MWP Act...A powerful tool to sell Insurance.

MARRIED WOMEN 'S PROPERTY ACT 1874


Section 6 of the MWP Act provides that a policy of Insurance effected by any married man on his own life and expressed on the face of it for the benefit of his wife and children, shall be deemed to be a trust for the benefit of his wife and children and shall not be subject to the control of the life assured, or his creditors or form a part of his estate. Each policy will be treated as a separate estate and will not be aggregated with the estate of the person who had taken out this policy, in assessing his wealth tax.

So was it clear??
Well....lets make it a little clear...
A person has a policy with a benefit of 10 lac and the policy is under the above act. Now he has already taken a loan from a bank which amounts to 8 lac. at this situation if the person dies..... then the bank may take his house/car or any thing to get the money but they can never touch a single rupee from the 10 lac of the policy under MWP act.

Again a person has to pay wealth taxes, but whatever may the amount under this policy, it will not be counted as the property of that person and so he will not have to pay wealth tax for it.

So what's the beauty??
This point is one of the most powerful tool which helps us to get big policies easily and that too with the consent and smile of our customers.

How to use?? and whom to sell??
Now this thing cannot make a difference on every type of person. This can be sold to big business men. They are the people who always have loans and creditors. They also have partners who may be good with them but may turn their faces as soon as the person dies. This may be also used for the people who have taken a car loan or a home loan.

so simply go to the customer and explain him a good policy with a large sum assured. Now this person as usual will say that he already has a policy or he does not want an Insurance as he has a big property to look after his family. At this stage explain him him the beauty of this act. Tell him that i agree that you have a very big property and i have no doubt about it. but do you pay wealth taxes on your property and have you taken loans, or do you have creditors to your business ?? you will get a positive result as this is common to big business men. Tell him that taking a policy under this act will guarantee that despite of your loan, creditors, any possible loss or fraud by any person in you business, your wife and children will have the big amount to look after them in your presence or absence. And that big amount will be decided by you and will not be touched by anyone under any circumstances. You will also save yourself from the wealth tax for that property.

So now when you are fighting for and hesitating to ask for a cheque of  1 lac, using this tool you may be shocked to see your customer writing cheques that may reach to some crores. just need to ask once.
never underestimate the value of that person's family to thousands and ask for a premium of few thousands. this may be an insult to your customer and you may have a loss at your end.

Now to implement this with a policy, as someone of your company's training or operations department and take the form with the proposal form.

Note:

• The beneficiary of the MWP act can be the wife alone, or one/more children alone or both wife and one/more children
• This need not be mentioned separately in any contract or deed.
• "Married man" also includes widower and divorced man.
• The children must have blood relationship or must be legally adopted.