MWP Act - Marriage Women's Property Act in Term Life Insurance
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?
  • 17th Jun 2022 |
  • 18,846

We all know that safeguarding women’s rights and interests have always been crucial in any society. The Married Women’s Property Act (MWP Act), 1874, was also enacted for similar reasons.

Most people believe that buying a life insurance policy will ensure the well-being of their family, spouse, and children in case of their unfortunate demise. But what if you have significant unpaid debts left behind you? This is where the MWP Act in insurance comes into play - to protect the financial rights of your wife and children.

Now you must be thinking about what is MWP Act, how it will help in safeguarding your wife and children, etc. Let’s understand in detail what the MWP Act is, its pros & cons, and how it secures your family.

What Is the MWP Act?

The Married Women’s Property Act (MWP Act) is an Act that states that an Indian married woman’s earnings are her own property. This act is included in the life insurance policy bought by any man and mandates that the money received by the wife from the policy is her property and cannot be used to repay the husband’s liabilities.

How Does the MWP Act Protect Your Family?

Under the MWP Act in insurance, only your wife and children can lay a claim on the policy proceeds. No other relative, heirs, or creditors can stake a claim on the money. When compared to other policies, the creditors can claim the money from the proceeds if you have debts and loans to your name. But under the MWP Act, the rules are different. Even though you may have debts, your family would be financially secure.

For example, as an individual breadwinner for your family, suppose that you are a salaried employee with a home/personal loan or a business owner with debts. In the case of your demise, your creditors and lenders will have the first claim on the proceeds of your term life insurance policy. This will leave your family, wife, and children financially unstable.

However, when you buy the policy under the MWP Act, then only your wife and children will be able to make claims on the policy process of your term insurance. The nominees mentioned in the MWPA insurance remain unchanged for the whole policy tenure.

Additionally, this is a great tool to empower the claims of your wife and children on the proceeds, even if there are other factors that could have influenced the proceeds of the sum insured, like a joint family setup and other outside factors.

Who Should Opt for MWP Act?

Any salaried individual can buy a term insurance policy under the MWP Act. If you are a widower or a divorcee, you can still name your children under this Act. You can nominate only your wife and children, and no other family member or heir would be able to lay a claim. But the beneficiary cannot be changed later even if you end up divorcing your wife.

How to buy term insurance under the MWP Act, 1874?

Buying your term insurance plan under the MWP Act, 1874 is quite a simple process.

  • When you are filling out the insurance paper, you will find a question that if you wish to purchase term insurance under the MWP Act.
  • You must select ‘Yes’ as your answer.
  • If you select the option, then you will have to provide information regarding your nominee, which includes name, date of birth, your relationship with the nominee, and the percentage of share
  • The policy under the MWP Act only allows your wife and children to be your nominees in insurance policy.

Who all are covered under the MWP Act?

The MWP Act India allows you to buy a term plan that covers the financial requirements of your family in case something unfortunate happens to you. The nominees under the Act can be:

  • Only your wife
  • Only your children (both natural, as well as. adopted)
  • Your wife and children together

When you are buying the policy under this Act, you can also add trustees. According to the MWP Act in insurance, the trustees can be multiple people, including any of your nominees or a financial institution/bank. It is not mandatory to include any trustee in the form, and you can change the trustees at any time. If you choose to have trustees, then you have to provide proof of their consent along with the insurance form papers.

Illustration for a better explanation

Mr. Roy had bought a term insurance plan under the Married Women’s Property Act in India and added his wife and children as nominees. When he had suddenly passed away, the lender of his home loan demanded that their dues are paid using the sum assured received from the term insurance policy. The case was taken to court, and the verdict was given in favor of the family. The MWP Act made sure that the wife and the children receive the money.

The purpose of the term insurance plan is to financially protect the family after the policyholder’s death. The MWP Act, 1874 ensures that even more effectively.

Pros and cons of the MWP Act

Pros

  • The needs of the policyholder’s family are given priority
  • The MWP Act India is applicable to every married woman respective of their religion
  • The term insurance cover is used to protect the needs of the family and not for any other purpose
  • There is no requirement of creating a trust separately for your children
  • The Act helps women empowerment by providing them with financial security

Cons

  • The policyholder’s debt cannot be paid with the cover
  • There is no option to change beneficiaries
  • The policyholder needs consent from the adult nominees in writing to make any changes to the policy
  • The risk of misuse is higher

FAQs on MWP Act

1. Under the MWP Act, can I assign or take a loan on my policy?

No, you cannot assign someone else or take a loan against the policy if your insurance plan is covered under the MWP Act.

