Insurance Policy Married Women’s Property Act
Insurance Policy Married Women’s Property Act – Who can take a policy under MWP Act?
Any married man can take a life insurance policy under MWP Act.
This includes divorced persons and widowers. The policy can be taken only on one’s own name, that is, the life assured has to be the proposer himself.
Any type of plan can be endorsed to be covered under MWP Act.
Who can be the beneficiaries?
The beneficiaries can be:
- The wife alone
- The child/children alone (both natural and adopted)
- Wife and children together or any of them
How will the beneficiaries get the benefits?
Each policy will be considered as a separate trust. At the time of proposal, the proposer is expected to mention the trustees too.
Trustees can be the wife and/or one or more of his adult children, or a third person.
Features of a life insurance policy under the MWP Act
- Each policy will remain a separate Trust. Either the wife or child (over 18 years of age) can be a trustee.
- The policy shall be beyond the control of court attachments, creditors and even the life assured.
- The claim money shall be paid to the trustees.
- The policy cannot be surrendered and neither nomination nor assignment is allowed.
- If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy becomes payable to the official trustee of the State in which the office at which the insurance was effected is situated.