In this hour of uncertainties, I am compelled to write this post dedicated to people who lost a young member in their families. This is a vulnerable time, however, we need to show resilience for the sake of the young children, senior citizen parents and other dependents.
I am writing this post assuming the deceased had a life insurance policy, some financial investments or enrolled under some employee benefits.
The right of handing the finances remains with the legal heirs and nominees
- Keep Aadhaar card, Pan card, death certificates in one place and make a few copies for official purposes
- Incase the deceased was an employee, connect with the HR team or reporting manager to check and understand the death benefits of employee and understand the processes to collect the same.
- Speak to your life insurance agent seek help in filing death claims
- Speak with health insurance agent to seek help in filing health insurance incase the deceased was hospitalized and eligible for health insurance claims
- Mutual fund advisors and Bank home branches to get assistance to source Bank statements and further investment details may be retrieved
- Make a diary to note down the investment details of stocks and mutual funds
- All mutual funds, stock investment details are either noted with CDSL – https://www.cdslindia.com/Main/ContactUs.aspx or NSDL – https://nsdl.co.in/contactus.php and check the process to retrieve the details of dematerialized investments
How to manage the claim money, accumulated money?
When a working person passes away, financial void is created because of non credit of monthly salary. So, the first and most important thing one should do is create a system for monthly income to support family expenses, children education and healthcare.
Few monthly income options available are – Post office monthly income schemes, Bank fixed deposit month interest income.
One can also consider Annuity income plans from life insurance company. One can also choose a Systematic Withdrawal Plan on mutual fund schemes.
A good fee only financial planner should be consulted.
As the family steps into a new way of life, it will take some time to adjust the lifestyle. so, keeping six months expense in Bank savings account should be kept. This amount will come handy and work as a financial cushion.
One may need to relook at the entire ongoing financial planning for buying home, children higher education entirely. So, after securing a monthly cash flow, it is advisable to sit with a good financial adviser to plan financial future from here in new circumstances and changed life goals.
Hoping life will look up for everybody!
This is a evolving post, idea is to add and accommodate as much as relevant information one may need, so please share your suggestions, thoughts and ideas to make this post more useful for every one who may need it.
