Term insurance is a crucial financial tool that provides life coverage for a specified period. While it ensures financial security for your loved ones, buying term insurance under the Married Women's Property (MWP) Act offers additional benefits and protection. Here’s why you should consider purchasing term insurance plans under the MWP Act.
What is the MWP Act?
The Married Women's Property Act, 1874, is a law in India protecting the assets of married women. When a term insurance policy is bought under the MWP Act, it ensures the policy benefits go directly to the wife and children, protecting them from creditors and claims by other family members.
Significance of Term Insurance
Term insurance is a type of life insurance policy providing coverage for a specific period or "term." If the policyholder passes away during the term, the beneficiaries receive the death benefit. Unlike other insurance types, term insurance does not have an investment component or cash value.
Affordable Premiums: Generally more affordable when compared to other life insurance policies.
High Coverage: Provides substantial coverage at a low cost.
Flexibility: Offers various options in terms of policy duration and sum assured.
Benefits of Buying Term Insurance under the MWP Act
Protection from Creditors
If the policyholder has debts, creditors cannot claim the term insurance proceeds if the policy is taken under the MWP Act. This ensures the beneficiaries receive the full sum assured.
Exclusive Benefit to Wife and Children
Policies under the MWP Act ensure only the wife and children are entitled to the death benefits. This provides additional security and financial stability to the immediate family.
The policy cannot be attached to any court order or judgment, ensuring the insurance benefits are exclusively for the intended beneficiaries.
How to Buy Term Insurance under the MWP Act?
When purchasing a term insurance plan, you must specify that the policy should be under the MWP Act. This is done by filling out an additional form at the time of application.
Here’s how you can buy term life insurance plans under the MWP Act.
Choose the Right Plan: Use a term insurance calculator to determine the appropriate sum assured and policy duration.
Fill Out Application: Complete the term insurance application form, ensuring you indicate that the policy is under the MWP Act.
Submit MWP Form: Submit the MWP Act form along with the application to ensure the policy is governed by the Act.
Buying term insurance under the MWP Act is a strategic move to ensure your loved ones are financially secure and protected from creditors and legal claims. Understanding the meaning of term insurance and knowing the benefits of the MWP Act can help you make an informed decision. This approach guarantees that the financial benefits reach the intended beneficiaries, providing peace of mind and security for your family.
Disclaimers: IndiaFirst Life Insurance Company Limited, IRDAI Regn No.143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North Tower, Building 4, Nesco IT Park, Nesco Centre, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll free No – 18002098700. Email id: customer.first@indiafirstlife.com, Website: www.indiafirstlife.com. Fax No.: +912268570600. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding the sale. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd under License.
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