Arnav purchased a property as a gift for his wife on her 30th birthday. He had applied for a bank loan and the loan was approved. Arnav paid his EMI every month on time. A few years later, Arnav got infected with the fatal COVID 19 virus and succumbed to it. The only consolation for his wife and children was that Arnav’s life insurance coverage would assist them to meet their financial obligations. However, they were in for a shock when the bank sought the court to claim the money proportional to the outstanding loan balance taken against the purchase of the property. In this scenario, life insurance under MWP Act plays a major role.
. The majority of people who purchase life insurance in India do so primarily to protect their family’s future. But are you sure if the insurance money will protect them after your demise? There is a way you can protect your family from such mayhem.
Have you heard about the MWP Act?
The MWP Act also known as the Married Women’s Property Act was implemented in the year 1874. This act aims to protect women’s property from relatives, banks and lenders and applies to married women of all faiths. According to Section 6 of this Act, the policy money will be given to the wife or kids of the deceased person and no creditors or court can claim the amount.
Beneficiaries of policies under the MWP Act
- Children including adopted
The two important steps involved while buying a second-hand bike are
- Transfer of ownership
- Transfer of insurance policy
Procedure to purchase life insurance under MWP Act
- When you decide to purchase a life insurance policy for your family, ensure that the policy offered comes under the MWP Act. The procedure is fairly straightforward. When purchasing the policy, you must fill out the MWP amendment form separately.
- Your wife should be added as the beneficiary. In this way, your wife will be able to claim the insurance amount to secure the future of the kids and herself, in case of your untimely demise.
- The beneficiary chosen during the purchase of the policy cannot be altered or changed even in case of a separation or divorce. When the policy matures, the beneficiary will only be allowed to claim the insurance money.
- If your wife (beneficiary) passes away before you, your kids or legal heir will be eligible to receive the claim amount. It is advisable to mention more than one beneficiary at the time of taking the policy.
Who can opt for the MWP Act?
- Salaried Men
- Anyone who would like to protect his wife and children from financial crisis
One step further
Once you have secured your family with a life insurance plan under MWP Act, the next important step is to e-Insure it. e-Insurance is a safe digital vault to secure your insurance policies digitally. By linking all your policies to your e-Insurance account, you can access them at your convenience.
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