What is the financial preparedness that you should have for the Corona Virus the Chinese pandemic? Let us start at the very beginning. Do a quick audit of your name in all the legal and financial documents. Your PAN, Aadhar, Passport are three of your main legal documents. Make sure that your name is the same in all these documents. This is more true for women maiden name or married name make sure it is the same in all.
Then take a look at the medical insurance that you have. Make sure that you have adequate cover. I would not suggest that you take a special Covid insurance, just take a big enough medical insurance, a top up insurance, and a super top up insurance. These are very technical terms, I would suggest that you consult a good adviser and take an insurance policy.
Check your life insurance and decide on how much you need. If you need term insurance of Rs 3 crore and already have Rs 1 crore term insurance, take a Rs 2 crore term plan. If you are already 55 years of age, you may not need any more term insurance so get rid of the same, right now. Check all the NOMINATIONS and make sure that they are up-to-date and current.
When a person is young (say 22) they may have made their mother the nominee. Once a person gets married they should make their spouse the nominee. Many people forget to do this and suddenly, when the person dies, they come to realize that the nominee has died 10 years ago!
It is necessary to keep all your Nominations current and updated. Anybody who owns a piece of Real Estate should make sure that they have made a will. In most parts of the country, transferring Real Estate after a person’s death is a big task, and has to be done using a lawyer. Having a NOTARISED will goes a long way in making the task easy for the next of kin.
The topic of being “prepared for Covid” is very big. Surely, having multiple holders as “Either or survivor” and many nominees is going to be very useful as couple deaths, and multiple deaths in one family is getting to be very common. To sum up, keep documents, nominations, and your will up to date.
PV subramanyam
writes at www.subramoney.com and has authored the best seller ‘Retire Rich - Invest C 40 a day’