- Rs. 1 CroreTerm Cover @Rs 16/Day
- Tax BenefitsUnder Section 80C & 10(D)
- Extra BenefitsAccidental, Terminal & Critical Illness
- 7 Lac+Families Secured
Married Woman Property Act, 1874
- DetailsWritten by PolicyBazaar -
- Hits : 3061 -
Updated date : 11 December 2019
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.
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