9 Ways to Help Family Members in Financial Trouble
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

9 Ways to Help Family Members in Financial Trouble

9 Ways to Help Family Members in Financial Trouble
  • 25th Jul 2022 |
  • 2,992

During uncertain times, people turn to their friends and family for financial help. Financial hardships can occur because of a sudden job loss or substantial medical expenses. You must consider the impact of the problem and whether you have a plan for avoiding the same pitfalls in the future before helping your loved ones in financial trouble. If you were wondering how to solve financial problems in your family, we have got you covered.

Long-Term Insurance

Another way in which you can help your family member is by taking long-term care insurance. Health issues are uncertain and come with huge medical expenses with long-term consequences. Also, if you are the bread earner of a family, you must apply for an insurance plan like ULIP, endowment savings plan, or others so that your family can stay financially secure even after an unfortunate event.

Evaluate Financial Situation

Financial consultants advise family members to sit down together to evaluate finances. They need to discuss various financial matters like where’s the money, how can one access the money, and what are the penalties involved in taking a loan to meet finances.

9 ways to help family members in financial trouble

Give a Cash Gift

If your loved ones face a short-term cash-flow problem, you can assist them with a cash gift. For this, you must decide on how much you can give them without putting yourself in financial jeopardy. To help them, you can either give the maximum amount you can afford all at once or perhaps give smaller gifts. You must keep in mind that cash gifts are not a loan that must be repaid back in future by your family members.

Make a Personal Loan

Your family members can approach you anytime and ask for a short-term loan. You must talk frankly with them, clearly write the loan terms on paper, and have both parties sign it before offering them the loan amount. This ensures that each party is clear on the financial arrangement they’re entering into.

Co-Sign a Loan

You can be a co-signer in case your family applies for a loan. It is critical to understand that you are legally binding yourself to repay the loan if your family member who is borrowing the loan fails to do so. The lender under this situation can take legal action against you and require that you pay the full amount, which can affect your personal finances. Before co-signing for a loan, make sure you:

  • Check your family member’s credit reports, credit scores, and monthly budget to know their ability to repay the loan.
  • Meet with the lender in person and understand all the terms and conditions of the loan.
  • Maintain copies of all the documents that are related to the loan.
  • Ask the lender to notify you if your family member misses a payment or makes a late payment.

Create a Bill Paying Plan

People facing financial hardships aren’t aware of where their money is going. You can help your family in creating a detailed budget and help them understand the importance of financial planning. In order to do so, you may offer to show them your budget and your bill-paying system that helps you in staying financially secure.

Offer Non-Cash Assistance

If you’re not willing to give your family member cash, you can even offer non-cash financial assistance. You can do so with gift cards. With these gift cards, you’ll have more control over what your money will be used for.

Prepay Bills

To help your loved ones during uncertain times, you may want to consider prepaying one or more of their regular bills. Doing this may help them avoid a short-term crisis and can give them the little extra time they need to work out their situation.

Help Find Local Resources

You can even help your family members to find local professionals that can help them in the right direction, such as:

  • Career counsellors and employment agencies
  • Welfare agencies and similar services
  • Credit and debt counsellors
  • Lenders who can provide short-term solutions

So now that you know how to solve financial problems in family, you must sit down with your loved ones and ask them as to what help they need to work their way out of uncertain financial emergencies. From there, you’ll better understand the type of information and assistance they need.

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Busting Myths and Facts About Term Insurance Policies

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Can Senior Citizens Avail Term Insurance?

Different Types of Protection Plans

4 Reasons Why You Need Critical Illness Cover

Term Insurance With Riders In India

Understanding Term Insurance Riders

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Why Should You Not Take A Term Plan Without Medical Test in India?

Term Insurance with Critical Illness

Can I Get Term Insurance on Behalf of My Spouse?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Can I Buy Term Insurance for a COVID-19 Patient?

Cost of Term Insurance Likely to Increase Soon

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

Insuring Protection Against Death With Death Insurance Rider

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Why Should You Buy Term Insurance in 2022?

All you need to Know about Term Insurance Plans for housewives

Why Term Insurance Is Better Than ULIP?

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

4 Methods to Calculate How Much Term Insurance You Need

What Is the Correct Age to Buy Term Insurance?

How To Choose the Right Term Insurance Plan?

Should You Have Multiple Term Life Insurance Policies?

Gift Your Father A Term Insurance Plan This Father's Day

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Eligibility Criteria for Buying Term Insurance in India

Advantages & Disadvantages of Term Insurance in India

8 Things To Do After Buying Term Insurance

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Planning For Son or Daughter's Wedding

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Why Should You Add a Rider to a Term Insurance Plan?

8 Benefits of Term Insurance You Should Know

Form 16, Form 16A, and Form 16B?

All About Term Insurance Inbuilt Coverage

Should You Buy a Term Plan After 40?

What All Documents Required For Term Insurance In India?

Do Beneficiaries Pay Taxes on Term Insurance?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Term Insurance Basics You Should Know

10 Ways to Mentally Refresh After a Stressful Day

Buying A Term Insurance Plan? Take These Factors into Account

8 Factors to consider before choosing a Critical Illness Insurance

Best Investment Plans for Children - Secure Your Child's Future

5 Benefits of Early Retirement Planning

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

What Are Insurance Riders and How to Choose Them in a Term Plan?

