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By purchasing a term insurance policy under the Married Women’s Property Act 1874, a married male policyholder can safeguard their family’s financial interests in their absence.
The Act safeguards married women’s financial rights. (Representative image)
The primary goal of purchasing a term insurance policy is to protect your family members’ futures in your absence. According to the Married Women’s Property Act (MWPA), 1874, you can get a term insurance policy if you are married and want to safeguard the future of your spouse, child, or both.
What Is the Married Women’s Property Act (MWPA)?
“A policy of insurance effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them according to the interests so expressed, and shall not, so long as any object of the trust remains, be subject to the control of the husband, or his creditors, or form part of his estate,” Section 6 of this act emphasises its significance.
How is your family protected by the MWP Act?
According to the MWP Act, the term policy will be regarded as a trust. The insurance, including servicing and benefit amount receiving, will be under the sole discretion of trustees. The policy proceeds are received by the trust and are only available to the trustees in the event of a death claim. It cannot be included in the proposer’s will (estate)*, nor can it be claimed by creditors or family members. For the benefit of the wife and/or child(ren), the claim proceeds will be held in trust. Your wife and kids’ financial future is so safeguarded.
For example, in the event of your death, your creditors will be the first to collect the assets of your insurance if you are a salaried individual with a home or personal loan, or if you run a business and have accrued obligations. Your wife and/or child(ren) will be the only ones to access the claim amount when you get term insurance under the MWP Act, allowing you to financially safeguard their future.
For whom is the MWP Act appropriate?
– Business owners and salaried persons who have debts or obligations.
– People who desire to protect their spouse or children from family members or creditors who might be dishonest.
– The benefit amount from term life insurance might be a substantial amount, sufficient to safeguard your loved ones’ financial future in the event of your absence. Therefore, it would be the best course of action for everyone purchasing term life insurance to opt to safeguard their loved ones under the MWP Act.
- Location :
Delhi, India, India
