Learn How To Buy Life Insurance Policy Under Married Women's Protection Act
Updated On Mar 12, 2022
If you get a life insurance policy under the MWP legislation, you ensure that the policy's amount assured will solely go to your wife and children. It ensures that their needs come first and foremost. The sum cannot be claimed by third parties such as creditors, families, and so forth. This is due to the fact that once the insurance you acquire is obtained under the MWP statute, it cannot be seized by the court for repayment of any existing debt. Thus, a life insurance policy under the Married Women's Property Act 1874 protects your wife's and children's financial interests even after you die.
How To Purchase a Life Insurance Policy Under the Married Women's Protection Act?
Here's how to get a life insurance policy via the Married Women's Protection Act:
According to the MWP Act, the term policy will be considered as a trust. Only the trustees will be able to make decisions about the insurance, such as how it is serviced and how much money is paid out. The trust receives the insurance money in the case of a death claim, which may only be claimed by trustees. It cannot be claimed by creditors or family members, and it cannot be included in the proposer's will (estate). The profits of the claim will be placed in a trust for the wife and/or kid (ren). As a consequence, the financial prospects of your wife and children are safe.
Advantages of Purchasing MWPA
Some of the MWPA's advantages are as follows:
1. Survival Advantages
Even if the policyholder survives the policy term, any insurance payments (if any) are transferred to the beneficiaries listed in the MWPA policy. The policyholder receives the survival benefits for life insurance plans that are not approved by the MWPA.
2. Requirement for Less Paperwork
The beneficiaries instantly become trustees under the MWPA without having to go through the formal procedure of drafting a settlement document or a trust.
3. Rights Are Protected
Other joint family members, such as the husband's parents, siblings, or relatives, are not eligible for policy benefits. The policy's maturity profits are payable to the wife and/or children, whoever was designated as the policy's beneficiary at the time of purchase.
Beneficiaries Under the MWPA Can Be Changed
Beneficiaries for non-MWPA life insurance plans can be altered at any time. Divorce, family settlements, separation, and other life events may necessitate a modification in the policyholder's beneficiary list. Beneficiaries, on the other hand, cannot be altered or amended at a later date under MWPA regulations. Even if the beneficiaries specified in the will divorce, the beneficiaries named in the will survive.
You should bring your family's policy under the Married Women's Property (MWP) Act to safeguard them from a circumstance like this. This ensures that the funds be distributed to the dependents rather than the creditors at the death of the life guaranteed. There is a misunderstanding. Even in the insurance industry, few individuals are aware of the provisions of the MWP Act. The proposers lose control of the plan after it is protected by the MWP Act and are unable to update or change it.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.