The Married Women's Property (MWP) Act was enacted in order to protect properties owned by married women and children from creditors. Under this act, all properties owned by women would remain unattached, even when Courts and the Income Tax Department attach husband’s properties as liabilities. The properties are also protected in case of the untimely demise of husband, as banks cannot recover dues by liquidating assets. It is important for husbands to avail life insurance policy under the MWP Act, to protect the interests of spouses and children.
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All married men, including divorced and widowers, can avail Life Insurance Policy under MWP with their wife and/or children as beneficiaries. Married women can also avail MWP insurance with children being beneficiaries. Under this policy, the beneficiary cannot be the person himself.
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The husband’s role in this policy is to just pay premiums and mention the beneficiaries and trustees.
Any married man can take a life insurance policy under this act. You can also avail of term life plans. Following individuals must choose a life insurance plan under MWP act:
· Salaried employees who have taken loans against their name.
· Individuals who want to financially protect their family from creditors and relatives who can cheat your family in case of untimely death.
· All businessmen are advised to opt for a life insurance policy under MWP. Your business would go up and down. If you have taken loans against your business, in case of untimely death, government and creditors will look to liquidate the business and properties to recover dues. Availing life insurance under MWP would mean properties are not attached to creditors and courts.
You can avail of Life Insurance Policy under the MWP Act either offline or online. To apply offline, you can visit a branch of your insurer, and fill up the life insurance application form and you must also fill up the MWP form. You need to mention details of the beneficiary (that happen to be either your wife or children) and trustees if any.
Mentioning the trustee is mandatory if the beneficiary is a minor. To apply online, you need to log on to the insurer’s website and fill the online application form. On filling the online application form, you would be asked whether or not you want to avail of life insurance under WMP Act.
Availing a Life Insurance Policy under the Married Women’s Property Act would financially secure the family’s future when you are not around. The death benefits accruing out of this policy would be given only to the beneficiaries, mentioned by you at the time of availing insurance under the MWP Act. Creditors and relatives will not share in the death benefit. Courts cannot attach your assets on creditor’s behalf to repay loans.
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