New Delhi3 hours ago
So far more than 3.25 lakh people have lost their lives in the country due to Corona. In such a situation, in this difficult time, you can give financial protection to your family with term insurance. But the claim money may not be received by the nominee or the beneficiary (beneficiary). It may also happen that the insurance money can be received by a relative or the husband from where the loan or loan has been taken. To avoid these situations, the male insured should take a term insurance plan under the ‘Married Women’s Property Act, 1874 (MWP Act).
What is MWP Act?
The wife’s property is protected under the Married Women’s Property Act, 1874. This protection is available when the life insurance policy of the husband is forfeited to pay off the outstanding loan in the event of her husband’s death or insolvency. The benefit of the Addendum (MWP) of the Married Women’s Property Act is available on all types of life insurance policies. Only a married Indian can buy this type of insurance policy. Under this, on taking the policy, your nominee will get the cover money only.
How to take policy under MWP Act
One can take term insurance of any company, as well as online insurance planning can also be done under the MWP Act. When filling the form to buy any plan in husband or your family, see this question in it: I want to buy this policy under Married Women’s Property Act (1874).
Select ‘yes’ to answer this question. After this, the information of the beneficiary or trustee will have to be given. Like name, relation, date of birth, percentage of profit share etc. The husband can give the names of his wife and children in this. Multiple beneficiaries can be added at the same time. A married woman can also buy such an insurance policy in which the beneficiary can be her children.
Wife and children will get cover amount
The policy of insurance taken by a married man on his life should be ensured to be paid to his wife and children or any one of them. Apart from these, no creditor (lender or lender) of the husband will have any right over it.’ That is, under this act, the trustee of the husband’s insurance is his wife and children.
The policy taken under this is considered to be a trust.
A term policy taken under the MWP Act is treated as a trust. Only the trustees have the right over the benefit amount of the policy. In case of a death claim, the money received from the policy goes to the trust, which can only be claimed by the trustee. It cannot be claimed by any creditor or relative. The Trust reserves the claim amount for the wife and/or children only. In this way, the MWP Act secures the future of the wife and children.
MWP Act is very useful for borrowers
Businessmen and salary earners who have loans or other liabilities. People who want to protect their wife and children from creditors/relatives who may have deceitful intentions. The amount you can get from term life insurance can be huge, which can save the future of the family in the absence of the husband. Therefore, taking term life insurance under the MWP Act can prove to be a good decision for everyone.