Home Money What is the Married Women’s Protection (MWP) Act?

What is the Married Women’s Protection (MWP) Act?

Married Women's Protection

When you invest in life insurance, you aim to protect your spouse and dependent children in the event of your death. It is imperative that the claim amount reach them as quickly as possible without any complications. These days, borrowing money is a common occurrence, irrespective of whether one is employed or owns a business. In the event of the death of a husband, the creditor’s rights take precedence over those of the beneficiary. The maturity or settlement amount is paid directly to creditors. Therefore, the stated objective of providing financial security for the insured’s family is not achieved. It is at this point that the MWPA enters the picture.

MWPA: What is it?

The primary function of life insurance is to ensure the financial stability of the insured’s close family members. Despite this, there are times when, due to a variety of external factors, such as unpaid creditors, disputes, family feuds, etc., the actual beneficiaries are not entitled to receive these benefits. The Married Women’s Property Act (MWPA) may provide support in this regard. Married women (and/or their children) have access to all the benefits of life insurance policies under this act. Section 6 of this law pertains to life insurance policies, and all benefits are free from claims by creditors and taxes.

What was the purpose of its creation?

Women’s rights were severely limited during that period and were almost nonexistent after the husband’s death when the act was originally created in 1874. Due to this act, creditors, other family members, or even the husband himself is not entitled to the proceeds from the settlement or maturity.

Under the MWPA, who is eligible to purchase policies?

In accordance with this act, any married person, including divorced and widowed women, may purchase life insurance. It is possible for even a woman to purchase a policy under this act and designate her children as beneficiaries.

Who is eligible for the program?

As the primary intent of this act is to protect the wife and children from creditors following the husband’s death, the only beneficiaries allowed are the wife and/or children.

What do you need to know about MWP Act policies?

  1. Under the MWP Act, policyholders cannot obtain loans against their policies.
  2. The proceeds of a cash-value policy will be distributed to the beneficiaries upon surrender.
  3. Under the MWPA, it is possible to have more than one plan. The Act mandates that you to register each plan separately.
  4. A policy can only name a spouse or child as a beneficiary. Policy beneficiaries cannot be your parents.
  5. Under the MWP Act, it is not possible to assign your life insurance plan. This must be done at the time of purchase.

What is the process for purchasing insurance under the MWP Act?

The process of purchasing a policy under the MWPA is straightforward. The MWPA addendum can be completed along with the application for insurance when purchasing a policy. Several insurers offer the MWPA as an option on their online life insurance applications, and you simply need to select “Yes.”

This example illustrates:

Consider the following example: Mr. Manoj, a salaried individual, took out a home loan a few years ago. Under the MWP Act, he named a term insurance policy with his spouse and child as beneficiaries. As a result of Mr. Manoj’s sudden death, the bank sought a court order to clear the home loan with the proceeds of the policy. The defendants were found to be in default, and the proceeds went to his wife and child, who were protected by the MWP Act.


Today, it is quite common to purchase items on credit or to obtain a loan to meet your needs. In order to achieve their goals, salaried individuals as well as business owners rely on loans and credit. Purchasing an insurance policy under the MWPA will ensure that your family is adequately covered should you be unable to provide for them.

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