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Most people prefer keeping their finances discreet and in case of their sudden demise, there’s a possibility that their family is unaware of their investments
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Most of us have witnessed situations, either in our own family or someone we know, where the sole bread winner of the family, who is hale and hearty, suddenly succumbs to an uncertainty and passes away unexpectedly. This has been very common lately due to the Covid-19 outbreak, not forgetting the unbelievably high number of accidents and sudden deaths. What makes these distressing times even worse is seeing the family members of the deceased having absolutely no clue on how to pick up the threads.
Most people prefer keeping their financial matters discreet and in case of their sudden demise, there’s a possibility that their family is totally unaware of their financial situation.
Sample this: A 38-year old man lost his life in a road accident and his wife had no idea about any of his investments and was suddenly asked to take decision not only for herself also for her daughters and in-laws. The going went difficult. And in such a scenario, how do you figure out what to do?
Check bank statement
The first step is to check the bank statements of at least last 1-2 years. In most cases, you’d be able to find certain entries made towards insurance premium, mutual fund SIPs, PPF and so on. Besides, getting in touch with the person’s insurance or investment advisor can help.
Inbuilt/ add-on insurance covers
Also, there are certain insurance covers that come as an add on with various services. For instance, any account holder aged between 18 and 50 years can opt for Pradhan Mantri Jivan Jyothi Bhima Yojana (PMJJBY) at a premium of Rs 330 per annum. The sum insured under PMJJBY is Rs 2 lakh.
Most credit cards come with an inbuilt accidental insurance cover and in such cases, in the absence of a will, the proceedings are divided equally among the legal heirs. Also, if your spouse has any outstanding loan, check with the bank if the loan has an insurance and the entire loan outstanding can be taken care of by insurance.
Employee Deposit Linked Insurance Scheme
If you are working and contribute towards Employees Provident fund (EPF), you are by default covered under Employee Deposit Linked Insurance (EDLI) Scheme. In April this year, the labour ministry hiked the maximum sum assured payable under the Employees’ Deposit Linked Insurance Scheme, 1976 to Rs 7 lakh from the existing Rs 6 lakh.
It is always recommended to keep your trusted family members updated about your investments and insurances. None of us wants our loved ones to run from pillar to post trying to get things sorted when they have not even got a chance to grieve their loss.