MARRIED WOMEN'S PROPERTY ACT – FOOLPROOF PROTECTION OF YOUR LOVED ONES

 

 

Greetings,

We buy Life Insurance policies to secure the well-being of our family, especially our wife, and kids

But just taking insurance isn’t enough. You need to make sure that the intended beneficiaries (your wife or kids) get the benefits and not others

See…it may so happen that at the time of your death, there could be a scenario of you owing money to creditors or there could be a scenario that your relatives or other legal heirs may stake a claim on your insurance money, but taking a policy under the MWP (Married Women’s Property Act) will ensure that ONLY your wife will get the proceeds and not any other person.

 

Note: Nominee under the Nomination in Insurance only ACTS as receiver of the Insurance Proceeds and is NOT the final beneficiary.

 

Hence to make 100% sure that the policy benefits/proceeds go to people intended for the same has been registered under BENEFICIAL NOMINEE (spouse, parents, children)

 

Once Beneficial Nomination (including under the MWP) then NO ONE else can challenge or stake a claim.

But if there is any amount owned by you and recoverable by any creditors, then even the beneficial nominee's rights to become secondary

And hence the best option is to register the policy under Section 6 of the MARRIED WOMEN’S PROPERTY ACT (MWP) which gives SPECIAL PROTECTION to wife/children and protect them from even creditors

 

Note under the MWP only wife and children can be named as beneficiaries.

Once under MWP, no other family member or any heir or creditor can claim the policy benefits.
In fact, even if the husband and wife get DIVORCED after the policy is taken, the beneficiaries (wife/children) will continue to remain the same!!

Also do note that the lady can take loans against their MWP act Life Insurance Policy and that too without the consent of her husband.

BTW
MWP is not restricted to married men. Even widowers or divorcees can also take benefit of MWP to make their children beneficial nominees under the MWP act.

While applying for insurance, simply tick and fill in MWP details but note no addition/changes is allowed later.

Once a policy has been issued, it cannot be assigned under the MWP Act later. You must opt for the MWP Act at the time of purchase.

 

However, if you have already taken a policy and you are truly intent on protecting

your wife for future benefits, you can do an ABSOLUTE ASSIGNMENT. An Absolute Assignment shifts the ownership of the insurance policy from you to your wife and you are NOT the owner of the policy anymore!

For example, if, after the Absolute Assignment, but during the policy term (still life), anything happens to you, no claim benefit will be given to you as you are NOT the owner of the policy anymore and the policy has been transferred to your wife!

In fact, an ABSOLUTE ASSIGNMENT can be taken even 5,10 years AFTER taking a policy.

 

Do take the help of your Qualified Personal Financial Professional before taking any action. 

All the best, 

Regards, 

Srikanth Matrubai

Author: Dont Retire Rich

Qualified Personal Financial Professional

All the best,
Regards,
Srikanth Matrubai

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You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

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