FINANCIAL PLANNING FOR WOMEN AFTER LOSING THEIR PARTNER

 

Women may find it an impossibly difficult task to take charge of finances after the death of their spouse, especially if they are unfamiliar with the complexities of money management. As per a statement given by 35-year-old Sumita Chakraborty to the Hindustan Times, "I lost my husband during the second wave of the pandemic in India. He was just 40. In just a matter of a few days, the lives of me and my children were thrown out of gear completely. Things have been incredibly hard; the emotional upheaval and the grief have colored all aspects of our lives, and healing is going to be a long journey. Matters have been complicated on the financial front too since his demise.". Life seems too difficult, even for Sumita Chakraborty, who is a software engineer based in Delhi. Even though she is a well-educated woman with a sound professional background, managing finances while taking care of the household and children was a difficult task for her.

It's really difficult and stressful to lose your partner. Comprehending emotional loss can be quite challenging. The agony of the loss, though, may be made worse by addressing the financial difficulties that come with it. A woman who lost her partner should still comprehend her financial situation, arrange data, file claims, review her financial strategy, and handle the mechanics of financial payments. Instead of rushing into any financial decision, it's critical to take it one step at a time.

Compared to men, women have a greater life expectancy. More often, it has been seen that males have a shorter life span as compared to women. It becomes financially difficult as well as emotionally distressing for a woman to lose her spouse. Particularly if she hasn't had experience making financial decisions or has never participated in making financial decisions. Most women's involvement in financial decisions is limited to setting the household budget. As a result, when a crisis situation—such as the loss of a spouse—occurs, they are either unprepared or afraid to handle their finances.

There are certain things to be taken care of by women in such situations:

1. Know where you stand financially: Before you make any financial decisions, find out how much money you have in assets and obligations, or, in other words, understand your financial standing. It's critical to understand this initially. Gather bank statements, stock and mutual fund statements, insurance policies, and other investment-related paperwork for this.

2. Prepare the documentation: To go forward, it is essential to arrange all financial records and preserve them in one location. This becomes even more crucial if you haven't participated in the family's financial decisions up until now.

3. Make claims first as per the insurance policy and Will: Does your husband have any insurance policies or a Will? If there is a Will or any insurance policy, filing a claim is much easier. You can begin the probate procedure with the aid of a lawyer to claim asset distribution as per Will. However, things can become a little complicated if there is no Will. According to inheritance regulations, you will need to get a succession certificate. In this situation, you ought to look for a competent attorney as well. Following that, you should file claims with several organizations, including life insurance firms and the provident fund office. Although these things take time, it is crucial that you not put off taking action on your end. The same goes for claims against insurance policies. As soon as possible, you should get in touch with the nearest branch of the insurance company to file the claim and get the proceeds.

4. One step at a time: Making snap judgments is never a good idea, particularly if you are stressed out in a scenario like this. Even if you are knowledgeable about finances, you shouldn't make any significant financial decisions in a hurry. It is usually preferable to weigh your alternatives before making a decision.

5. Replacing lost revenue: You must think about how to replace this lost income if your husband was employed at the time of his passing. If you hadn't been working before, you could consider getting a full-time job. If you currently have a job, think about taking a weekend job or working part-time to supplement the family's income.

6. Take care of the financial details: You might not know where to start if your spouse is in charge of all utility payments, investments, etc. Make a list of all the recurring payments that must be paid, and then choose how to handle their logistics. Where feasible, automate payment processes.

As per data provided by the Hindustan Times recently, according to the United Nations, India is home to almost 42 million of the world’s 115 million poor widows. In 2015, the World Economic Forum, citing a study conducted by the Loomba Foundation, stated that one in seven widows globally live in extreme poverty, and India, with an estimated 46 million widows, has overtaken China (44.6 million) to become the country with the largest number of widows.

As stated in the Hindustan Times, historically, widowhood in India has been a harbinger of acute social discrimination and suffering for millions of women. While things have improved thanks to a slew of court rulings, policy changes by governments, and awareness about the evils of stigmatization of widows, life after losing a spouse continues to be marred with suffering for countless women. And one of the main factors that becomes an important determinant of the quality of a widow’s life is finances.

 

Source: www.hindustantimes.com

Blog Home | Visit Our Website | Investment Planning