YOU BECOME A PARENT

1. Get yourself adequately insured. What you need is cover that will take care of the needs of your spouse and child, should something happen to you. Calculate the insurance cover by estimating your expenditure needs over the term of your policy (say the next 20 years). You should update your insurance cover to factor in changes in income, liabilities and responsibilities.

2. Start looking at education-linked insurance policies for children.

3. Start systematically investing in mutual funds, perhaps, even equities. These investments will come in handy as your expenditure increases.

4. Invest some money in highly liquid instruments to meet sudden requirements for funds.

5. Open a public provident fund account for your child.

6. Update your will. "You should write a will once you become financially independent. And it should be reviewed at every significant eventuality in your life," says S.H. Bhojani, Partner, Amarchand Mangaldas & Suresh A. Shroff & Company.

7. Review your nominees for bank accounts, investments, loans, and insurance policies. "But remember, a nominee is no substitute for a will," says Bhojani. A nominee has the right to receive the money (after your demise), but he may not have the right to own it.

8. Cut down on your liabilities. Reduce your monthly outgo towards various loans.

9. Start looking at new avenues of investment.

10. Identify, through mutual consent, a legal guardian for your child should something happen to you, and formalise this process.

YOU GET MARRIED

1. Talk money with your spouse.

2. If you have changed your name after marriage, make sure to make the change in all your old investments. File an affidavit on the name change. "Many women maintain two or more names after marriage (one in their bank account, another in the insurance policy, for instance) and they run a risk in the event of a dispute," says Bhojani. Women who do not wish to change their surname after marriage should, ideally, get their marriage registered to safeguard against any disputes in the future.

3. Take out an insurance policy (if you haven't already). You may also want to increase your insurance cover.

4. Review your nominees. Remember, a nominee needs to be registered (by the institution in which you have made the investments). Get a confirmation from the institution (bank, insurance company or mutual fund) that the name of your nominee has been registered.

5. Invest in real estate. When you buy property, it should (ideally) be in both your names.

6. Start investing. You need higher returns to be able to maintain a better lifestyle.

7. Write a will. And if you already have a will, review it.

8. Consider taking out a pension policy.

9. Both you and your spouse should open a public provident fund account.

10. Create an emergency fund to which both of you will contribute regularly.

ONE OF YOUR PARENTS DIES

1. File for life insurance claims.

2. See if all the nominations are in place. Often investments are in a single name and that can cause some inconvenience in case of an untimely death. If that's the case, you would need a copy of the death certificate and no-objection certificates from surviving family members.

3. Look at avenues for investing the insurance money. If the surviving parent is dependant on you, it makes sense to invest the money in a monthly-income or a pension scheme.

4. Check for a will. In case there is no will, follow the law of succession of your community.

5. Hire a lawyer in case there is an inheritance that has to be carved up.

6. Reassess your insurance needs. It may go up or down, depending on the number of people now dependant on you.

7. Add the surviving parent's name to your medical insurance policy, if possible.

8. Look at various investment options to fulfill the financial needs of the surviving parent.

9. If some money comes your way through inheritance, explore investing options.

10. If the deceased parent had a pension scheme, transfer it to the surviving parent.

-compiled by Swati Prasad