Managing finances though essential is often given little or no thought. Be it maintaining records of various transactions or even executing a will; there are only a few takers.
In a survey, conducted by Exide Life Insurance, it was found that more than 80 per cent of the population save and invest to build a legacy corpus.
Life Insurance is said to be the most preferred financial instrument, especially with regards to constructing a house as well as for the education and weddings of their children. According to the survey, it is also said to be the most preferred financial instrument for retirement planning. About 49 per cent of the respondents chose Life Insurance over provident funds or mutual funds. However, the current life cover is half of the ideal cover requirement. Only 29 per cent of the respondents were said to have Life Cover that is 10 times their annual income.
Wills, on the other hand, do not seem to be a popular option among many Indians.
The survey shows that as much as 72 per cent of the respondents have not executed a will despite being aware of it. Only 13 per cent of them have executed a will, but have done so at a slow pace.
With regards to maintaining records, the majority share their financial details with their families. Those who do keep a tab of their finances, use a physical diary. Despite digital channels catching up, a hardcopy of such documents in often preferred. Only 45 per cent of the ‘digitally savvy’ respondents maintain a scanned copy of their essential documents on the laptop and desktop. Over 30 per cent, however, store the documentation on their mobile phones.