Consider the case of Mr. Rajesh Sharma who had bought a term insurance plan to financially secure his family. However, his wife and children did not get any money upon his death. This happened since Mr. Sharma’s money was claimed by his creditors for repayment of his debt for an active home loan.

You can ensure the financial protection of your family by buying a life insurance policy under the Married Women’s Property Act, 1874. Protection under MWPA act can be opted for only at the time of purchase of the policy and not at a later date.

What is the Married Women’s Property Act?

The Married Women's Property Act, 1874 (“MWPA”) came into effect to help secure the assets owned by a woman against her husband, his creditors and relatives. MWP act is applicable for all married women of all religions.

As per Section 6 of the Act, “a policy of insurance will come into effect by any married woman on her own behalf and freely of her husband. Moreover, all the benefits, therefrom, if expressed on the face of it to be so in effect, must make sure as her discrete property, and the agreement evidenced by this policy must be valid as if made with an unmarried female.”

List of Plans Covered Under Married Women’s Property Act, 1874

Insurers	Term Plan	Claim Settlement Ratio	Max Maturity Age	Premium (for a cover of 1 crore)
ICICI Prudential	iProtect Smart Lumpsum	98.6%	85 years	Rs. 1017/month
HDFC Life	Hdfc Click2 Protect 3D Plus	99%	85 years	Rs. 1023/month
Max Life	Online Term Plus One Time Lumpsum Plan	98.7%	85 years	Rs. 914/month
Aegon Life	iTerm	96.5%	100 years	Rs. 828/month
Tata Aia	Tata Sampoorna Raksha Lumpsum	99.1%	100 years	Rs. 1001/month
PNB Metlife	Mera Term Plan-Full Lumpsum payout	96.2%	99 years	Rs. 955/month
Kotak Life	Kotak e-Term Plan	97.4%	75 years	Rs. 976/month
Aditya Birla Sun Life Insurance	ABSLI DigiShield Plan	97.1%	85 years	Rs. 1037/month
Aviva Life Insurance	Aviva iTerm Smart	96%	80 years	Rs. 842/month
Aegon Life	iTerm Life Protect	96.5%	100 years	Rs. 757/month
Aviva Life Insurance	iLife Total Protect	96%	75 years	Rs. 971/month
Edelweiss Tokio	Zindagi Plus+ Lump sum	97.8%	80 years	Rs. 780/month
Reliance Nippon Life Insurance	Reliance Digi-Term	97.71%	75 years	Rs. 890/month
Reliance Nippon Life Insurance	Enhanced Life Secure	97.71%	75 years	Rs. 1414/month
IDBI	IDBI Federal iSurance Flexi Lump Sum Plan	96.2%	80 years	Rs. 1013/month
Bajaj Allianz	eTouch Lump Sum	95%	75 years	Rs. 1128/month
Exide Life	Exide Life Smart	97%	65 years	Rs. 1331/month
India First	e-Term Plan	94.2%	75 years	Rs. 780/month
DHFL	Pramerica Life	96.6%	75 years	Rs. 912/month
Canara HSBC OBC Life Insurance	iSelect Lumpsum	95.2%	75 years	Rs. 796/month
SBI Life	Poorna Suraksha	96.8%	65 years	Rs. 2987/month
Future Generali	Future Generali Flexi Online Term-Lumpsum	95.2%	75 years	Rs. 885/month
SBI Life	eShield	96.8%	80 years	Rs. 1125/month
Bharti Axa	online term + Lumsum	97.3%	85 years	Rs. 900/month

How does MWP Act Protect my Family?

If you are a salaried person with a home/personal loan or the owner of a firm and have accumulated liabilities in the form of debt, your creditors will have the first claim on your policy proceeds in the event of your death.

The term policy under the MWP Act will be considered as a trust. In case of a death claim, the proceeds are handled by the trust and can only be claimed by the trustees. It cannot be claimed by creditors, relatives or form a part of the will. The trust shall be holding the claim proceeds for the benefit of the wife and/or child(ren). Hence, the financial future of your wife and children is protected.

When you buy term insurance online under MWP Act, your wife and/or children will be the only ones who will have access to the claim amount – enabling you to secure their future financially.

The beneficiaries (wife and/or children) once mentioned in the policy remains unchanged throughout the term. 

Who Should opt for MWP Act?

• Businessman and salaried individuals with loans or liabilities.
• People who want to protect their wife/children from creditors/relatives who might have fraudulent intentions.
• People who live in a joint family setup where there could be several complications in the ownership of property and money. 

Married Women’s Property Act - FAQs

Q: Can I assign a policy under MWP Act?

Ans: No, a policy covered under MWP Act 1974 cannot be assigned to someone else.

Q: Can I take loan under a policy under MWP Act?

Ans: No, a loan cannot be taken under a policy covered under MWP Act 1974. 

Q: What happens if my term insurance contract is covered under MWPA act and my wife passes away before me?

Ans: If your beneficiary (wife) passes away before you, the legal heir of the policyholder shall be eligible to receive the claim amount. 

Q: Can I have more than one plan under MWPA?

Ans: Yes, you can have more than one plan under the MWPA act.

Q: Can I assign my existing life insurance policy under MWPA act?

Ans:No. Once a policy has been issued, it cannot be assigned under MWPA at a later date. You have to opt for MWPA only at the inception.