Mar 09, 2017, 02.44 PM | Source: 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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