Normally, people keep the information related to financial matters confidential, but often such confidentiality may deprive the financially dependents from getting the much needed money.
The rapid spread of Covid-19 infection has made everyone susceptible to the viral infection. Moreover, the daily news of the demise of thousands of people – young and old alike – and the long queues in crematoriums and cemeteries remind us that life is uncertain.
So, with the death rate going up many fold during the ongoing pandemic, it’s time to reveal your finances – bank deposits, investments, insurance, etc to your near and dear ones before the death comes knocking at the door in the disguise of Covid-19 or any other form.
Normally, people keep the information related to financial matters confidential, but often such confidentiality may deprive the financially dependents from getting the much needed money when they face financial crisis after the death of the breadwinner.
According to some estimates around Rs 18,000 crore of unclaimed money lying with banks have been transferred to the Depositors Education and Awareness Fund (DEAF), a fund launched by the Reserve Bank of India (RBI) in 2014 for banks to park such unclaimed money.
As per the estimates of the Insurance Regulatory and Development Authority of India (IRDAI), the unclaimed money lying unclaimed with insurance companies is around Rs 15,000 crore, while the figure of the unclaimed money lying with Post Office and corporates is about Rs 3,500 crore.
Another major chunk of about Rs 26,497 crore pension money is lying in inoperative Provident Fund (PF) accounts with the EPFO, while the figure in inoperative Public Provident Fund (PPF) accounts is estimated at over Rs 20,000 crore.
Apart from death, there may be some other reasons behind the huge amounts of money lying unclaimed with financial institutions, but it’s better not to take any chance.
So, apart from nominating your dear one, reveal all your financial details to the nominee(s). As the pandemic is hitting many members of the same families, also reveal it to some other persons who you trust.
To make the revelation, do the following:
- Make a diary and write down all your assets and where about their respective certificates and papers and name of the nominee(s).
- If you feel necessary, make a Will on simple paper.
- Share the details of the diary and the Will, if any, with your loved ones and/or the persons you trust outside your family in person or through email.
Also, to keep the financial instruments active, keep on paying the dues, especially premiums of all your life and health insurance policies.