Are you buying a life insurance policy to protect your wife and children financially, if you are not? But what if your wife and children do not get even one rupee out of income when they need it the most? This can happen if you have an ongoing home loan or a business that has debt. In such a situation, you can claim the amount attached by the creditors or the court for the repayment of your debts. But there is good news: You can avoid this by purchasing your life insurance policy under the Married Women’s Property Act, 1874.
What is the MWP Act (Married Women’s Property Act, 1874)?
Section 6 of this Act highlights its importance: “The policy of insurance by any married person affecting his life and it should be for the benefit of his wife, or his wife and children, or any of them. , To ensure and be treated as a trust according to the interests of his wife, or his wife and children, or any of them, and so long as any object of the trust remains, subject to the control of the husband , Or to his creditors, or to be a part of his property. “
Who can opt for insurance under MWPA?
If you are a resident of India and married, you can take an insurance policy under the MWPA. You can buy the policy if you are a widower or divorced – in such a scenario, you can name your children as beneficiaries. However, the benefit can be availed while taking the policy, and that too if you buy the policy in your name.
Whom can you name as beneficiaries?
The beneficiaries defined in the policy covered under MWPA can be your wife, your children or children alone or your wife and children together. As a policyholder, you can specify a specific percentage of the amount given to each beneficiary or divide it into equal amounts. However, once the policy is issued, you cannot change the beneficiaries. Therefore, when you appoint your wife as a beneficiary and if you later go through a divorce, your beneficiary (wife) will remain the same.
What else does MWPA do?
As a policyholder, you cannot take loans against policies that are supported under the MWPA. If you are surrendering the cash-value policy, then the income due to the surrender will go to the beneficiaries. In addition, if you are remaining with the policy term, the maturity income will be paid to your beneficiaries.
How to get an insurance policy under MWPA?
The process of obtaining an insurance plan under the MWPA is very simple. You have to fill an addendum with your insurance application at the time of taking the policy.
(Source: www.hdfclife.com)
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