Women have been a precious part of Indian culture and society since ancient times. Despite the progress, women still face some significant challenges, like gender discrimination, violence, and unequal pay. Therefore, in recent years, there have been some positive developments to empower women - the Married Women's Property Act (MWP Act) is one of them.
But how does the MWP Act help in insurance? Let's say you buy a term insurance policy and make your wife the nominee of it. Now, how can you be sure that the sum assured will not be taken away by anyone else like your relatives or creditors? Buying the term plan under the MWP Act ensures that. Once you buy your term life policy under the MWP Act, it cannot be entitled by anyone or directed by the jurisdiction to be utilized for repaying your debts.
The Married Women's Property Act was issued in 1874 to help women protect their property or finances from lenders, creditors, and relatives.
It is a women's welfare act and its section C states that when an individual buys a term insurance plan under this act and makes his wife the nominee, the death benefit shall be given and be entitled only by the nominee. No relatives or creditors can demand it by the law as well.
As mentioned above, the Married Women's Property (MWP) Act of 1874 stated that a married women's property or earnings would be considered her separate property. In 1923, the MWP Act was added to life insurance.
Under this act, the insurance policy taken by the husband under the MWP act will be entitled to his wife only and no one else after his demise. The wife and children of policyholders will solely claim the maturity and death benefits.
Keep reading the pointers below to understand how the MWP Act protects your family:
Buying a life insurance plan under the MWP Act is simple and hassle-free, the same as buying a regular insurance policy.
The main objective of buying a life insurance policy is to ensure our family's well-being. What if your death claim does not reach your beneficiary? Therefore, you must buy a life insurance policy under the MWP Act to ensure that only your wife and kids are entitled to claim death benefits.
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Sahil is a passionate content writer with over two years of expertise in the insurance domain. He uses his knowledge in the field to create engaging content that the customer can relate to and understand. His passion lies in simplifying insurance terminology, ensuring a hassle-free understanding for potential policyholders. With his outstanding collaborative efforts with people, he understands different perspectives and keeps readers' viewpoints at the forefront of his content writing approach.