Such a situation would be nightmarish for the loved ones of a deceased policyholder. Not only would they have to go through the trauma of losing someone, but would also lose out on the money which was meant for them. There is, however, a way to ensure that this doesn’t happen.
Policies under Married Women’s Property Act
Purchasing insurance, be it a car insurance policy for your car or a health insurance policy for yourself are investments which are designed to provide returns during testing times. With regards to life insurance most of us have extremely high expectations which we hope will be met even in our absence.
If you are planning to buy a life insurance policy under which your wife is the main beneficiary,find variety of life insurance here . you can ensure that no one else can stake claim on her right after your death. This can be done by utilising the provisions under the Married Women’s Property (M.W.P) Act, which assures protection to the wife/children of the policyholder.
As per Section 6 of the Act, a life insurance policy purchased under the provisions of the Act cannot be attached to repay the debt owed by the policyholder/insured.
What is the MWP Act?
It has been observed that the property of legal heirs of an individual (more so if the heir is a women) could be attached to recoup money owed by the deceased borrower. This posed a threat to the survival of the dependants, especially the wife of the deceased. As such, the MWP Act was introduced to safeguard the interests of the wife of an individual. Under the act, any property which is owned by a married woman cannot be used to repay the debt owed by the husband. It was also meant to safeguard the wife from relatives of the deceased husband, creditors, etc.
How can you utilise the MWP Act?
The MWP Act can be a blessing to married women across the country. Any married man can utilise the provisions of the Act to guarantee financial security for his wife. Given the fact that most of us have debt, it is a smart idea to protect the nominee from lenders. From personal loans to home loans to credit card bills, we have a number of financial obligations. These obligations do not vanish even after our death, for the onus of repaying them falls onto our family members.