So you love your wife....

So you love your wife and kids very much and have taken insurance policies to cover them in case of any mis happenings to you . But have you taken additional precautions to ensure that money certainly goes to the hand of your wife / kids.

You will say yes I have nominated them , putting wife's name in nominee column.

Do you know that this is not sufficient , a nominee is only a receiver of  money not the owner. Other family members can claim or file a legal suite to get a share of it , then your beloved wife and kids may suffer .

Then what I have to do  :

Take the insurance (term or endowment or any life insurance ) under "Married Women Property Act".

 Any insurance policy taken by the husband on his own life and endorsed under the MWP Act in favour of his wife or children, will always be their property.

Once the policy is bought under the MWP Act, it simply means that any insurance policy taken by the husband and endorsed under the MWPA in favour of his wife or children or any of them, will always be their property. None of the husband's creditors will have any right over the policy. Even the husband's parents won't have any right to the benefits. In fact, the husband will also have no rights over the survival benefits of the policy, if any. As per the Act, as long the beneficiaries named in the policy are alive, no one else will have any right to the benefits.

This is particularly relevant in case of a joint family as there can be other claimants to the policy proceeds if the insured dies. Therefore, do not overlook it to avoid any legal hassles for surviving family

 members (wife and kids)

Here is What The MWPA Law Says :

Section 6 of the Married Women's Property Act (MWPA), 1874, provides that a policy of insurance effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them according to the interests so expressed, and shall not, so long as any object of the trust remains, be subject to the control of the husband, or to his creditors, or form part of his estate.

How to do it

This can be done by simply filling in a MWP addendum while applying for insurance, without formally creating a settlement deed or a trust separately.

This benefit can only be obtained while taking the policy. Any addition or changes in the endorsement of the policy under the MWP Act is not allowed later on which means that even the husband (the insured) cannot change the beneficiaries of the policy later on.

So if you truly love your wife and kids take the life Insurance policy with addendum of MWP Act and always have peace of mind.