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Mutual Funds with Insurance

A few mutual fund houses – Aditya Birla Sun Life, ICICI Prudential and Reliance – have bundled term life insurance cover with a few of their schemes. These bundled products have been christened as century SIP, SIP plus and SIP insure by the respective AMCs.

What is MF scheme with insurance cover?

A few fund houses provide free life insurance cover to their SIP investors. The insurance provided is essentially term insurance wherein the insurance company will pay out money only in case of death of the investor. This facility is available only on select schemes. In addition, the investor has to have an investment tenure of at least of 3 years to be eligible for this facility.

How does Mutual Funds with Insurance work?

The insurance cover is proportional to SIP amount subject to an upper limit. Unlike other life insurance schemes your clients do not have to undergo any medical test but declaration of good health is mandatory.

Let us look at the features of SIP + insurance offered by different AMCs.


 

Aditya Birla Sun Life Insurance

ICICI Prudential Fund

Reliance Nippon Life

Eligibility

1-55 years

1-55 years

18-51 years

Maximum sum assured year-wise

1st Year –  10 times the monthly instalment

2nd  Year – 50 times the monthly instalment

3rd  Year – 100 times the monthly instalment

 

In addition the insurance company will pay the investor's pending Century SIP  instalments

1st Year – 10 times the monthly instalment

2nd  Year – 50 times the monthly instalment

3rd  Year – 100 times the monthly instalment

1st Year – 10 times the monthly instalment

2nd  Year – 50 times the monthly instalment

3rd  Year – 120 times the monthly instalment

Maximum sum assured

Rs.20  lakh

Rs.50 lakh

Rs.21 lakh

Minimum instalment

Rs.1,000

Rs.1,000

NA

Discontinuation of cover

In case of partial or complete redemption/switch out

In case investor stops SIP before 3 years

Cover ceases

In case investor stops SIP after 3 years

Cover continues with certain caveats in terms of sum assured




SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

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