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How Buying Insurance Under Married Women's Property Act, 1874 Beneficial?


All types of the insurance policies such as term , endowment and ULIP plans can be bought with a MWP addendum which protects wife's assets in a case when the insurance proceeds of her husband are attached for paying for the outstanding loan amount in the case of his insolvency or death.

How Buying Insurance Under Married Women's Property Act, 1874 Beneficial?

Who can buy insurance policy with MWP addendum?

Married man who is an Indian citizen can buy an insurance plan with beneficiaries of the policy being his wife and children. Similarly married women may also buy the plan with this addendum but herein the beneficiary of the policy should be her children. Widower or divorcees are also allowed to buy an insurance scheme with this addendum.

How to buy policy with MWP clause?

For buying insurance scheme with such an addendum, the proposer or the life assured has to fill-up the addendum for MWP. Details need to be filled and consequently proposer needs to sign that in the presence of a witness. Also, the form should include beneficiary details i.e. wife and children and the proportion to be shared with each. It is to be noted when buying insurance under this option, beneficiaries cannot be changed at a later stage of time.

Also, in the scheme, you are given the option to appoint a trustee who will receive the proceeds from the insurance policy and will use the proceeds in the best interest of the policy beneficiaries. So, you are no longer required to establish a trust under the Indian Trusts Act for benefitting your wife and children.

Also, all of the religions qualify to benefit from the MWP addendum i.e. married individuals can buy an insurance scheme to benefit married women of all religions.


If the policyholder survives the policy term, beneficiaries will be provided the proceeds of the policy.


If he passes away during the policy tenure then in such a case also policy proceeds will be provided to the listed beneficiaries and in no case can be attached as a property of deceased individual.

Also, if the policy is surrendered middle-way, then also the beneficiaries will be receiving the proceeds of the policy plan.

Read more about: insurance term insurance
Story first published: Monday, December 17, 2018, 11:20 [IST]
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