Your financial mistakes may ruin your family financially. Know how

New Delhi: You frequently make unintentional financial mistakes due to a lack of financial awareness, putting your family's finances in jeopardy in your absence. We'll go over the mistakes you should avoid if you want to give your family complete financial access in this article.

Indians have discovered massive amounts of unclaimed deposits at banks, financial institutions, corporations, and insurance companies in many cases. It happens as a result of significant financial errors made when making financial decisions.

Money becomes unclaimed when you, or your nominee or legal heir, do not attempt to claim it and do not use it for a specified period of time as an account holder. Your primary obligation to your family is to make certain that your hard-earned money is available to them in the event of your absence.

Here are a few blunders that could cause your family to suffer financially in your absence.

Fewer transactions

When you do not use or make any transactions on your account for an extended period of time, it becomes dormant. In the case of a savings bank account, for example, when there have been no transactions for two years. After three years of no contributions or other transactions, a provident fund account becomes dormant. Your family may have difficulty accessing funds deposited in your account if it is marked as dormant.

Not marking nominees to investments

When you submit a nomination form, your nominee gains the legal authority to file a claim on your behalf. It allows your nominee to receive all of the money you have saved or invested to keep their lives financially stable in the event of your absence. No one can heal your family’s emotional wounds if you die, but the right financial attitude can protect your family financially.

Not informing your family

One of the most serious errors you can make is failing to inform your family about all of your investments. You may see it as a form of protection for yourself, but financial secrets are the enemy of your family. If they are aware of all of your investments, they will have access to them whenever they require funds the most, in the event of your death. You never want your family to be in financial trouble when they already have enough.

Leaving insurance details blank

When you purchase a life insurance policy, it is assumed that you are doing so to protect your family. However, if you do not attempt to correctly fill out all of the mandatory fields on the application form, your family will suffer when it comes time to claim that amount. A simple innocuous mistake while filling a form can put your family in financial jeopardy when it comes to meeting their expenses.

Forgetting to digitize your investments

We sometimes overlook documents because of very long-term investments or protection policies. In the event of your death, your family will be unable to access the funds if they do not have a reliable record of it. It is critical to keep your documents in both physical and electronic form so that your family can access and claim the investments.

It makes no difference how many investments you make for your family if you do not fulfil all of the requirements of the documents and application form submission. Your hard-earned money will not help your family financially. Avoid these blunders to provide a financially stable life for your family even when you are not present.