BENGALURU: Married women rarely know the benefits of getting their husband’s to buy a life insurance policy endorsed under the Married Women Protection Act (MWPA). Section 6 of the MWPA, 1874, states that a policy of insurance effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife or of his wife and children, or any of them, according to indiatimes.com.

This means that any insurance policy taken by the husband on his own life and endorsed under MWPA in favour of his wife or children, will always be their property. None of the husband's creditors will have any right over the policy.

Procedure for Obtaining this Benefit:

This benefit can be obtained easily without much cost. The buyer needs to inform the insurance company at the time of taking the policy that it has to be endorsed under the MWP Act. This benefit can only be obtained while taking the policy. No changes are allowed later on.

Maturity/Survival Benefits:

If the policy is taken under MWPA is a cash value policy which has survival or maturity benefits, eventhough the husband survives until the policy term, he would not receive them. Instead the beneficiaries named in the policy will receive the benefits. This applies irrespective of whether the policy is money back or endowment or whole life.

Paid Up Value of Policies:

It is to be noted that in case of a cash-value life insurance policy, after the first few years as specified in the policy premiums are paid, the policy acquires a 'paid-up' value. This means that even if the policy holder stops paying the premium, the policy does not totally lapse and become zero, instead it acquires a reduced paid-up value.

Consequently, if held till maturity the policy would yield reduced maturity benefits which would be payable to the beneficiaries as per the endorsement on the policy under the MWPA.

Surrendering Value:

If the policy holder decides to surrender the cash value policy for any reason, the amount payable upon surrendering will be paid to the beneficiaries defined in the policy as endorsed under the MWPA. Thus, in case of life insurance policies taken by married men under the MWPA, the benefits in all situations death, survival, paid-up policy, surrender would go only to the beneficiaries named in the policy.

Advantages for Married Women:

The advantage is that the final beneficiary is defined and absolutely determined at the time of taking the policy. Furthermore, as mentioned above, under the MWPA only the wife and children can be named as beneficiaries. Consequently, no other family members can lay a claim to the policy benefits.

A married woman living in a joint family set up can use this method to ensure that the financial benefits of her husband's insurance policy are secured for her and her children, by getting him to buy the policy under the MWPA and name his wife and children as beneficiaries. This is particularly relevant in a joint family as there can be other claimants to the policy proceeds in case of demise of the insured.

How and who can Obtain this Benefit:

This can be obtained easily in a much cost-effective manner. All that the buyer needs to do is inform the insurance company at the time of taking the policy that it has to be endorsed under the MWP Act. This benefit can only be obtained while taking the policy. No changes are allowed later on. Any married man residing in India except Jammu and Kashmir can also avail benefit under this Act.

However, 'Married man' here also includes a widower and a divorcee who can name his children, if he wishes, as beneficiaries in a policy endorsed under this Act.

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