In 2018, popular finance expert Monika Halan released her book Let's Talk Money. The book, which eventually became a bestseller and was translated into multiple Indian languages, was revised after COVID-19 to include financial learnings from the global pandemic. One added chapter covered a morbid yet important task: creating the "If-I-Die-Before-You" file.
Traditionally, discussions of death in India have often been avoided, considered taboo or inappropriate. However, the pandemic has shifted societal attitudes towards mortality. As a result, there has been a growing interest in end-of-life planning and grief support services.
A growing number of grief-tech startups have emerged in recent years, providing various services related to end-of-life planning and post-mortem support. These services include digital wills, funeral planning assistance, after-death care, and asset management.
"The overall awareness about the importance of creating a will is very low among the middle and upper-middle-class segments," says Nikhil Varghese, founder of Get Yellow, a digital will platform. While millennials are more open to exploring these options, there is still hesitation among the boomer generation in discussing these matters.
"It's not just for rich people. Everyone needs a will, even if you're middle class," Varghese adds. Without a will, inheritance laws take precedence over individual or family wishes. He stresses the importance of planning ahead, pointing out how many middle-class families are left in a mess when a loved one dies suddenly simply because they didn't know where all the necessary documents were.
A Legacy Left Unwritten: The Risks of Estate Planning Neglect
Silence can be very expensive, especially if you've been building a steady income over the years but haven't created a guideline for your family to access that income. Most people live under the assumption that something like this won't happen to them or their families, but the statistics of unclaimed income in India are staggering. Around 20,000-22,000 crore rupees worth of insurance money in India remains unclaimed.
Unclaimed Insurance Money in India: A Breakdown
- Total unclaimed amount: 20,000-22,000 crore rupees
- Majority from life insurance: Primarily from policies that have matured or resulted in death claims.
- LIC holds a significant portion: Approximately 15,000-17,000 crore rupees of unclaimed money is from LIC policies.
- Types of unclaimed benefits: Death benefits, Maturity benefits, Bonus payments
In addition to life insurance, India's working class has a diverse investment portfolio, including real estate, stocks, mutual funds, fixed deposits, retirement accounts, and even pension funds.
Urban couples, with or without kids, are more often than not unaware of their partner's entire investment portfolio, which can make it challenging if tragedy strikes.
"I don't have enough property or investments to create a will," says Bhavna Mathur, a social impact manager at a large tech company. Mathur is part of a double-income household with one child, living in an upscale neighborhood in Bengaluru. However, she is unaware of inheritance laws in the country and how they affect her as a Hindu woman in India.
In India, inheritance can be a complex process. Unless specified in a will, the assets of a deceased person are distributed according to the country's inheritance laws, which consider factors such as religion and gender. While the 2005 amendment granted daughters the right to inherit alongside sons, the absence of a will can still result in unintended and potentially unfair consequences.
For instance, a woman's property may be inherited by her husband or mother-in-law before her own parents. By creating a will, individuals can explicitly designate their desired beneficiaries, ensuring that their loved ones receive the assets they intend to bequeath, thereby avoiding unnecessary stress and legal disputes during a challenging time.
Planning for the unexpected can provide peace of mind. Follow this checklist to safeguard your loved ones' future:
Checklist for Creating a Digital Legacy Kit
- Will:
- Create a physical or digital will outlining your wishes for your assets and guardianship.
- Inform a trusted family member of the will's location.
2. Digital Legacy Kit:
- List all online accounts:
- Social media (Facebook, Instagram, Twitter)
- Email accounts (Gmail, Yahoo)
- Cloud storage services (Google Drive, Dropbox)
- Online financial accounts (banking, investment)
- E-commerce platforms (Amazon, Flipkart)
- Subscription services (Netflix, Spotify)
- Domain names and websites (if applicable)
- Include login credentials (username and password) securely:
- Consider using a password manager with encrypted storage.
- Mention alternative access methods, such as security questions and recovery emails.
- Data Management:
- Specify account preferences: Decide whether to deactivate, memorialize, or transfer ownership of each account.
- Preserve important data: Indicate if you want specific data (photos, documents) downloaded or preserved.
- Address online businesses: Provide instructions for managing subscriptions or loyalty programs.
3. Device Access:
- List devices: Phones, laptops, etc. Include model numbers and passwords.
- Specify data management: Determine whether data should be wiped, backed up, or transferred.
4. Financial Information:
- Financial Inventory: List all your financial assets (bank accounts, investment accounts, retirement accounts, property details) with relevant documents.
- Digital wallet and cryptocurrency (if applicable): Provide access details and instructions for managing these assets.
- Investment & Insurance Information: Include details of any investments, insurance policies (life, health), and beneficiaries assigned.
- Important Contacts: List contact information for financial institutions, advisors, and tax professionals your family might need to contact.
Indian Startups and Enterprises Offering Post-Death Services-
- Last Journey, Anthyesti: Funeral services & end-of-life planning
- Get Yellow: Digital will and estate planning
- Shradhanjali, Tributes.in: Digital memorials, tributes & obituaries
(Shadma Shaikh is a technology journalist covering internet platforms, app economy and digital culture. She is also the co-founder of FactorDaily, a social-impact focused newsroom)