2. Can I surrender a policy that is covered under the MWP Act?

Yes, you can surrender the policy, but it has to be signed by the beneficiaries. The proceeds of the policy will be given to the policyholder for the benefit of the beneficiaries.

3.Can I change the beneficiary of the policy, If I nominate my wife as the beneficiary, but we end up divorcing each other?

No, you cannot change the beneficiary once you have opted for one already under the MWP Act.

4.What if my wife is the beneficiary of the policy, but she passes away before me?

In the event of your wife’s death, your legal heir will receive the proceedings of the policy. But it is recommended to nominate more than one beneficiary.

5. Can I have more than one plan under the MWP Act?

Yes, you can have more than one insurance policy under the MWP Act, but they have to be registered separately under the Act.

6. Can I nominate my parents as beneficiaries under the MWP Act?

No, your parents cannot be nominated as the beneficiary. The MWP Act only covers your wife and children.

7.Can I assign an existing life insurance policy under the MWP Act?

No, you cannot assign an existing insurance policy under the MWP Act. If you want to assign any policy, it has to be done at the time of purchase.

Now that you know and understand MWP Act, it is time that you ensure that the term insurance policy you are planning to take has these clauses mentioned. This way you can ensure that your wife and children rightfully get the process of your life insurance. Not only that, these proceeds will help your wife and children sustain a stable financial life.

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Is It Time to Review Life Insurance Policy of Yours?

A Step-by-Step Guide: How To Make An Investment Plan?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Why Your Family Should Know About Your Life Insurance Policy?

Adding A Child to Your Life Insurance Policy?

FAQs on Life Insurance

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Why One Must Buy Term Insurance before 25 Years

What is Human Life value and a Human Life Value Calculator?

Is it Worth Buying Disability Rider on Term Insurance?

How to Buy a Term Life Insurance Online

Difference Between Money Back and Endowment Policy

How to Choose the Right Life Insurance Policy for Your Age?

Biggest Life Insurance Myths

Why is Medical Test Important While Buying a Term Insurance?

How Much Life Insurance Do You Need?

How to Calculate Human Life Value(HLV)?

Is Life Insurance an Investment?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Does Life Insurance Policy Cover Covid Death?

What is the Difference Between Limited and Regular Pay Insurance Plan?

What are robo-advisors in insurance?

What is Sum Assured in Endowment Policy?

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Life Insurance Plans for Women

Why Do Life Insurance Agents Avoid Selling Term Plans?

Life Insurance for Millennials

Guide for Buying Online Term Insurance Plans for Senior Citizens

Types of Life Insurance Policies in India

Life Insurance Beneficiary

What is the Current Trend in Term Insurance?

What are the Benefits of Endowment Policy?

Does Family History Affects your Term Life Insurance Rates?

What Is Insurance Rider and It’s Benefits?

Insurance Vs Investment - A Guide to Your Financial Goals

What is Underinsurance & The Dangers of Being Underinsured

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Benefits of Term Insurance with Critical Illness Rider

What Is Insurance Coverage?

How Many Insurances Should I Have?

Terms and Conditions of Term Insurance Plans

Life Insurance Policy Closure

Important Terminologies of Life Insurance

Best Insurance Plans in India

Take 100% Responsibility of Your Family with Term Life Insurance

When Should You Review Term Life Insurance of Yours?

Why You Should Never Cancel Life Insurance Policy

How Do Term Insurance Plans Differ for Smokers?

Do Life Insurance Premiums Increase Every Year?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

What Is Investment Insurance?

How To Use Different Types Of Life Insurance For Retirement Planning?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

Digital Life Certificate for Pensioners Seeking Pension

5 Easy Steps to Buying A Policy

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Think About Life Insurance Sooner than Later

Can a Term Plan be the Substitute for a Retirement Plan?

Most Common Life Insurance Riders to Enhance Your Existing Policy

6 Things You May Not Know about Life Insurance

“Life” Insurance or “Death” Insurance?

Details Required To Be Filled In A Life Insurance Form

Is Return-of-Premium (ROP) in Life Insurance Worth It?

Is Life Insurance For Millennials Really Needed?

भारत में जीवन बीमा पॉलिसियों के प्रकार

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

How to Find the Best Term Insurance Plan in Seven Steps

Insurance Changes You Need to Make Post Marriage

In India, should NRIs purchase life insurance?

Kotak Life Claim Settlement Ratio

All about IRDAI

How to Buy a Life Insurance Plan?

How to Make Death Claims on Life Insurance?

Term Insurance Vs Life insurance: Small Details, Big Differences

ULIPs: Suitable for all

Life Insurance Vs. Mutual Funds Investment

Various Term Insurance Premium Payment Options Available in India

What is Minimum Life Insurance Policy?

