5 STEP PLAN TO KEEP FINANCIAL RECORDS OF YOUR FAMILY
Future has always been unpredictable, and it will always remain that way. Considering the nature of our job, where we have to be away from our families for a long time, it is necessary that financial records of your family are in order at ALL times. At any point of time if you suffer any physical disability, an accident or death, your financial wealth will be considerably hampered; your family must be aware of the financial wealth records so that they can be easily accessed.
Here are 3 plans to keep your financial records known to your family in case of any emergency:
Make an emergency list
Make sure that a complete emergency list of the documents and other important possessions is ready along with all the details as well as its respective location.
- Safety Deposit Box key (Locker Accessibility)
- Important accounts and passwords
- Credit and Debit cards along with passwords
- The Birth Certificates
- Bank Account Details
- Investment related Information
- Current bills and Dues
- Loans and Liabilities (Legal as well as Illegal Liabilities or loans)
- Health Care Benefits
- Life Insurance Policies
- Car Insurance Policy
- Property and Fire Insurance Policy
- Living Will
- Power of Attorney
- Property Ownership Information
- Car Title
- Home/Property lease deed/Sale
- Income Tax Returns
- Other Valuable objects and Possessions
- Emergency contacts of close family and friends
Note: The contact details of your company should also be provided with your family. Along with the details of your vessel name and your rank.
Organizing your Financial Information
- Once the family member knows where to collect all the documents and information it is necessary to collect it in a systematic and synchronized way to understand it correctly.
- File all the bills systematically, either alphabetically or chronologically. A monthly analysis on your expenditure is advised so that your finances are on track.
- All dedicated cheques, monthly account statements must be filed date wise so as to keep a detailed record of income tax returns, monthly deposits etc.
- Make an annual list of sources of income and investments. All this information would be helpful during the income tax returns where all these details are mandatory. Keeping such information handy helps to manage you and your family members about the financial fiscal proforma to be developed in upcoming years regarding the existing and regenerative wealth available.
- Keep your financial records in a hard disk or pen drive so that It can be accessed easily.
Handling over the information
If all the above-collected information is collected in a well-synchronized manner but not handed over to a correct person the effort of all the collected information may go in vain. Hence, it is equally important to hand over the information to the correctly concerned person. Another option available is handing over this information to a third party i.e. the accountant or an attorney. One can keep the copy of all the listed documents with themselves in their security deposits. By doing so only the trusted or responsible concerned member of the family can access the financial information.
Insurance Policies and Health Benefits
All details of your existing insurance policies should be known to your family beforehand. This may help you in avoiding the surcharge of heavy medical expenditure. It is also necessary that some of the financial investments (existing or partial) are received by the nominee by providing the necessary documents.
Intimating the concerned authorities in time
Insurance fields or health benefit accredited companies require registration within a stipulated timeframe.
For example, informing the medical insurance company with regards to the patient and hospital details within a specific time frame (Generally 48 hours of admission) is vital for the claim settlement process. Such intimations are time bound intimations and should be regulated as soon as possible.
This helps in getting the due registered documents from these authorities in time which is later useful for further documentation procedures.
The task of maintaining a sound financial structure is not so difficult if you update them on a regular basis. It is a one-time effort which will ensure that a lot of unnecessary problems are avoided at a later stage.