What Should Be The Duration Of Your Term Plan in India?

Can You Increase Your Term Insurance Cover?

Tax Benefits of Term Insurance in India

Calculating Term Insurance Premium

Advantages of Buying Term Insurance in Your 50s

What is Critical Illness Policy?

Do I Need to Give a Medical Test for Term Insurance in India?

Endowment Plans vs Term Plans: Understanding the difference

How Does A Term Life Insurance Work in India?

Is term Insurance Needed for People With No Dependents?

Term Insurance: Smokers vs Non-Smokers

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

How Much Term Life Insurance Cover Do I Need in India?

Is Life Insurance Investment Worthy Enough

Why Buy Term Insurance Plan With a High Cover?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

How to Surrender Term Life Insurance When You Have No Liabilities?

Why 1 Cr Term Plan Is Necessary For Family?

Term Plan with Spouse Cover

Why Term Insurance Is Important in times of COVID-19?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Do You Need Term Insurance Cover After Retirement?

What Types of Deaths Are Covered in a Term Insurance Plan?

8 Types of Death not covered in Term Insurance Plan

5 Term Insurance Benefits for Single Women

Why Should New Parents Buy Term Life Insurance?

Is There Any Tax Benefit on Term Insurance?

What are the Documents Required for Term Insurance Plan?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Know How to Invest at Every Age for Larger Returns

Importance of Term Insurance at Every Stage of Your Life

Term Insurance Calculator - Everythng You Need To Know

How To Change The Nominee in Term Insurance?

Why should single women purchase term life insurance?

Is It Good To Buy A Term Insurance Plan In 2022?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

What are incremental term insurance plans?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Reasons You Need Term Insurance Plan as a Self-Employed Person

Should Youngsters, Working Couples Buy Term Insurance Plans?

What Is a Renewable Term Insurance Policy?

Term Plans are Definitely Cheaper than You Think!

6 Reasons That Make Term Insurance a Must Buy

Why is it important to buy term insurance plan?

Term Life Insurance Plan for Smokers vs Non-Smokers

6 Types of Death not covered in Term Insurance Plan

Individual Life Insurance vs. Group Term Life Insurance

Why Spending Time with Friends is Essential for Your Mental Health?

Make Your Online Term Plan Your Familys Monthly Payout

Is Term Life Insurance Plan an Investment or Expense?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Insuring Against Disability With Disability Insurance Rider

Insuring Against Accidents with an Accidental Death Insurance Rider

How To Calculate The Amount Of Term Life Insurance You Need?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Should you buy a Renewable Term Life Policy?

How to Identify Term Insurance According to Your Needs?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

How Not To Get Your Term Insurance Claim Rejected

Top 3 Reasons Why You Should Buy A Term Plan Now

5 Things To Consider While Buying Term Insurance Plan

How Does Term Life Insurance Work? Learn the Benefits

What Are the Best Term Insurance Plans for Planning Retirement?

Protection for your family

Choosing Riders for Insurance Plans

Tips to Choose the Right Term Period for Term Insurance Plan

Term Insurance Age Limit – Term Plan for All Age Groups

Why Married People Should Buy Term Insurance Under MWP Act?

Can I Make Changes to My Term Insurance Policy Post Purchase?

What Happens if you Hide Facts in your Term Insurance?

Can I Extend the Tenure of My Term Insurance Plan?

Comparing Term Plans – What Should You Look Out For

9 Most Frequently Asked Questions on Term Insurance

Why Premium Amount for Term Insurance is So Low?

How To Choose the Right Sum Assured Under a Term Plan?

Everything About Claim Settlement Ratio for Term Insurance

5 Reasons to Buy Term Insurance When You are in Your 30s

What is a short term insurance policy?

How to Compare Term Insurance Online

All about Online Income Tax Calculator

4 Things To Expect From Your Term Insurance Plan in India

What is Term Insurance? Term Plan Meaning and Definition

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Increasing Term Insurance and Riders

Does Term Insurance Cover Accidental Death?

Why You Must Include In Your Financial Planning?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Is Group Term Life Insurance Provided By Employer Sufficient?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Is a Term Insurance Policy Portable?

What Should You opt for - Limited or Premium Pay?

10-Year Term Life Insurance Policy - Explained in Detail

Is ₹1 Crore Term Insurance Good Enough Cover?

While Buying Term Insurance Compare Features, Not Just Premiums

Steps on How to Buy Term Insurance Online

Why Buy Term Insurance Even at Rising Rates?

Ensure Protection Against Death, Disease & Disability With Life Insurance

How Much Cover Should I Take In A Term Plan?

How do I Calculate My Term Insurance Premium

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Term Insurance Plans and Policies for Smokers

Insurance Policy for Housewife In India

Can Term Insurance Plans Be Purchased As A Gift?

Why does every working women need life insurance?

How Much Term Insurance Do I Need

9 Point Guide on how to File Income Tax Return Online

Which Death Type Does Your Term Plan Not Cover?

Planning For Children's Future

What is Insurance Premium - A Detailed Guide

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Side Effects of Covid-19 Booster Doses

Difference Between Term Insurance and Endowment Plan

Different Types of Premiums in Term Insurance?

Why Term Plan Should Be The First Step To Securing Your Future?

Insuring yourself against Ill Health with a Critical Illness Rider