A detailed guide on Life Insurance Policy under MWP Act
When there are several term insurance policies available, why should one think of choosing the term plan with the MWP act in insurance?
Here is a scenario to help you understand better the importance of a life insurance policy with the MWP act.
Forty-five years old Chandran is a family man and runs a business. To grow and support his business, he had to borrow some capital. At the same time, he also bought an insurance term plan under MWP Act 1874. Unfortunately, his sudden demise left his family members in a difficult situation. At the same time, the creditors started troubling his family members to repay the loan amount. But since Chandran took the policy with MWP Act 1874 features, his wife, the beneficiary, won the case and got the sum assured. This created financial security for his family.
Now, don’t you think that the married women’s property act included term plan can be of more significant effect compared to the other plans?
Here we see more in detail about the advantages and features of MWPA in insurance;
What is MWP Act (Married Women’s Property Act, 1874)?
The MWP Act was created to mainly protect the properties that are owned by women from their relatives and creditors. This will also include protecting her properties from her husband. The primary purpose of this act is to protect women’s rights, especially even after their marriage.
Section 6 of the MWP Act, covers life insurance plans too.
When an insurance policy is taken under the MWP Act, then it is treated as the TRUST. This will assure you that the policy money will be given to the nominee/ beneficiary specified on the document only. Moreover, the claim proceeds are absolutely free from the court, creditors, and tax attachments.
Who is eligible for an insurance policy under MWP Act?
Any married man can take this policy. This will also include divorced persons and widowers. However, this policy can be taken only in his own name. Any type of insurance plan, including term plan, money-back, and endowment plan, can be endorsed to be taken under this MWP Act.
A married woman is also eligible to take this MWP policy in her name and keep her children as the beneficiaries. In this case, her husband will not get any benefit from the policy. This will be, in other terms, considered as a separate asset for an unmarried woman.
What is required to buy this Term Insurance policy under the MWP act?
Getting your term insurance policy under the MWP Act is very easy. It will only need simple procedures.
- At the time of making your application, that is when you are in an attempt to buy your policy, there is a separate MWP Act form, which needs to be filled by you to get the policy covered under the MWP Act.
- It is essential to provide all the details of the beneficiaries, no matter one or more than one, between whom the benefit needs to be shared.
- It is also essential to provide the trustee’s name; however, not mandatory unless you are in need.
- At the same time, you should also remember that this MWP Act cannot be assigned to an existing insurance policy, which you already own.
- The beneficiaries of this life insurance policy under the MWP Act will be either your wife alone, your child or children alone, or wife and children together.
This is the best option for those into business or who live an insecure life. That is, in case you feel that your relatives may cheat you or threaten you against the property, then this policy can be bought under the MWP Act.
Key highlights of the MWP Act included Term Plan
- This is the best plan to give better protection to your family when compared to any other policy.
- This is best for those with the burden of debts and who want to save their family from any unforeseen financial uncertainty.
- This policy best suits both businessman and salaried employees.
More about MWP Act Term Policy
- It is not possible to take a loan against the policy endorsed under MWP Act.
- If a cash-value policy is surrendered, then the proceeds due upon the surrendering will go to your beneficiaries.
- At the same time, if you survive the complete policy term, then the maturity proceeds will still be paid to the beneficiaries only.
Pros and cons of MWP Act Term Plan
After understanding all the significant advantages of this MWP Act endorsed term plan, here are a few final pros and cons that you should know:
- The policyholder’s family is getting the priority with this plan
- MWP Act applies to all married women from all religions
- This insurance coverage can protect the family financial need and security
- There is no need to create a separate policy for your children
- This MWP Act endorsed policy will empower women by providing them utmost financial security
Undeniably, this MWP Act term plan is the best option for a family man who wants to secure his family with complete financial protection. This brief about the policy would have now given you a better idea about how effectively it can help you and your family. So wait for nothing, start your action right away, and provide complete protection to your wife and children.