’A financial plan can protect one from terror’

Font Size

Print

Feedback

Email

Discuss

Related Articles

Bejan Daruwalla bequeaths his stellar legacy to Ga...ArcelorMittal short-lists sites in KarnatakaTCS announces new doctorate funding programKPMG adjudged India’s indirect tax firm of the yea...

: planning at all levels from the government to the individual to the company are all important. The more organised a person is, the more process-oriented they are, the better off they will be to handle uncertain and tough situations like this in the future.”

Ranjeet Mudolkar

He categorically states, “It is a sad thing, the terrorist attack in Mumbai and of many things that come out of it, maybe people will also start appreciating the importance of financial planning. Financial planning is an every season fruit and not something you turn to in case of emergencies. The lack of it and ignorance in India is shocking. For instance, when a person is opening an account with a bank, something as basic as nominating someone to take over your assets and account is looked over and often left blank. Insurance too is not an investment but very important for people to adequately cover themselves. And above all, all the details like proper documentation, nominations in business/property/ ventures/bank accounts, the all important will, should be known to a lawyer or someone else whom you implicitly trust. This will protect the family in times of a crisis and emergency. Actually preparing the will and estate planning are extremely important in financial planning so as to ease the process of your heirs getting what’s rightfully theirs as well as efficient handling of the transfers, without administrative delays and stressful paper work to deal with.

Another aspect of insurance, which people should take seriously, is to cover themselves against loans post their death. This will ensure that post death, if there are loans pending to be paid, the deceased family will not be burdened with the same. None of these concepts are new and one should not need such a situation to occur before things like financial planning, estate planning and insurance are taken seriously. For example, when a person changes jobs, they need a medical sickness certificate, which they ask for in order to show the new company. This medical certificate can be obtained via a series of medical tests and procedures. Similarly, if one was to need a financial sickness certificate, he too would have to first go through a series of tests/norms and procedures before he knows his true financial condition.

The most essential steps in financial planning for the worst of situations are:

1. Having the documentation in order.