Protect insurance payouts from creditors by buying term plan under MWP Act

A TERM INSURANCE plan under the Married Women's Property (MWP) Act will ensure financial protection of the insured's wife and children in his absence.

- SAIKAT NEOGI

The insurance payout will only go to them and no creditor of any outstanding loan of the insured can stake claim on the amount.

In case a woman is opting for MWP Act when buying a term insurance policy, the entitled beneficiaries will be her children. The option is available in most term plans and there is no additional cost for availing this benefit.

To purchase a policy under the MWP, the policyholder needs to complete the MWP Act addendum alongside the insurance application at the proposal stage. An existing term insurance policy cannot be modified into one under the MWP Act. The policy once issued under this Act also cannot be altered later.

This policy is particularly beneficial for married individuals concerned about their spouse and children's well-being. Having such a plan ensures security from any claims made by creditors, relatives or any other legal claims.