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Assets protection under Married Women Property Act 1874
We think getting term insurance coverage will protect our family, especially our wife and kids, from unforeseen circumstances. Simply purchasing a life insurance policy does not ensure your loved ones will get the death benefit. It’s possible that the money from your term life insurance claim won’t go to your nominee or beneficiary.
In your absence, relatives or others you might owe money to (creditors) can take it. You can guarantee that your wife and children will receive the assured sum by acquiring a term insurance plan under the MWP Act.
A married man can support his family’s financial interests while away by acquiring a term insurance policy under the Married Women’s Property Act of 1874 (MWP Act). The court cannot attach insurance obtained under the MWP Act to recoup debts. Only your children and wife will be eligible to receive the insured amount in the case of your death.
If you take LIC Policy under MWP Act, your capital will be safe in all situations. For example, heavy business losses, insolvency, old age provisions etc.
What is MWP act?
A trust for the benefit of the husband’s wife, wife and children, or any of them, according to the interests so expressed, shall ensure and be deemed to be a trust for the benefit of the husband’s wife, wife and child, or any of them, according to interests so communicate, and shall not, so long as any product of the trust remains, be subject to the control of the husband.
Create Personal Reserve
As you know that business involves a lot of risks. One wrong decision may lead to heavy losses, or it may end up with insolvency.
Under the law, the court has the right to seize all business and personal assets, savings & investments owned by the owner to pay off the creditors and lenders.
Cases like Jet Airways, Kingfisher Airlines, Rotomac, Daewoo Motors, Sahara, Supertech, Nirav Modi, etc., are some known examples.
At that time, the financial crisis occurred, and there were no funds to start a new business.
There is a legal avenue where your invested money will be safe, and the court cannot attach it in any situation.
Know What is the Right Avenue
Why Capital Protection?
As you are aware, doing business has several risks, including the unpredictable demise of the key person, changes in technology and governmental rules and regulations, recession, competition, poor decisions made, and an increase in contingent liabilities.
Sometimes the number of a company’s liabilities increases to insolvency. The court has the legal right to seize the owner’s assets, including those from her or his business and personal life, to pay off the debts and lenders.
Cases like Kingfisher Airlines, Rotomac, Daewoo Motors, Sahara, Supertech, Nirav Modi, etc., are some known examples.
At that time, the financial crisis occurred, and there were no funds to start a new business.
How does the MWP Act protect my family?
The term policy that falls under the purview of the MWP Act shall be regarded as a trust. Only trustees will control the insurance, including benefit payments and services. At the time of a death claim, the policy proceeds are transferred to the trust, and only trustees can make a claim. It can not be used to pay off debts, be claimed by relatives, or be mentioned in the will of the proposer’s estate. For the benefit of the wife and kids, the trust will keep the claim amounts (ren). Consequently, the financial future of your wife and children is assured.
Suppose you are a salaried/working professional individual with a house or personal loan or a business owner with accumulated debts. In that case, your creditors will have priority over the proceeds of your policy in case of your death. When you choose term insurance under the MWP – Married Women’s Property Act, only your wife and child(ren) can access the claim amount, allowing you to secure their financial future.
This is also an excellent option for split families, where property owners may have several issues. There could be a gap in the tiny language that makes family disputes over funds and property common. In such circumstances, a policy covered by the MWP -Married Women’s Property Act will grant the beneficiary a clear title.
Throughout the period, the beneficiaries (wife and child(ren)) initially named in the policy stay the same. Once the policy is in place, it won’t be regarded as a component of the insured’s estate (business assets) and cannot be pursued by the company’s creditors or lenders. This means that the insured’s wife and child(ren), with whom it properly secures their future, are the only parties who may exercise control over the benefit amount in the event of the insured’s death.
How do you buy term insurance under the MWP Act?
Contact any advisor who provides this policy, and you can contact us also.
What is the Solution ?
There is only one solution to take “LIC Policy Under MWP Act“Where your invested money will be totally safe with Govt. Guarantee in every situation.