In India, married residents can purchase life insurance coverage for their spouses under the Married Women's Property Act. According to Section 6 of the MWP Act, if you are a married man, then you are eligible to purchase life insurance protection for your wife and children under the Act. If you purchase life insurance with the MWP addendum, the proceeds from the policy will effectively be a part of your beneficiaries' property.
Who can opt for life insurance coverage under MWPA?
All married residents of India, including married women, are eligible to opt for a life insurance policy under the Married Women's Property Act. Widowers and divorcees may also purchase life insurance coverage under the Act; however, they will have to name their children as beneficiaries. All life insurance policies are covered under the MWP Act, regardless of age, time, and the premium amount. The proceeds from such a policy are considered as a separate asset, and not under the husband's asset portfolio. Thus, purchasing a life insurance policy under the MWP Act is beneficial for self-employed individuals, business owners, and those who have unstable sources of income.
Who can be named as beneficiaries under MWPA?
The following individuals/bodies can be named as a beneficiary under a life insurance policy with MWP addendum –
How to purchase a life insurance plan under MWPA?
Opting for life insurance protection under the MWP Act is hassle-free and affordable. Herein, the applicant must fill up an MWP addendum, alongside the life insurance proposal form. The MWP addendum form is readily available online on the insurance company's website. The applicant must provide the details of the beneficiaries and the percentage of accrued benefits at the time of purchase. The beneficiaries, once declared, cannot be changed later.