How To Protect Your Dependents Financially?
Use the below tips to protect your dependents safe even when in your absence:
- List of investments: Maintain a list/journal of investments. Whenever you make a new investment update in the journal. Mention all the essential details like account number, login credentials etc. Also, it is a good practice to keep the financial documents like FD receipts, land documents, passbooks etc. in one same place. Keep this journal along with this. This will facilitate the monitoring of your assets. Tell about the journal to your dependent. You need not let them know in full detail. But they should be able to locate this even in your absence. That way one can ensure that dependents do not suffer unaware of how much riches they are entitled to in the case of death of the main family member.
- Nomination: In all the investments, ensure you name the dependent as the nominee. This will reduce the legal issues upon the death of the head of the family.
- Educate: Educate your family members about investment and how to keep money safe. The world is changing. If your family remains unaware of the latest in tech products like bitcoin loophole they will not be able to multiply the wealth they inherit. Latest innovations like this trading software will bring them huge profits.
- Will: Having a will resolves legal issues after the death of the head of the family. Prepare the will in such a way that it clearly pronounces who is entitled to what. If the law requires, get it registered.
- Insurance policies: Having insurance policies will protect the family in the absence of the family head. If sole breadwinner suddenly expires, one cannot think about the plight of the dear ones. Besides emotional sufferings, they have monetary constraints. Having sufficient insurance policies will ensure that the spouse does not suffer to run the family without income. It will ensure that children continue their education and lead the life without any compromise. The most important fact is that you should get the nominee name mentioned clearly in your policy.
- Advance medical directive: Due to old age, if the family head suffers from various health issues, it is better to have an advance medical directive. This will ensure that the medical expenses are carried out uninterrupted even in case the earning member becomes bedridden. Also, even after the death of the family head, the financial inheritance will be smooth for the dependents.