The main purpose of availing a term life insurance plan, is to provide financial security to family members when the breadwinner of the family is not around. As term insurance plan is availed to provide protection to loved ones, there are certain things every married man should know, to choose the right term insurance plan. All married men should apply for life insurance, under the Married Women’s Property (MWP) Act.
Married Women's Property Act was incorporated to protect the property owned by women, from creditors and relatives. As the name suggests, only married women are covered under this act.
The Married Women's Property Act, makes sure that the insurance claim goes only to your wife and children, and not to anyone else. This act provides security to a woman's property from her husband’s creditors, the tax department, and so on.
If your husband has taken a business loan on his personal guarantee and something happens to him before he repays the loan, the bank has all the right to attach his financial assets to recover the loan dues. Bank also has the authority to attach the life insurance policies, which means claims that are paid on the demise of the husband go to the bank, instead of family members. Under the MWP Act, banks won't be able to recover death claims against the insurance policy, which was availed with the purpose of providing financial security to loved ones.
The MWP Act makes sure that the life insurance proceeds are for the protection of the family and banks cannot touch it.
If you have availed a home and still paying the EMIs on it, you must buy an insurance policy under MWP Act. This is how you can protect your house in your absence and the entire insurance claim goes to your loved ones.
Who must opt for MWP Act?
1. A person who has loans and liabilities
2. A person who wants to protect his loved ones from creditors/relatives, who might have bad intentions.