MWPA - Married Women Property Act must in every Insurance Policy

Is Married Women's Property Act (MWPA) is an effective way to secure the asset?

This law was formed to protect the right of women for the assets generated by the husband. It is applicable in the whole of India except Jammu and Kashmir (debatable after the revocation of Article 370).

It is applicable to any woman belongs to Hindu, Sikh, Mohammedan, Buddhist, or whose husband belongs to the said regions.

As the purview of Law is very vast, we are going to limit the law to section 6, which further protects the asset from the creditors.

Your hard work is building wealth for your loved ones. In the case of any mishappening, first, the asset is set off with the existing liabilities. Can there be any opportunity to safeguard the wealth to be an encumbrance free asset? MWPA is the answer, that aims to protect the wealth for the family that rightfully belongs to them.

   The MWPA ACT, 1874                                                    

This article will be limited to the benefits of Section 6 of this act. The corpus created out of insurance policy or policies MWPA becomes Creditor  / Encumbrances / Attachment free, subject to no malafied intentions to create the wealth is there.

   Benefits Under Life Insurance Policy                           

If a person is taking an insurance policy purely for the benefit of his wife / Wife or children /  wife and children the policy will be treated as an encumbrance free asset and it will not be subjected to any attachment by the court of law. The policy has no nominee yet they are called beneficiaries and cannot be changed.

  Formation of a Trust under MWPA Policy                     

For policies under MWPA "Deemed Trust" is created. This is a declaration and appointment of a person who will take care of the asset for the beneficiaries. Any major person or a trusted person can become a trustee. Majorly two types of trustees are appointed.

Special Trustee - Appointed by the person to be insured

Official Trustee - The government appoints this trustee in case the trustee appointed by the person is no more.

  How can one apply for this benefit?                             

This option can be taken at the inception of the policy by signing an additional addendum. 

 

  Advantages for the married women in a joint family  

A married woman living in a joint family structure can use this approach to ensure that the financial benefits of the insurance plan of her husband are protected for her and her children by allowing him to buy the policy under the MWPA and nominating his wife and children as beneficiaries.

Maturity / Survival / Paidup / Surrender benefits                                                 

Any kind of payouts in the shape of maturity, surrender, paid-up, or surrender is supposed to come to the trustee first and will be utilized for the benefit of beneficiaries. The trustee is bound by the law to utilize the money.