How Married Women’s Property (MWP) Act Protects Financial Future of Woman
The primary purpose of life insurance is to provide financial protection to your loved ones even when you will not be there for them. If you’re married and want to secure the future of your better half then you can get a term insurance policy under MWP act.
What exactly is the MWP Act??
When a person buys insurance, he/she makes someone mostly a family member nominee for the insurance. The nomination does not guarantee that the nominee will be able to access all the benefits when MWP Act comes into the picture.
It is said in the law that “a policy of insurance effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them according to the interests so expressed, and shall not, so long as any object of the trust remains, be subject to the control of the husband, or his creditors, or form part of his estate”.
It encompasses various provisions such as protecting women's assets from creditors' claims on their husbands' debts, defining and safeguarding "stridhan", and ensuring women's rights in cases of divorce, separation, or widowhood.
Who Can buy Insurance under MWP Act
Married Men: they can purchase insurance policies for the benefit of their wives. They can take out policies on their wives' lives and designate them as beneficiaries to provide financial protection in case of unforeseen events such as the husband's death or critical illness.
Married Women: they can purchase insurance policies on their own lives or on the lives of their husbands, children, or any other individuals, with themselves named as beneficiaries.
Benefits of buying Insurance under MWP Act
- Asset Protection: One of the primary benefits of buying insurance under the MWP Act is asset protection. Policies purchased under this act are considered the property of the married woman, safeguarding them from the claims of creditors or legal proceedings against her husband.
- Safety from Family Dispute: the act clearly claims that the beneficiaries of the insurance claim will be the wife and its children. This can decrease chances of dispute among family members.
- Financial Security for Women: Insurance policies purchased under the MWP Act provide financial security directly to the married woman. This ensures that she has access to funds in case of unforeseen events such as the death or critical illness of her spouse.
- Estate Planning Benefits: Insurance policies purchased under the MWP Act can be a valuable tool for estate planning. Married women can use these policies to create a financial legacy for their heirs, provide for their children's education, or ensure inheritance for future generations while maintaining control over the policy.
Challenges Faced during buying insurance under MWP Act
While the Married Women's Property (MWP) Act provides significant benefits and protections for individuals purchasing insurance, there are also challenges associated with buying insurance under this act.
- Limited Awareness: Many people, especially in certain regions or communities, may not be aware of the provisions and benefits of the MWP Act. This lack of awareness can result in missed opportunities to utilize the Act's protections and advantages when purchasing insurance.
- Availability of Products: Not all insurance products may be available for purchase under the MWP Act, or certain insurers may have specific requirements or restrictions. Limited availability or options can pose challenges for individuals seeking to purchase insurance under the Act.
- Complex Legal Procedures: The legal procedures involved in purchasing insurance under the MWP Act can be complex and require careful consideration. Individuals may need assistance from legal professionals to understand their rights, obligations, and the implications of selecting different options under the Act.
Conclusion
Life insurance acts as a safety net, providing financial support to loved ones when we're no longer there. But for married women, traditional life insurance policies can sometimes leave their financial future uncertain. This is where the Married Women's Property (MWP) Act emerges as a powerful tool.
The MWP Act ensures that life insurance policies purchased under its provisions become a legal trust specifically for the benefit of the wife and/or children. This bypasses the standard nomination process, safeguarding the payout from creditors or even the husband's estate.
