New Delhi: The COVID-19 pandemic has as soon as once more highlighted the necessity to have an everyday funding and the significance of insurance coverage.
In the aftermath of the COVID-19 disaster, the demand for insurance coverage has additionally been on the rise. In a bid to faucet on this altering development, mutual fund homes have additionally modified the technique to draw traders by providing the good thing about free insurance coverage cowl to those that begin a brand new Systematic Investment Plan (SIP), a Live Hindustan report stated.
Some choose mutual fund homes of the nation have began providing free insurance coverage cowl with SIP whereas the outstanding amongst them embody ICICI Pru. Mutual funds SIP Plus, Nippon India Mutual Fund, SIP Insurance and Aditya Birla Sunlife Century SIP. Investors who’re investing with these SIP plans can get insurance coverage cowl with out present process any medical examination.
The insurance coverage cowl given with SIP is definitely group time period insurance coverage. Mutual Fund homes are providing the good thing about time period insurance coverage to traders aged 18 to 51 years. Presently, choose mutual fund homes are providing insurance coverage cowl 10 occasions greater than the SIP quantity in the primary yr. In the second yr they’re giving 50 occasions the funding quantity and in the third yr they’re giving 100 occasions extra cowl. At the identical time, Nippon India is offering 120 occasions the duvet of SIP quantity, the Live Hindustan report stated.
If you make investments Rs 1000 per 30 days in an SIP scheme with insurance coverage cowl, then you’ll get a canopy of Rs 10,000 in the primary yr, a canopy of Rs 50,000 in the second yr and a canopy of Rs 1 lakh in the third yr. This means, the nominee of the SIP investor in the case of an unexpected dying in the third yr will get Rs 1 lakh together with the mutual fund corpus. However, the fund homes are solely giving this profit to new traders. Older traders must begin a brand new SIP to avail of this scheme.
If an investor has availed insurance coverage cowl with SIP, then he must make common funding for at the least three years. Termination of SIP earlier than three years will finish the good thing about time period insurance coverage. At the identical time, after operating the SIP for 3 years, he’ll proceed to get the good thing about time period insurance coverage. However, the quantity of canopy can be lowered when the funding is stopped, the Live Hindustan report added.
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