If the earning male member or head of the family loses his earning capacity or needs a medical emergency or dies suddenly, dependents (housewives/parents/brothers/sisters or any other dependent family members) will be at loss. The dependents, as such, should be fully aware of their earning members' financial transactions / dealings.
Payment Made Till Here the details of payment made till which month?- Earning member of head of the family should make their dependent family members aware of all his / her financial transactions, be they investments or loans, as people around might take undue advantage of dependents' financial illiteracy.
- Whenever possible, head of the family/earning member should teach their dependents about how to deal with banks and financial institutions.
- Earning member should definitely make nominations for their investment / loans (like Insurance, Mutual Funds, Provident/Pension Funds, Shares etc.) held / availed. He should also provide some basic information about those transactions to their dependents and their benefits after him / her.
- As it will be very difficult for earning members, who might be illterate to understand the investment & loan terminologies, earning member can prepare a 'Statement of Investment & Loans (in brief) As on (Date)' in the following format in excel sheet in an easy to understand language.
And if possible, he / can update this Statement every month or once in three months for quick and ready reference by the dependents in case of earning members' death:-
| Column Heading | Details |
|---|---|
| Investment / Loan | Whether money invested or loan availed. |
| Name of the Bank / Financial Institution / Person | Name of the bank or insurance company or financial institution or the person with / from whom money invested or loan availed. Or the property purchased & its location with details in brief. |
| Product | Whether Insurance or Shares or Mutual Fund or PPF or Fixed Deposit or Home / Auto / Business or any other Loan |
| Account No./Folio No. | Account No. / Folio No. / Policy No. or any other Ref. No. |
| Effective & End Date of the Transaction | Mention since when transation took place and till which date / month / maturity date. |
| Mode of Payment | Whether being paid Monthly / Quarterly / Half-yearly or Annually? |
Amount Amount (Premium/EMI etc.) being paid.
Nomination &
%age of Shares Name of the person nominated & %age of shares for each.
Important Remarks / Conditions:
This column can contain some important remarks like person to be contacted, conditions to be fulfilled to claim the amount, what to do and what not to do, important documents, if any, lying at home or with somebody-else etc.