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    MWP Act - Married Women’s Property Act in Term Life Insurance 2025

    Last Updated On 16-05-2025

    We all buy a term insurance plan, thinking it will secure our family’s future in case something happens to us. But you may not know that just purchasing a 1 crore term insurance doesn’t guarantee that your wife and children will receive the money. Yes, you heard that right!

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    If you have debts or liabilities, creditors, relatives, or even legal complications, it could prevent your loved ones from getting the insurance payout. This is where the MWP Act (Married Women’s Property Act) ensures that only your wife and children benefit from your policy.

    Let’s break it down and understand how the MWP Act in insurance protects your family’s financial future.

    What is the MWP Act?

    The MWP Act full form is the Married Women's Property Act of 1874. It was created to secure a married woman’s right over her property, including life insurance policies taken by her husband.

    Under MWP Act registration, if a married man buys a term insurance plan under this act, the claim amount cannot be taken by anyone except the wife and/or children. Even if the policyholder has unpaid debts, the sum assured will not be accessible to creditors.

    The primary objective of the MWP Act is to safeguard the financial interests of women—whether they are wives, mothers, daughters, or sisters—who rely partially or entirely on the earning male members of their family.

    In 1923, an amendment to the Act broadened its legal coverage, specifically including the death and maturity benefits of life insurance policies in India. The MWP Act contains two key sections relevant to life insurance—Section 5 and Section 6—each serving a distinct purpose.

    Section 5 of the MWP Act grants married women the right to purchase life insurance policies independently. A policy acquired under this section ensures that the woman and her nominees have exclusive authority over all benefits arising from the policy. However, this provision is currently only available to married Christian women.

    Section 6 of the MWP Act legally ensures that the death or maturity benefits of a life insurance policy purchased by a married man (including a widower or divorcee) with the MWP addendum remain the sole property of the nominated beneficiaries, such as his spouse and dependent children. This provision prevents creditors or relatives from making claims on the policy proceeds.

    How Does the MWP Act Protect Your Family?

    When you buy a term insurance plan under the MWP Act, it is considered legal trust. This means:

    • Only the wife and/or children you nominate will get the payout.
    • Creditors cannot claim the money, even if you have unpaid loans.
    • Relatives cannot contest the insurance proceeds in court.

    Example 1: Protecting Against Creditors

    Let’s say Mr. Mehta, a businessman, had taken loans to expand his business. He also bought a 1 crore term insurance policy under the MWP Act with his wife as the beneficiary. Unfortunately, he passed away before repaying his debts. His creditors tried to claim the insurance money, but they were denied since the policy was under the MWP Act. The sum assured was safely handed over to his wife, ensuring her financial stability.

    Example 2: Avoiding Family Disputes

    In another instance, Mr. Sharma had a job and a joint family. After his demise, he was more worried about the financial future of his wife and children. To ensure no other extended family members would contest the insurance payout, he chose a term plan with return of premium under the MWP Act. Only his wife and children received the money, preventing any legal disputes.
    We hope you get an understanding of terms like what is term life insurance and MWP Act in insurance from the above examples.

    Who Should Opt for the MWP Act?

    If you are a married man, especially with dependents, you should strongly consider buying your term insurance plan under the MWP Act. It is particularly useful for:

    • Business Owners: If you have business debts, this will protect your family from creditors.
    • Salaried Individuals with Loans: If you have a home loan, personal loan, or any other liability, this ensures your family gets the full claim amount.
    • Men in Joint Families: Avoid complications over inheritance and property disputes.
    • People Who Want Absolute Financial Security for Their Family: Ensure that your wife and children are the only ones who benefit from your term insurance plan.

    How do you buy a term insurance plan under the MWP Act? Let’s find out.

    How to Buy Term Insurance Under the MWP Act?

    It’s simple! When you buy PNB MetLife Mera Term Plan Plus online , you will see an option:

    Would you like to buy this policy under the MWP Act

    All you have to do is select YES and then enter:

    • The beneficiary’s details (wife/children).
    • Their percentage of the benefit share.
    • Trustee details (who will manage the policy).

    That’s it! Once the policy is issued, it will be legally protected under the MWP Act.

    Conclusion

    Your term insurance plan should protect your family -— not become a legal battleground. Registering your policy under the MWP Act ensures that your wife and children receive the payout without any disputes.

    At PNB MetLife, we offer flexible plans with different features, including a term insurance plan with return of premium, which assists in accurately achieving financial goals. Take action now and protect your family's future because they should never pay the price for someone else’s mistakes.

    Get started now! Use our term insurance calculator and buy the best policy under the MWP Act.

    FAQs on MWP Act

    Expand All Collapse All

    Can I add my parents as beneficiaries under the MWP Act?

    Collapsed Expanded

    No, only your wife and children can be named as beneficiaries.

    Can I assign an existing term insurance policy under the MWP Act?

    Collapsed Expanded

    No, you must opt for MWP Act registration when purchasing the policy.

    Can I take a loan against a policy covered under the MWP Act?

    Collapsed Expanded

    No, policies under the MWP Act cannot be used as collateral for loans.

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI or its officials is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

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