Married Women's Property Act: The Forgotten Shield

Women today manage investments, insurance portfolios, and family wealth, but many remain unaware of key legal tools to protect their finances.

- Manju Dhake

One such tool is the Married Women's Property Act (MWPA), 1874, a 150-year-old yet underused safeguard in India.

What is MWPA: The MWPA allows a married man to take a life insurance policy and designate the proceeds solely to his wife and/or children. Once invoked, the policy becomes a legally binding trust, shielded from creditors, extended family claims and legal disputes. This means that in case of the husband's demise, the payout directly and exclusively reaches the identified beneficiaries without delays or probate.

Say, your husband has taken business or other loans. He has also bought a term insurance policy to secure your children's higher education. If he passes away without paying up his loans, creditors will come after the term insurance payout, which is meant to secure your children's future. However, if the policy is endorsed under MWPA, the creditors cannot touch the insurance payout. The entire proceeds go only to his wife and children, giving them financial security. Despite its simplicity and strength, MWPA is often overlooked. According to various estimates, less than 10% of life insurance policies are assigned under MWPA mainly due to lack of awareness.