What is MWP Act in Insurance – Married Women’s Property Act?

MWP Act in Insurance: After the Corona epidemic, both people’s attitude towards health insurance and their mindset have changed. Cashless benefit is available in most of the medical insurance. Since medical expenses have increased a lot, it is very important to take health insurance for the safety of yourself and your family. You get double benefit by buying this policy. Firstly your medical cost decreases and secondly it helps in saving tax. If you have adequate coverage, you can live your life in peace.

And who knows what will happen in the coming time, in such a situation, along with worrying about the future, we also start worrying about our family after our departure. Worrying about the wife and children at home puts us in a state of tension.

In such a situation, it is very important to protect the wife and children after one’s departure. As such, we buy insurance to avoid future risk. But has your insurance been bought under the MWP Act?

If you buy any insurance, then you should buy that insurance under the MWP Act. Because we get many benefits of buying insurance under the MWP Act. Let us know in detail about the MWP Act.

MWP Act in Insurance

The full form of MWP is “Married Woman Property”. Insurance taken under the MWP Act is called Port Trust. Whenever you take insurance, write yes in place of MWP Act.

So that the insurance you have should be taken under the MWP Act. Its advantage is that the insurance money goes to one of your nominees. You can make your child or wife a nominee. Many times it is seen that the policy holder dies at such a time. When he is also in debt to many other people.

In such a situation, the borrowers also start demanding their money. If you buy insurance under the MWP Act. So no one other than the nominee can claim this money or else you have taken a loan and you die after taking the loan.

So the bankers will not use this insurance money to repay the loan. Hence taking insurance under the MWP Act is beneficial. So that your money remains with your relatives and no one else can share it.

In the insurance policy taken under the MWP Act, your family gets financial security after your departure. And your family cannot be forced to pay any loan with your insurance money.

MWP Act Beneficiary

Friends, under the MWP Act, apart from your wife, you can also make your child a beneficiary. By the way, the name of the act is Married Woman Property. But under this you can also nominate your children. Even if your child is adopted.

In case of your death, the insurance cover is provided to the nominees only. Apart from these, no one can become a claimant of this cover. You can make wife or children as beneficiaries as per your wish. You have the option of choosing the beneficiary. You can choose anyone as beneficiary of your wish.

Understand – MWP Act in Life Insurance

Insurance is recognized as a trust under the MWP Act. Whatever insurance claim is provided after the death of the policy holder. Only the nominee, the relative of the insured has the right on it.

After death, no matter how much loan or any other type of debt the deceased may have. But legally this amount will be only of the trustees. No relative or creditor or any bank can claim on this. Along with taking insurance under the MWP Act, you also enhance the security of your family in your absence.

In other types of insurance, banks and loan givers also start demanding their rights. But MWP provides a protection to your family. So that after your departure, they continue to get financial help.

For example suppose if you are a salaried person. And you have taken loan from any bank. You died without paying the loan debt. In such a situation, the lender will have first claim on your policy amount and your family will not receive anything from the policy amount.

If you get your insurance done under the MWP Act, then no other party can claim your money in this situation. That’s why MWP Act has great importance in insurance.

If you are insured under the MWP Act. So in this situation, the person who has made you a nominee or a trustee will be entitled to this amount.

What is MWP Act in LIC

So friends, while buying insurance from any insurance company, you can buy insurance under the MWP Act. LIC company also provides insurance under MWP Act. Because this act is not for any particular company.

It is a simple act. Which is considered by all companies, and you can choose an insurance policy under the MWP Act while buying any policy.

MWP Act Pros.

Under the mwp act, the insurance policy is considered a separate trust and while buying the policy, you also have to give information about the national. You can choose your wife, children or any other third person as a trustee.

You can choose the trustee as per your wish. Because after your death the insurance cover will be provided to the trustee only. Apart from this, the person taking the insurance also has the option of changing the trustee at any time.

You can also change the trustee as per your wish. But remember that the beneficiaries of the declared scheme cannot be changed by the proposer at any point of time.

MWP Act Cons.

Every coin has two sides, similarly there are some disadvantages of MWP Act as well. Let us know about the disadvantages of buying insurance under MWP Act.

If you have declared your policy plan. So now the beneficiaries cannot be changed even if you want to. At some point you decide to change beneficiaries. If you sign the MWP Addendum, this will not be possible.

It is seen that the attitude of people towards the elderly keeps on changing, in such a situation the idea of changing the trustee also comes to mind. So we get to see the loss of not changing the trustee under the MWP Act.

Another type of problem with buying insurance under the MWP Act is that you cannot be given a loan against the policy. The policy cannot be used as security against the loan.

What is Section 5 of MWP Act

There are several terms and conditions that you should go through thoroughly while buying the Married Women’s Property Act. Because the terms and conditions directly affect your insurance policy. And later you should not have any kind of inconvenience. For this you should know about all the terms and conditions in advance.

A married woman can affect the policy of insurance under the Married Women’s Property Act.

Section 5 of the Married Women Property Act states that “a married woman may effect a policy of insurance on her own behalf and independently of her husband; and the same and all his benefits, if expressed as to its effect, shall be ascertained as his separate property.

and a contract certified by such policy shall be as valid as if made with an unmarried woman.

MWP Act in India

The Married Women’s Property Act was enacted in India in 1874. The Married Women’s Property Act, also known as the MWP Act, aimed to protect the property owned by women from their relatives, creditors, and even their own households.

Under the MWP Act, a married man can buy an insurance policy in his own name and nominate his wife or his child as a trustee. Under the MWP Act, there is a provision that after your death no one except the trustee can claim this sum assured. Any type of scheme can be supported to get covered under the MWP Act.

Bottom Line:

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FAQs on MWP Act