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Role of IRDAI in the Insurance Sector

Key Things to Review in Your Life Insurance Policy Document

Important Life Insurance Terms You Must Know

What Should One Expect During the Medical Evaluation for Life Insurance?

Loan Against Life Insurance Policy

Life Insurance and Millennials

Difference Between ULIP and Endowment Plan?

All About Life Insurance and How It Works?

7 Superficial Reasons People Avoid Buying Insurance Online

Compare Different Life Insurance Products Offered By Kotak Life

Why Term Insurance for Women is Important?

Reasons Why Term Insurance Claims Get Rejected

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

5 Common Life Insurance FAQs and Answers

10 Most Frequently Asked Questions - FAQs on Term Insurance

Different Types Of Life Insurance In India

Who Is A Nominee In A Life Insurance Plan?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Always keep your Nominee informed

Term Insurance Claim Process

How to Choose a Life Insurance Policy

What Is Financial Planning?

Do Your Financial Planning with Life Insurance!

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Term Life Insurance Vs Money Back Life Insurance

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Why Buying a Term Insurance is Important for all Parents

5 Reasons Why a Women Should Buy a Life Insurance

Types of Life Insurance Or One Investment, Many Options

All about Life Insurance Calculators

What is Group Insurance?

What Is Staggered Payment Option Under Term Insurance Policy?

Why do most Indians choose the wrong way to buy life insurance?

What is Life Insurance?

5 Things to Consider Before You Buy Life Insurance

What is a savings plan?

Choosing Between Short-Term & Long-Term Insurance Plans

How Much Life Insurance Cover Do I Need?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

5 Smart Steps to keep in mind while buying term policies

Life Insurance with Money Back vs Without Money Back

Does Life Insurance Cover Terminal Illness?

Nominee in insurance - A Complete Guide on nomination in insurance

All About Backdating in Life Insurance

All about Your Rights and Duties While Buying Life Insurance Policy

How to Customize Your Life Insurance Policy with Riders

5 Advantages of Life Insurance Going Digital

Does Life Insurance Pay for Suicidal Death?

6 Different Types of Insurance Policies

Life Insurance and Retirement Planning

How to Choose Life Insurance for All Ages?

Can An Individual Buy Multiple Term Insurance Plans?

Can NRI Buy Life Insurance in India?

Top 5 Common Life Insurance Myths and Facts

Why Life Insurance Is Always a Smart Decision

Beware of Phishing & Fraud Insurance Calls

How Often You Must Review Your Life Insurance Policy?

5 Ways to ensure faster settlement of claims

Can You Transfer Life Insurance Policies to Another Company in India?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Customer Awareness on Information Security

What Is the Procedure to choose a nomination in life insurance policy?

Choosing a Life Insurance Beneficiary

What is a Single Premium Term Plan and its Tax Benefit?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Life Insurance for Overweight Applicants

Guidelines for Linking Aadhar and PAN to Insurance Policies

How Does Life Insurance Work?

Everything You Must Know About ULIP Riders

5 Reasons Why You Need Life Insurance in College

Why Online Term Insurance Plans Cheap?

Should you buy a Renewable Term Life Policy?

Is It Advisable To Have Multiple Life Insurance Policies?

Why do I Need Life Insurance?

Term Life Insurance vs. Accidental Death Insurance

First Job? Here’s Some Tips on How to Manage Finances

5 Things to Keep in Mind While Buying Life Insurance Policy

Different Types of Insurance Policies in India

Why Renewal of Term Insurance Plan is Important

Staying Insured While Investing

Important Features of a Term Insurance Plan

Life Insurance vs Mutual Funds

Process of Filing A Claim For Life Insurance

Term Insurance Tips for NRIs in India

Difference Between Insurance and Assurance?

Voluntary Life Insurance Policy Vs Group Life Insurance

How to Revive the Lapsed Life Insurance Policy?

Sabse Pehle Life Insurance

What Happens If I Stop Paying My Life Insurance Premium?

What Is Social Impact Investing and How Does It Benefit Society?

Choose the Nominee of a Term Life Insurance Plan Wisely

Life Insurance vs Health Insurance

Choosing the Right Life Insurance

Difference Between Term Insurance and Endowment Plan

When are Millennials required to take out a life insurance policy?

What Is a Whole Life Insurance Plan?

A Term Insurance Guide for Disabled People

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

Health Insurance VS Life Insurance

NRI Premium Payment Options

Types of Insurance You Must Invest in for Secure Future

What is an Endowment Plan?

4 Benefits of Gifting Life Insurance Cover to Your Spouse

Life Insurance for Overweight Applicants