10 things to do if you lose a loved one in COVID-19, suddenly

These times have taught us precious lessons on how things can change swiftly, emotionally as well as financially. As big an emotional loss is when a loved one passes away- and worse, so suddenly, it is important to take stock of your money box. Here is what you need to do.

Find the benefits from the employer

It is important that the families have communication with the deceased member’s employer. They need to check the benefits provided by the employer like employees’ provident fund, gratuity, and other benefits.

Scrutinise all the important financial documents

In most Indian families, this situation is quite prevalent that the man of the house is in charge of the financial matters while the wife and children are completely aloof about it. Find out all financial papers and documents and scrutinise them. You can appoint a financial professional to take care of the same.

Check options for replacing the Income

If the primary breadwinner passes away unexpectedly, who is going to earn now?

The family must think about the options for replacing the income or start a second line of income to take care of their monthly expenses.

In the above case, Anjali is a homemaker while her son Yash is completing his education. Thus, Anjali can think of some small business ideas (for instance, catering or something which she can do at home) that can take care of her day-to-day expenses.

Check whether the deceased had any WILL

A Will is an important document that lists down every bit of your Financial Assets & Liabilities. If yes, then go through the Will and cross-check the items listed therein.

Notify the Authorities

Notify the authorities in charge of transferring the Property Names, Asset Management Companies & Banks in case of Investments & so on. Jot down every single place where you need to notify the authorities & replace the name to avoid further nuisance.

Claim the Insurance Policies

The primary source point of investments for Indian middle-class families has been insurance policies. Many of us have bought term plans, endowment plans, and various other insurance policies from the Life Insurance Corporation of India. Check the Policy Documents and claim the insurance policies.

Check for any ongoing Loans / Liabilities

Any liability that the deceased may have taken, must be paid off immediately. In fact, many financial advisors advise writing this in the Will that before the assets get distributed, all loans, liabilities, and taxes must be paid off first.

Check if there are any ongoing Loans / Liabilities in the deceased’s name. If yes, then check whether it is insured and can the amount be waived off.

Get a hang of your monthly budget

Many of you might be aware of your monthly budget. But, things change when such a tragic incident knocks on your door. You need to cut down your expenses and figure out your source of Income.

Make Investments as per your requirement

After running the numbers, as to how much claims you might get, what is the PF Amount that will be credited into your account…make an investment plan to reach your goals. If you are looking for interest-paying options that can support your monthly expenses, you can look towards investing in debt options like Post Office Monthly Income Scheme, Company Fixed Deposit & so on.

Take adequate Medical Cover

Go through your Mediclaim Policies. Check whether you are adequately covered. If not, take an adequate medical insurance cover suitable as per your requirements.

At times, life is hard on us…but the real deal is to swim your way through! Thus, let us strive to attain financial stability while fighting the virus!