Fund houses that facilitate investment in SIP are now giving insurance cover benefits to customers as well. However, the fund houses have fixed certain terms and conditions for this.
Last year, the lockdown caused by the corona virus epidemic has given people a lesson. Now people are saving more than before. Due to poor understanding of the equity market and low interest rate in small savings schemes, more people are opting to invest in a systematic investment plan. Apart from this, people are also planning for life and health insurance. In such a situation, if you get the benefit of SIP and insurance in a single investment, then what is the matter.
In view of the Corona crisis and the need of the people, most mutual fund companies are giving their customers the benefit of insurance with SIP for free. The insurance cover on these SIPs is being decided on the basis of the amount and duration of the investment. The companies offering SIP with insurance are companies like PGIM India Mutual Fund, ICICI Prudential, Nippon India Mutual Fund, SIP Insurance and Aditya Birla Sunlife Century. If you want to invest in SIP through these fund houses, then you will get the benefit of insurance without medical examination.
There will be no need for medical examination for health insurance
These fund houses are giving their customers the benefit of free insurance cover with SIP. It is being given on all equity and hybrid schemes of most fund houses. These fund houses are offering this option to the customers investing from the age of 18 to 51. Due to being a group insurance policy, they do not even require medical examination.
This insurance cover will be valid till the age of 55 years. In such a situation, if a person has started SIP for 10 years at the age of 51, then they will get this benefit till the age of 55 years. Some companies are also offering this limit till the age of 60 years.
How much amount will be covered?
These mutual fund houses are giving insurance cover up to 20 times more than the SIP amount. In the second year, 75 times of the investment amount and 120 years more are being covered in the third year. PGIM mutual fund houses are giving 20 to 120 times more cover of monthly SIP. The maximum limit for this can be up to 50 lakh rupees.
With the help of the example, if you are starting SIP for 10 thousand rupees per month, then you will get an insurance cover of Rs 2 lakh according to 20 times in the first year. In the second year, 75 times i.e. 7.5 lakh rupees will be covered. Whereas, the third year will get a cover of Rs 12 lakh according to 120 times.
In such a situation, if a SIP holder dies for the third year, then they will get 120 times the investment of every month as insurance cover. After death, this amount will be given to the nominee.
Insurance cover will be available even after the amount invested in SIP
However, mutual fund companies have also placed certain conditions for insurance cover with SIP. With the introduction of SIP, it will be compulsory for those who opt for insurance to invest for 3 consecutive years.
If a person closes it after investing in SIP for three years, then they will continue to get the benefit of insurance. But, once the investment is stopped, the amount of insurance will be reduced.
