MWP ACT INSURANCE

What Is the Married Women's Property Act, 1874 (“MWPA”)

• The Married Women's Property Act, 1874 (“MWPA”) was created to secure the assets owned by a woman against her husband, his creditors and relatives.
• A policy of insurance effected by any husband on his own life and expressed on the face of it to be for the good thing about his wife, or of his wife and kids, or any of them, shall ensure and be deemed to be a trust for the good thing about his wife, or of his wife and kids, or any of them consistent with the interests so expressed, and shall not, farewell as any object of the trust remains, be subject to the control of the husband, or to his creditors, or form a part of his Corpus.

Why Women Should Be Insured under MWPA?

• Financial Security for the Family For ladies with a family, particularly the individuals who are the essential provider, they are stressed over how their family will be dealt with monetarily should they kick the bucket out of nowhere. An extra security arrangement can give genuine feelings of serenity realizing that the family's budgetary needs will be dealt with and monetary commitments met.
• Ability to Borrow against the Cash Benefit Numerous kinds of extra security offer the alternative to assemble money esteem which can be acquired against. For ladies, this money worth can be gotten to for any number of necessities; taking care of off tabs, financing an advanced degree; beginning another business, or any number of other monetary needs or objectives.
• Living Benefit due to diagnosis Chronic/Terminal IllnessHave you at any point given any idea to what you would do in the event that you were determined to have a ceaseless/terminal disease? How might your bills get paid and who might accommodate your family's monetary needs? Some disaster protection strategies can be supported with a rider to include inclusion for a constant/terminal sickness in the event that you are ever determined to have one of these conditions. You can utilize the cash to pay for therapeutic costs or for everyday costs for you and your family.
• Taking Care of Elderly/Disabled Family Members The job of the guardian is well-known to numerous ladies and as you moved toward middle-age, you may have old or crippled guardians or other relatives to think about. You can have the security of realizing their consideration will proceed after you are passed by adding them as a recipient to your life coverage.

Insurance Policies Can Be Availed Under MWP Act, 1874:

• Term Insurance
• Endowment Insurance
• Whole Life Insurance
• Money Back Insurance
• Pension/ Retirement Insurance

Income Tax Exemption on payment of Life Insurance Premium (Sec. 80C)

• Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof under an insurance policy, (other than a contract for a deferred annuity,) issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured or actual premium paid whichever is less.
• Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, under an insurance policy, (other than a contract for a deferred annuity,) issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured or actual premium paid whichever is less.. Where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person,
  who is—
• I. a person with disability or a person with severe disability as referred to in section 80U, or
• II. suffering from disease or ailment as specified in the rules made under section 80DDB, deduction under this section is allowed only to the extent of 15% of the actual capital sum assured or actual premium paid whichever is less.
• Contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction.

Income Tax Deduction under section 80D

• Deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of assessee or his family (i.e. Spouse & dependent children) or any contribution made to the central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or on account of Preventive health check –up of the assessee or his family .
• Additional deduction upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of parents or on account of Preventive health check –up of the parent of the assessee, whether dependent or not .
• In case of HUF, deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of any member of that HUF.
• If the sum specified in (a) or (b) or (c) is paid to effect or keep in force an insurance on the health of any person specified therein who is a senior citizen, then the deduction available will be up to Rs.30,000/-. Here senior citizen means the person who is of sixty year or more during the previous year.
• In Case the amounts are paid in (a) or (b) or (c) on account of preventive health check up , the deduction for such amounts shall be allowed to the extent it does not exceed in aggregate Rs. 5,000 /-.
• For the purpose of deduction, the payment shall be made by
• Any mode, including cash, in respect of any sum paid on account of preventive health check up .
• Any mode other than cash in all other cases.
• The insurance as mentioned above shall be in accordance with the scheme framed by
• The General Insurance Corporation of India as approved by the Central Government in this behalf or;
• Any other insurer and approved by the Insurance Regulatory and Development Authority.

Income Tax Exemption on Maturity / Death Claims proceeds under Section 10 (10 D)

• As per Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy is exempt from tax where the sum is received as a death benefit.
• To get exemption under above section for sum received other than death benefit following conditions to be satisfied:
• I . Policy shall not be issued under Section 80DD(3), or
• II . Policy shall not be issued as a Key man Insurance Policy, or
• III . Policy which has been issued on or after April 1, 2003 and the premium paid in any of the years during the term of the policy not exceeding 20% of the Actual Capital Sum Assured.
• IV . Policy which has been issued on or after April 1, 2012 and the premium paid in any of the years during the term of the policy not exceeding 10% of the Actual Capital Sum Assured.
• Where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is—
• a person with disability or a person with severe disability as referred to in section 80U, or
• suffering from disease or ailment as specified in the rules made under section 80DDB, exemption under this section shall be available only if the premium payable in any of the years is not more than 15% of the actual Capital Sum assured.

Step by step instructions to make a Claim – Life Insurance

• I . At the point when an individual with a disaster protection strategy – called a real existence guaranteed – passes on, a case insinuation ought to be sent to the insurance agent as ahead of schedule as could reasonably be expected.
• The chosen one or candidate under the arrangement can do this.
• So can any close family member or the operator who handles the strategy.
• The case suggestion ought to contain data like the date, spot and reason for death.
• The protection specialist has the obligation to help the existence guarantee’s family/trustee to manage the insurance agent to satisfy the conventions for a case.
• II . The insurance agent will react to this insinuation and will request the accompanying archives:
• Topped off case structure (gave by the insurance agent)
• Endorsement of death
• Arrangement report
• Deeds of assignments/re-assignments assuming any
• Legitimate proof of title, if the strategy isn't doled out or designated
• III. Type of release executed and saw
• Different archives, for example, restorative chaperon's testament, emergency clinic authentication, boss' endorsement, police examination report, after death report and so on could be called for, as relevant.

Maturity Claim Process of Life Insurance Policy

• Where an extra security strategy is developing, the insurance agent will normally send implication to the policyholder alongside a release voucher in any event a few months ahead of time of the date of development giving subtleties like the development sum payable.
• The policyholder needs to sign the release voucher – which resembles a receipt – have his mark saw and send it back to the insurance agent alongside the first approach attach to empower it to make the instalment.
• On the off chance that the approach has been allotted for some other individual or substance – like a lodging credit organization – the case sum will be paid distinctly to the trustee who will give the release.