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Every woman whether homemaker or working, should know and use the MWPA act, and protect the financial interest of herself and her kids.
Let me elaborate on what this act is all about and what it does. MWPA stands for Married Women’s Property Act, created in the year 1874. This act was created to protect the property in the name of women, from relatives, creditors and even from their own husbands in case things go bad between them.
But wait, she needs to have property to be protected, right? How can she have one unless gifted to her or created by her? And why did I state both working and non-working women can benefit by this act?
I will simply state the use of this act and all the questions will be answered.
Taking an insurance cover is paramount for an earning member in the family. The same insurance policy needs to be endorsed under MWPA act and once endorsed under this act; the beneficiary to this policy can only be wife and kids of the life insured. That is in case of any loss in business of the individual or in case of his sudden death, the creditors lining up to recover money; this policy taken under MWPA cannot be attached to the estate of the business person/deceased. This policy forms part of a separate asset for dependent family members, hence ensuring protection and welfare of wife and kids only.
In the event of relations going sour between husband and wife, even the life insured of the policy (husband), does not hold any ownership right on this policy as it is already assigned in the favour of wife and kids and his rights are limited to only paying premium towards it.
This policy is specially needed for businessmen, since in business, there are always ups and downs, and times may not be always favourable. Any amount of assets you create today; can all be attached in future against the claim raised by creditors and Govt. So, it makes every possible sense to create an asset under this act and state the beneficiaries clearly.
Working women can take and assign the policy taken on her life to protect the interest of her kids under the same act. And no one under law can challenge it or use this property created under the act for payment to anyone apart from her kids, who are the beneficiary.
This act is beneficial to all women; and the knowledge of the same at the time of taking a life insurance will benefit you in taking the cover with predefined objective of protecting the interest of yourself and of your kids and ensuring due legal protection in case of things going bad in future. Because after all, insurance is nothing but protecting your risk from future uncertainty. Assigning the policy under WMPA, will under law, ensure that no one can raise a claim on it and you get true financial protection for yourself and your kids.
For example: if Vijay Malaya had taken any policy under MWPA, it would not form part of his estate currently been auctioned by banks for recovery of Money he owns them. Under MWPA, it is a separate property and the beneficiary are only wife and kids, which cannot be attached.
Note: this is a very old act, and the idea was always to protect the interest of women and her kids; but it’s our ignorance that we have not been using it to draw the true benefit intended. So, ignorance of law is no excuse.
Educate yourself, think wise & invest right!
Published here earlier.
Image source: pixabay
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Hi, I am Shaily Shah; after a good stint of 14 years in corporate life,
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