Mar 10, 2017 09:52 AM IST | Source: Moneycontrol.com

Death, divorce: 10 steps for women to be secure in adversity

Financial planners and advisors feel women, both working and homemakers, should keep themselves prepared to deal with financial uncertainties given the social structures.

Death, divorce: 10 steps for women to be secure in adversity
Sarbajeet K Sen
Moneycontrol News

Are women more vulnerable to modern day living and the risks associated with it? Do they need to risk-proof themselves more than their male counterparts? If so, what are the specific life risks and vulnerability to situations that women should keep themselves prepared on the financial front?

Financial planners and advisors feel women, both working and homemakers, should keep themselves prepared to deal with financial uncertainties given the social structures.

“Women is relatively more vulnerable than men to the twists and turns of life. A woman’s nurturing character increases the impact of negative events,” says Anil Rego, CEO and Founder, Right Horizons.

He says women’s risks include possibility of loss of income due to death of bread-winner husband, marital discord or health issues specific to women. “The common event in our times is of marital breakdown which has great impact. This becomes greater for women who are not employed, or qualified to hold a job. If custody of minor children is added to the mix, the result can be extremely financially stressful,” says Rego.

The other life-changing event could be sudden demise of husband. “Death of a husband has severe impact on a woman, again with the homemaker without much education being at a greater disadvantage. Serious health issues in the family, especially for the major income earner, can also have similar negative effect,” Rego said.

So what should a women do reduce the negative impact of such life-events? Vishwajeet Parashar, Senior VP and Group Head Marketing, Bajaj Capital, says ideally women should be financially independent.

Here are 10 basic steps Rego and Parashar suggest women should take to ensure their family’s finances are secure even in the wake of some emergency:

• She must ensure that as a couple her husband has bought a Term Insurance plan.

• She should advise her husband to buy loan insurance for any running loan, be it a home loan or a car loan.

• She can suggest her husband to get a Life Insurance Policy effected under Married Women's Property (MWP) Act. It will be instrumental in transferring her husband's assets only to her and the children even in the face of challenges like creditors, family disputes, property distribution, bank loans and business loss.

• Women should ensure that family accounts including a statement of all assets and investments are maintained properly

• Custody of passwords for all financial investments must be with the woman.

• Ensure that all investments made are in joint names

• Ensure you are the nominee for insurance policies.

• Working woman should buy adequate life Insurance for herself because in that way she can ensure that in case she faces some uncertainty, her husband will continue getting the financial support from her end.

• Working woman should invest a certain sum of her money towards her own mother's financial independence.

• Last but not the least, learn to earn. “Financial independence will set you truly free. This can be through education – learn formal and informal skills to give yourself the ability to earn a living for your family and support yourself during the worst events,” Rego says.
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