Buy a Life Insurance Policy Under the MWP Act
Women have been a precious part of Indian culture and society for centuries. Despite the progress, women still face significant challenges, such as gender discrimination, violence, and unequal pay. Therefore, in recent years, there have been positive developments to empower women, and 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. 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, the benefits cannot be claimed by anyone else or used by the jurisdiction to repay your debts.
What is the MWP Act?
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 6 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 legally demand it.
How Does the MWP Act Protect Women in Life Insurance?
As mentioned above, the Married Women’s Property (MWP) Act of 1874 states that a married woman’s property or earnings would be considered her separate property. In 1923, the provisions of the MWP Act were extended to life insurance.
Under this Act, an insurance policy taken by the husband under the MWP Act will be entitled only to his wife and no one else after his demise. The wife and children of policyholders will solely be entitled to claim the maturity and death benefits.
Keep reading the pointers below to understand how the MWP Act protects your family:
- While buying a life insurance plan, make sure to add your wife and children as beneficiaries with an MWP mandate that cannot be altered. This ensures that only your wife and children are entitled to the benefits.
- When you buy a policy under the MWP Act, you have the flexibility to divide the life cover among your beneficiaries; this can only be done at the time of purchasing the policy.
- The premiums of your term life insurance policy remain unaffected if you buy it under the MWP Act.
How Do You Buy Life Insurance Under the MWP Act?
Buying a life insurance plan under the MWP Act is as simple and hassle-free as buying a regular insurance policy.
- Select the life insurance plan of your choice.
- Fill out the insurance proposal form.
- Inform your insurance provider that you would like to buy a policy under the MWP Act.
- Then, provide the insurer with the necessary details, such as legal documents, beneficiary documents, and personal information.
- Once all documents are submitted, pay through net banking, debit, or credit card, and the policy will be bought under the MWP Act.
Conclusion
The main objective of buying a life insurance policy is to ensure your family’s financial well-being. What if your death claim does not reach your intended beneficiary? Therefore, buying a life insurance policy under the MWP Act is crucial to ensure that only your wife and children are entitled to claim death benefits.
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