ARTICLES

Did you know that the MWP Act can safeguard your wife’s inheritance?

Every husband wants his wife and children to be financially secured in his absence. That’s why he takes out a life insurance policy to provide financial security to his family.

But is such financial security assured? Not without the MWP addition!

The rationale behind the MWP Act

Many times, the in-laws, relatives, or creditors stake a claim in the life insurance proceeds after the death of the breadwinner. This takes away the wife and children’s rightful claim on the benefits causing a considerable financial loss. As such, the Married Women’s Property (MWP) Act was passed in the year 1874 to safeguard the rights of married women and children on the husband’s property and investments. 

As per the Act, the property of a man can be claimed only by his wife and/or children after his demise if he added the MWP clause to the property. 

How does the MWP Act work in insurance?

When a husband invests in a life insurance policy, he can select the MWP clause in the proposal form. Selecting this clause does not affect the insurance premium nor the policy in any way. It just ensures that if the husband would die, the policy benefits would be paid only to the wife, children, or both, as specified by the husband. No one else would be able to stake a claim on the policy benefits even if the husband has left behind creditors.

Here are some reasons why the MWP clause should be added to a life insurance policy:

Your wife/child becomes the sole beneficiary

If you choose to add the MWP clause to your life insurance policy, your wife and/or child would become the sole beneficiary for the policy benefits. This way, you can plan a corpus for your loved ones in your absence and secure it too.

A woman’s property is protected if the husband dies prematurely

If the MWP clause is added, a married woman’s property is secured in the absence of the husband. From a woman’s perspective, this fact provides financial security and stability, especially if the wife is a non-earning member.

Secures the benefits against loan, surrender, or assignments

Plans with the MWP clause cannot be surrendered before the policy tenure. Moreover, the policyholder cannot take a loan against the policy nor assign the policy in the favour of others. This keeps the benefits intact for the wife/child’s use.

As a husband, if you want to secure your wife/child’s ownership of your property, buy a life insurance policy and add the MWP clause to it. As a wife, urge your husband to opt for the MWP clause so that you can be financially secured.