New Delhi, April 21 -- Pran Kumar had several liabilities, including a housing loan, a car loan, and a small credit card debt. But to shield his family in case of his untimely demise, he had bought a Rs.1 crore term life insurance policy. However, his wife and children did not receive the insurance payout upon his death, as it was claimed by creditors for his outstanding debts.

Pran Kumar was financially aware and decently planned for his family's future, but a single mistake undid it all - he had not bought his term life insurance policy under the Married Women's Property (MWP) Act, 1874.

The MWP Act, 1874, has a legal provision under Section 6 that protects a life insurance policy for the wife and children. If a policy is bought under...