MWF(Married Women's Fund)
What is the MWP Act?
Under this Act, Section 6 provides that if a married man takes out a life insurance policy in his own name and specifically mentions that it is for the benefit of his wife, or wife and children (or any of them), then such a policy will be treated as a trust. This means the policy is legally considered to be held for their benefit.
How does the MWP Act protect my family?
A term insurance policy purchased under the purview of the Married Women’s Property (MWP) Act is legally considered a trust. In such a case:
- Only the trustees have complete control over the policy, including servicing and receiving the claim proceeds.
- In the event of a death claim, the policy amount is received by the trust and held exclusively for the benefit of the wife and/or children.
- The proceeds cannot be claimed by creditors, relatives, or included in the proposer’s estate or will.
- This ensures that the financial security of your wife and children remains fully protected.
How do you buy term insurance under the MWP Act?
While you are buying the plan, in the application form, you will see this question: I would like to buy this policy under the Married Women's Property Act, 1874.
Just select "YES" for this question. Once selected, you will have to enter the beneficiary and trustee details e.g. the beneficiary name, relationship, date of birth and benefit share (in %). You can only choose your wife/child/children as beneficiaries. You can add multiple beneficiaries.
Who should opt for the MWP Act?
- Business owners or salaried individuals with loans or liabilities to safeguard their family from creditors in case of debt.
- People who want to protect their wife and/or children from possible claims by relatives or others with fraudulent intentions.
- Anyone purchasing term life insurance – since the benefit amount is usually large enough to secure the financial future of loved ones, opting for coverage under the MWP Act ensures that only the wife and/or children receive the proceeds.