Death Benefit Programme -Social Security Programme
I am worried now, How my family can handle financial problems after me ?
Social Security Programme - Death Benefit
In the event of the unexpected death of the primary earner in a family, the surviving spouse or legal heir (son or daughter) may encounter financial challenges. To alleviate this financial burden during such trying times, funds will be raised through a collective crowdfunding effort. This initiative will involve up to 10,000 individuals per group, with each participant contributing Rs 100. The total amount of financial assistance provided could reach up to Rs. 10 lakh.
Concept – Crowed Funding
It’s a well-known fact that adding a spoonful of salt to a glass of water makes it taste salty. However, when you add a teaspoon of salt to a bucket of water, the saltiness becomes less noticeable. Similarly, if a teaspoon of salt is added to a 10,000-liter tank, the effect on the water’s taste is barely perceptible. This illustrates how saltiness, a common issue, can seem more intense when faced individually but becomes almost negligible when distributed among a large group of 10,000 people.
The financial difficulties individuals face can be troubling on their own. However, when multiple families come together to share this burden, it can significantly ease the overall financial strain.
एक आख्यान – एका ग्लास पाण्यात एक चमचा मीठ टाकल्याने पाणी खारट होते हे सर्वज्ञात सत्य आहे. तथापि, एका बादली पाण्यात एक चमचे मीठ टाकले की क्षारता कमी होते. त्याचप्रमाणे 10,000 लिटरच्या पाण्याच्या टाकीत एक चमचे मीठ टाकल्यास मिठाचा परिणाम लक्षात येणार नाही. मीठ आणि त्याची खारटपणा ही सार्वत्रिक समस्या आहेत. तरीही, वैयक्तिकरित्या अनुभव घेतल्यावर, समस्येची तीव्रता वाढते, तर 10,000 लोकांच्या गटामध्ये सामायिक केल्यावर, समस्या लक्षणीयरीत्या कमी होते.
ज्या आर्थिक समस्या आहेत त्या एकट्यास त्रासदायक होते. जर अनेक कुटुंबांनी एकत्र येऊन हा आर्थिक ताण वाटून घेतल्यास आर्थिक समस्या सुटण्यास मदत होईल.
In the modern nuclear family, typically comprising 3 to 4 members—such as the husband, wife, and one or two children—the male head of the household usually earns the family’s income through employment or business.
Unfortunately, if the male member suddenly passes away, the financial responsibility for the entire household falls on the female members. During these challenging times, women face severe financial difficulties, struggling to manage household expenses, provide for their children’s education, and arrange marriages. They also grapple with issues like repaying home loans. With friends and relatives often distant during such crises, the future stability and happiness of these women can be abruptly and severely affected.
The male head of the household is responsible for engaging in financial planning to ensure the family’s financial stability and well-being. Proactive financial planning helps prevent future financial difficulties and reduces concerns about the future.
While the concept of a social security scheme is known, its implementation is not as widespread as needed. Government social security programs often target employed individuals and come with limitations. Although various financial investment options are available, none are without flaws.
Flashstar Foundation is a non-profit organization functioning as a public company. It has introduced various social security initiatives designed to support middle-class families in India, irrespective of caste or religion, with this program being one of them.
The program’s main objective is to establish a platform based on pre commitment “Crowdfunding” to assist spouse / female members with temporary financial needs. If a participant under the Social Security Scheme passes away unexpectedly, a “Financial Assistance Fund” is available to support the deceased member’s family as part of the Foundation’s social responsibility. Each member of this group contributes Rs. 100 in the event of another member’s untimely death within the scheme. The scheme operates with groups of up to 10,000 members, and a one-time maximum Non-refundable financial aid of up to Rs. 10,00,000 will be provided to the affected member’s family.
The primary aim of this assistance is to help cover the small debts and loans owed by the family after the death of the male member, allowing the female member to avoid financial hardship for a while.
A main male member (Karta) or earner from a middle-class family can join this scheme. The concept is simple: each member agrees to contribute Rs.100 to the family of any member who passes away unexpectedly. This mutual commitment not only provides financial assistance but also ensures the satisfaction and virtue of helping others in times of need.
Documents Required to Become a Member of this Scheme
The documents needed to enroll in the “Financial Assistance Fund – Social Security Programme” are as follows:
1) Member’s PAN and Aadhaar Card are required for enrollment.
2) Member’s contact number/Mobile Number.
3) Member’s email address.
4) Details of nominee (spouse, son, daughter, or family member) for the scheme..
5) Bank account information of the beneficiary (spouse or legal heir) for fund transfers.
How does the Social Security Program’s death benefit work for the family?
Please note that this is not an insurance plan. Interested members from middle-class families must commit to contributing a maximum of Rs. 100 (one Donation Credit) to the Financial Assistance Fund to provide support to the nominee. Each member should maintain a minimum of 5-10 “Donation Credits” in their account by March 31, 2025.
If the registered male head of the family passes away unexpectedly, the family (wife, son, or daughter) will be eligible for a one-time financial assistance payment of up to Rs. 10,00,000, based on their annual contributions to the scheme.
Once “Donation Credit” Amount Deposited this scheme cannot be refunded after 30 days.
Once the “Donation Credit” amount is deposited into this scheme, it cannot be refunded after 30 days. Members can withdraw their name from the scheme within 30 days of deposit, but after this period, their participation will be confirmed and the amount will not be refundable.
No, bills are not required. To claim the benefit, simply submit the application in the prescribed form along with the Death Certificate. In the event of a registered group member’s unfortunate demise under the Financial Assistance Programme, the benefit amount of up to ten lakhs will be transferred to the nominee’s (spouse or legal heir) bank account within 30 working days. The spouse or nominee can claim the benefit from Flashstar Foundation either online or offline.
Is the 80G exemption benefit available for contributions to this fund?
No. Contributions to this social security scheme by group members are classified as crowdfunding fund contributions for the specific member, not as donations. Therefore, these contributions do not qualify for the 80G exemption benefit.
How can the spouse, legal heir, or beneficiary claim this amount?
To request financial assistance, the spouse or legal heir of the deceased member should submit a written claim along with the required form and the deceased member’s death certificate. The Flashstar Foundation will review and approve the claim within 30 days.
The claim amount will be determined based on the total number of members in the group and each member’s contributions, which amount to Rs. 100 per member. The maximum amount that can be approved is Rs. 10 lakh.
Each group can have up to 10,200 members.
Does the fund contribution amount need to be paid every year?
In this crowdfunding model, family members commit to contributing a maximum of Rs. 100 each in the event of a group member’s demise. If no member passes away, no contribution is required. The system works by having each member agree to contribute Rs. 100 to another family in the group if needed. This ensures that each member’s maximum liability is capped at Rs. 100 per group member, but contributions are only made when there is a death within the group.
What is the age limit to become a member of this scheme?
To become a member of this scheme, an individual must be at least 18 years old and no older than 59 years.
Is there a locking period for this scheme?
Yes, the scheme has a locking period of one year from the date of full payment of the membership fee. The Flashstar Foundation requires this time to accumulate and manage the funds effectively.