A few days back, I was standing in an ATM queue, waiting to withdraw cash. In the queue, standing with me, was a businessman. As we waited for our turn, we started talking. The formal talk turned into a discussion about the recent financial situation. After a few minutes of appreciating the new decision, the guy started telling me about his life. He told me about his passion for food and technology and how he had created an online portal for ordering food. His journey was really an inspiring one.

He said that being a startup, finance was always a concern. Many a times he had to take loans to run his business. He told me that he was always aware about the financial risks of a business but wanted to follow his passion nevertheless. This got me a little curious about what he would have done if his business didn’t work and the finances were weak. How would his family manage? Not able to hold on for long, I posed the question to him. He had a grin on his face, which almost said that he expected me to ask that.

With a smile on his face he said that he followed one golden rule – Keeping the finances for the family and his business separate. Under no circumstance does he mix the two. While his business may seem to go through ups and downs, he planned his family’s security with life insurance to ensure all their important goals were met and there were no surprises. He had done one more interesting thing. He had bought all his life insurance policies under Married Women’s Property Act (MWPA)^. What is that I enquired?  Just as he was about to explain it to me, it was our turn to get some cash from the ATM. After we withdrew cash, we both exchanged our goodbyes and went our separate ways. However, the MWPA was stuck in my mind and I was determined to do some research on it.

My research revealed that Married Women’s Property Act (MWPA) was created to protect the properties owned by women. Under the Act, the husband can take a life insurance policy on his own life for the benefit of his wife and/or children. I also read that availing this benefit is simple. One just needs to fill an addendum along with the policy one purchases. The addendum is provided by the life insurance company on request.

I even read that one can enjoy the same tax benefits* on the life insurance policy – on premiums paid and the money received at maturity, and that the Married Women’s Property Act (MWPA) did not impact it in anyway. This got me curious as to why isn’t this act used more often?  But, I realized that just like me not everyone would be aware about these benefits and thus it rarely gets used. I strongly believe that using this act can be really worthwhile for securing one’s family’s future.


*Tax benefits as per prevailing tax laws. Please consult your tax advisor for details. L/II/1258/2016-17.
^Nothing contained under the Act shall operate to destroy the right of any creditor to be paid out of the proceeds of any policy of insurance which may have been effected with intent to defraud creditors.

About The Author

ICICI Prudential Life Insurance Company Limited is one of the leading life insurance companies in India. We provide insurance plans & policies that include a range of products like term insurance, ULIPs, tax saving plans and pension & retirement plans.

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