Term Insurance under MWP Act
There are numerous provisions created in India to secure the interests of women of which Married Women’s Property Act is one. You can opt for it while buying your term plan and provide your family with financial support. So, let’s understand what MWP Act is and the pros and cons of opting for it.
What Is the MWP Act?
The Married Women’s Property Act (MWP Act) states under Section 6 that the benefit of an insurance policy bought by a married man is the property of the wife or the wife and children. And the sum assured cannot be claimed by the husband, any creditors and be used to clear the husband’s liabilities. This act provides special security to the interests of the wife and children removing the creditors from claiming the policy proceeds.
How Does the MWP Act Protect Family?
Under the MWP Act, only the wife and the children can lay a claim on the life insurance plans benefits. No other heirs or relatives can get the proceeds. Even if the husband and wife divorce later, the beneficiary, which is the wife and children, do not change. When you compare the MWP Act with normal insurance policies, the sum assured of the plan can be claimed by creditors to clear the debts you have. The MWP Act eliminates this element, safeguarding the family.
Who Should Opt for MWP Act?
A salaried individual that wants to protect the policy benefit can buy a term insurance policy under the Married Women’s Property Act. You can secure your children under this act even if you are a widower or a divorcee.
How to buy term insurance under the MWP Act, 1874
Here is how you can buy life insurance plans under the MWP Act:
- You can ask your insurance provider that you want to buy the term plan under the MWP Act
- You will have to give personal information of the beneficiary of your policy which has to be your wife or children
Pros and cons of the MWP Act
Here are some advantages and disadvantages of MWP Act that you should know before opting for it:
Pros of the MWP Act
- The needs and requirements of your loved ones are secured under the act
- The act doesn’t allow the liabilities of the family or husband to affect the sum assured
- The MWP Act in India applies to every married woman without any discrimination
- You are able to create a trust fund-like situation to protect your children
Cons of the MWP Act
- The debts or loans cannot be repaid with the sum assured of the term insurance
- The beneficiary cannot be updated after a divorce or under other situations