When buying a term insurance policy, you aim to secure the future of your wife and children in your absence. You want that the claim amount reaches them quickly and without any hassles. Simply buying a term insurance policy alone will not inevitably ensure that your beneficial nominees can get the sum assured after your demise. There is way to secure the claim from your term insurance by MWP act. Buy term insurance under the Married Women’s Property(MWP) Act.
Your term life insurance claim money may not reach your nominee or beneficiary on time
Under MWP act, Section 6 highlights its importance, “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 to his creditors, or form part of his estate.”
This act protects that the sum insured might be claimed by miscreants or beneficiaries such as creditors or any other family members.
This Act basically works as a safeguard from the repayment of loans, extended family members or any other creditors who might claim the money after the demise of the policyholder and guarantees that the financial future of his spouse and children is protected. In a normal term insurance policy, that is, a policy which is not bought under the MWP (Married Women’s Property) Act, the sum insured might be claimed by miscreants or beneficiaries such as creditors or any other family members who can lay a claim to the policy benefits.
Whether you buy a term insurance policy under the MWP Act or not, the term insurance policy features, benefits and other terms and conditions remain the same.
Who should opt for MWP Act?
- Business people and salaried individuals with loans or liabilities.
- People who want to protect their wife/child(ren) from creditors/relatives who might have fraudulent intentions.
- The benefit amount with term life insurance can be a huge sum enough to protect your loved ones’ future in your absence financially. So it will be the ideal decision if everybody who is buying term life insurance chooses to protect their loved ones under the MWP Act.
The beneficiaries can be:
- The wife alone
- The child/ children alone (both natural and adopted)
- Wife and children together or any of them.
How to get a plan covered under the MWP Act?
At the time of making the application, a separate from has to be filled by the proposer for it to be covered under MWP Act. The form will seek details of the beneficiaries, the share of the benefits that are to be accrued to them and the trustees.
Select “YES” for I would like to buy this policy under the Married Women’s Property Act (1874) in your term insurance form
https://www.iciciprulife.com/term-insurance/mwp-act-term-life-insurance-plan.html
https://www.iciciprulife.com/term-insurance/mistakes-to-avoid-while-buying-a-term-plan.html