Mutual Fund SIP Offer: In the Corona crisis, where there has been an increase in the habit of saving people, the demand for insurance has also increased a lot in the last 1 year. In Corona crisis, many people are planning to invest through Systematic Investment Plans (SIPs) instead of investing directly in equity. At the same time, many people are planning for life insurance or health insurance in view of the growing crisis of Corona. But these days, both these things can also be done on the same platform. Actually, in view of Corona Crisis, some mutual fund companies are giving insurance cover with SIP for free. Insurance cover is being decided on the basis of SIP amount and tenure.
These fund houses are offering
Some select mutual fund houses of the country have started offering the benefit of free insurance cover with SIP. Among the SIPs in which insurance cover is also being given benefits are PGIM India Mutual Fund, ICICI Prudential, Nippon India Mutual Fund, SIP Insurance and Aditya Birla Sunlife Century SIP. If investors start investing with the SIP plan of these fund houses, then they will start getting the benefit of insurance without medical examination.
What is your offer
This is a free insurance cover for which one can choose any option while starting SIP. It is being given on all equity and hybrid schemes of most fund houses. Most fund houses are offering SIP insurance to people in the age group of 18-51 who invest in the eligible scheme. There is no need for any medical examination under this. Because it is a group insurance policy. Insurance cover up to the age of 55 years is valid. Therefore, if an investor starts a 10-year SIP at the age of 51, then the insurance cover will be available till the age of 55 years. However, some companies are offering even till the age of 60 years.
How much cover do you get
At present, select mutual fund houses are giving 20 times more insurance cover than the SIP amount in the first year. The second year is giving 75 times the amount of investment and the third year giving 120 times more cover. According to the information given on the website of PGIM India Mutual Fund, the insurance cover will be 20 to 120 times the monthly SIP. It can be up to 50 lakhs maximum.
It can be understood by an example that assuming you have started a SIP of 10 thousand monthly. So the first year insurance cover will be 20 times i.e. 2 lakh rupees. In the second year it will get a cover of 75 times i.e. 7.5 lakh rupees. At the same time, it will get 120 times or up to Rs 12 lakh cover. That is, if the death of a SIP person becomes third year due to some reason, then his nominee will get the sum assured along with the mutual fund units.
Investment required for 3 years
If an investor has availed insurance cover with SIP, then he will have to make regular investment for at least 3 years. If the SIP is discontinued before three years, the benefit under insurance will end. At the same time, after running the SIP for three years, he will continue to get the benefit of insurance. However, the amount of cover will be reduced when the investment is stopped.