Most people focus on the policy cover, period and premium while purchasing a life insurance policy. But, there is a feature that can play a big role in securing the future of your family. This is the Married Women’s Property Act, 1874. It is also called MWPA.
What does MWPA mean
Mwpa There is a legal provision that decides that the money received from life insurance will only be given to the widowed wife or children of the policyholder. If there is a loan on the policyholder or any legal claim is made on it, then only his widowed wife or children will get the money of life insurance after his death.
What is the benefit of this act
Varun Aggarwal, head of term insurance in the policy market, said that if the policyholder dies and the policy comes under MWPA, then the beneficiary of his wife and children who will be the beneficiary will be made only on the money of life insurance. This means that even if there is a loan on the policyholder, the bank or NBFC may not claim insurance money.
Only beneficiary rights on insurance money
Sarita Joshi, head of health and life insurance in Probus, said that since Life Insurance Policy comes under this Act, which does not claim to give loans on this money. No one can claim this money even if the policyholder is bankrupt. Insurance companies give insurance money directly to the beneficiary. It is important to keep in mind that even the parents, siblings or any other family members of the policyholder can claim this money.
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This clause has to be added while purchasing a policy
Every type of life insurance policy comes under MWPA. This includes term plan, endowment plan and ULIPs. While purchasing the policy, the customer will only have to take care of adding MWPA Claus. This class cannot be added to it after purchasing the policy. This means that once the policy is issued, the names of its beneficiary cannot change.