We usually believe that purchasing a term protection plan guarantees the financial safety and security of our family, especially spouse and children, in case of an emergent situation. Actually, purchasing a life cover alone will not guarantee that your friends and family get the protection sum after your demise. The sum assured is not guaranteed to reach your wife as it may be taken by the family members, friends or associates who loaned money to you in the past and you need to pay them back.
While this sounds like a heart-breaking scenario, there is always a remedy to every situation in the insurance world. You can protect your sum assured for your wife and children by purchasing a term plan under MWP or Married Women`s Protection Act. This is a safe and secure way to add your wife to your term insurance policy.
For a wedded male policyholder, purchasing a term protection plan under the Married Women`s Property Act 1874 (MWP Act) helps in securing his money for his wife in his absence. When an insurance policy is purchased under the MWP Act, it is accompanied by a court`s statement against the reimbursement of policyholder`s debts. Which means just the wife and kids are the rightful candidates for the sum assured, in case the policyholder dies. The sum will not go to the debtors or towards other liabilities or other family members who try to claim the amount.
This makes term insurance policy a further beneficial plan for all the married men. It is a unique way to add your spouse to your term plan.
Let us understand how MWP Act protects your family, especially your wife
The term plan under the domain of the MWP Act can be seen as a trust. Just as trustees hold all the control on the strategy including adjustment, receipt and usage of the assured capital, in the case of term plan, your spouse becomes the trustee. In case you are caught in a mishap and lose your life, the proceeds are remitted only to her and not to anyone else. The amount cannot be asserted by loan providers, family members or anyone else holding a structured piece of the will. For example, if you are a salaried individual who has a liability such as a home loan or personal loan on your head, your wife and your children will have the absolute right to decide whether they want to use the sum assured for loan reimbursement or not. Thus, the financial future of your wife and kids is secured.
This happens only when you buy term insurance online under MWP Act. Your wife and your kids remain the people who can claim the sum assured. This is additionally an incredible answer for a joint family arrangement, wherein there could be few confusions related to the allotment of sum assured. An arrangement secured under the MWP Act will give a reasonable title to the rightful recipient. The recipients (spouse and additionally kids) once referenced in the policy stay unaltered all through the term. When the term plan is allotted, it is not viewed as a component of the business protection plan.
Who should opt for MWP Act?
Salaried individuals, who have loans and liabilities to pay off, yet, want to secure the future for their family, must buy a term plan under MWP Act. The advantage sum with term disaster protection can be enormous enough to monetarily ensure somebody`s future in your absence.
Thus, buying a term insurance under MWP proves to be a foolproof plan to secure the immediate family after your policyholder`s death.
While you share love, care and togetherness with your wife, adding her to your term plan under MWP Act is the best gift you can give to her for the times when you are not around. To check a term insurance policy under MWP Act, just log in to our website or give us a call. We are happy to help you with all your queries related to insurance.
Read More About: Facts About Term Insurance