Thread by @myfinology

How to get Free Insurance of Rs 50 lakh with your Mutual Fund SIP?

PS: It’s not ULIP!🤫

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#personalfinance #mutualfunds

Many individuals can’t opt for Term Insurance due to some "Medical Conditions"

What if we say, now you are eligible for it through your Mutual Funds!

But How? 👇

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The name of the solution is “SIP Insure”

It’s a Term Group Insurance policy provided by the fund house for SIP investors without charging any additional cost!✌️

⏩ No Insurance Premiums means "free coverage"
⏩ No Medical Check-up means "anyone can be covered"

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How does it work?

The SIP component is the same as other MF SIPs, but the insurance coverage and tenure vary from AMCs to AMCs.

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Let’s Understand with ABI AMC’s example

Say, if your monthly SIP is Rs 10,000/ month

- Coverage in the 1st yr = 10,000 * 20 = Rs. 2L
- Coverage in the 2nd yr = 10,000 * 50 = Rs. 5L
- Coverage in the 3rd year = 10,000 * 100 = Rs. 10L

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T&C of ‘SIP Insure’🧐

- Min age: 18
- Max age: 51
- Min SIP tenure: 3 Years
- Max insurance amount: 50L

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But does the AMC provide “Term Insurance”?

The answer is a big ‘NO’ !

AMCs buy Group Term plans from an insurance company to provide the insurance. The AMC bears the premium.

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The insurance cover will cease in the following cases:

- Upon attaining the maximum age criteria
- At the end of the SIP tenure
- Redemption / switch-out (fully or partly)
- Investor defaults in SIP instalments

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Should you invest?

This largely depends on the performance of the scheme. One should not opt for the “SIP insure” option, just for the ‘insurance component’!

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Visit: Recipe.finology.in

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