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Life Insurance under MWPA – “Kyuki Parivaar hi pehla pyaar hai”
March 25, 2022
Most people understand why they need to insure their property: an apartment, a car, a summer house. Why insure life? Let’s dig deeper into this issue and know why buying a life insurance policy under MWPA (Married Women Property Act) is the best choice for you.
Life insurance is an effective long-term financial instrument that helps you gradually set aside the necessary amounts for future expenses, investing in a brighter tomorrow – for yourself and your loved ones.
While buying an insurance policy, only one thing goes in your mind through this you will provide financial security to your family in the future. Do you know that merely giving one’s name in the insurance policy as a nominee does not ensure that the entire sum assured will be received by that nominee? After the nominee receives the sum insured, other family members can also ask for a share in it.
If a life insurance policy is in process and money is yet to be paid, then other than the beneficial nominee, any relative of the policyholder can also claim the same. To avoid such a situation, you can buy a policy under Section 6 of the Property Act. In this, the wife and children of a person get more rights.
With the outbreak of the pandemic all around, the hard-healing wounds of many families have been revived. The second wave of the pandemic in India did not spare anyone, the earners of the house, the housewife, and the elderly. For many, keeping their families financially secure means buying enough life insurance coverage. The question is whether it is enough.
For this let us try to understand a situation. You take a personal loan of a hefty amount in an emergency. In addition, you have substantial monthly expenses in the form of household expenses and school fees for the children. Still, you can take comfort in the fact that a term insurance cover of Rs 1 crore will come to the rescue of the family after an unfortunate demise.
But then you can lose this confidence. This is because in such circumstances your creditors will have the first claim on the income from the insurance. But, the best step you can take in this regard is to consider buying your life insurance under the purview of the Married Women’s Property Act (MWP) to ensure that the claim amount goes to your wife and children alone. In this, the wife and children get the claim.
In normal life insurance policies, in the event of the death or bankruptcy of a person, his property is first used to pay off the debt. Family members or legal heirs get the right to use the remaining assets from their property only after the creditors’ dues are settled.
However, due to the provisions of MWP, the rights and interests of the family are protected. In this, such policy, purchased by a married person, does not form part of his assets and, therefore, cannot be used for the purpose of meeting his debts and liabilities.
Do you find this option of buying an insurance policy more viable and beneficial for your family? If yes, then contact the experts of RKFS and buy life insurance under MWP Act now Kyuki Parivaar hi pehla pyaar hai!