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Importance of buying Term Insurance Policy under MWP act

March 16, 2019 1518

With the rise in individual participation and women’s rights around the world, the clarion call for women’s financial independence and freedom has already been given. As her spouse and equal partner, you have an equal responsibility of ensuring that a proper financial base for your wife is built which can cover her for the entire duration of a lifetime. While ensuring that such a base is built, there may be times when due to non-availability or any other contingency of funds, you may have to borrow from certain creditors. In any case, investment options are unlimited and must be utilized for ensuring complete benefit over a period of time.

Life insurance serves as a basic protection that entitles the policy holder’s dependent spouse and your children to receive the main policy fund (i.e. the sum assured) in the event of the policy holder’s demise. However, if proper care is not taken at the very outset, the entitlement of your spouse or children may be severely impacted or even nullified. This is because the proceeds from the insurance claim may be taken over by those whom you owe the money. Therefore, the very purpose of purchasing the life insurance policy may be defeated. As a safeguard against this, you must be sure to specify at the time of purchasing the policy that you wish to purchase the policy under the provisions of Married Women’s Property Act, 1874 (MWP Act, 1874).

You don’t have to fill any separate or elaborate forms for this provision. In fact, this clause is given in the beginning of the policy application and all you have to do is to check the option. Then you just have to fill in the basic details of your wife and your children. It must be noted that the provisions of MWP Act are meant exclusively for your wife and you cannot add any other dependent relatives in this clause. Once added, you can check the details and confirm. Basically MWP Act serves as a guarantee for the financial rights and security of your wife. It entitles her as the sole beneficiary (with the dependent kids) and makes her the heir to the proceeds of the total benefit (i.e. the sum assured) of the insurance policy. This claim cannot be over ridden in the event of any dispute with the creditors and even in the court of law, is seen as the guarantee in favor of the policy holder’s wife.

HDFC Life offers various term insurance plans that seek to secure the future of your loved ones and allow you to lead a stress free life. These plans are formulated for financial inclusion of your family and for enriching your financial portfolio. For details, click on the mentioned link: https://www.hdfclife.com/term-insurance-plans.

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Francis Rodrigues

Written By:

Vishal Subharwal

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