MWPA act has two different Sections 5 & 6 for insurance policies.
Section 5 is for Married Women, they can take insurance under MWPA on their life, beneficiary can be her child(ren), husband or both. Benefits by the such policy will treated as her separate property. And she will have all the rights over the maturity proceeds of the insurance policies.
Section 6 is for Married Men, they can take insurance on their life under MWPA. Married Men could also be Divorced or widower. These policies will not treated as Married Men’s property and can’t be targeted by his creditors. These types of policies can’t be control by him with immediate effect of policy initiation.
If, Married men take insurance then beneficiary could be his wife, children, or both.
If, he is widower or divorced, then beneficiary could be his children.
When MPWA can be initiate? MPWA only can be initiate to Life insurance policy at the time of Proposal Stage (policy purchasing) only, you have to just fill an addendum and signed it.
After taking policy you can’t remove MWPA from policy,
MPWA can’t be initiate on existing / old life policies.
Is premium will charged higher? No, there is no extra premium for initiate the MPWA in life insurance policy. It’s not a rider.
Features of MWPA Linked Life Insurance Policies:
- Beneficiary can’t changed.
- MWPA can’t initiate after proposal stage.
- Benefits from policy can’t enjoyed by policy holder.
- The beneficiary can be only spouse or child(ren) or both.
- Assignment of policy not allowed.
- Husband continues to pay premium for the life insurance plan.
- Such policies can’t be part of husband property.
Who can opt MWPA Linked Life Insurance Policies: Married Men / women, including widower/divorced men, for securing his/her spouse and or child(ren).
Which type of Insurance Policies can be covered: All Life insurance policies, like Term Plan, ULIPs, Traditional Plans.
Most Suitable for: All Business Men/women including self-employed, however there is no restriction anybody can have it, if he is married. But we strongly recommend Business entrepreneurs as their fund flow in markets and mostly have huge loans to run their business.