Reliance Mutual Fund has recently launched a new unique product "SIP Insure". SIP insure is a Mutual Fund feature of Life Insurance cover in which a person applying for mutual Fund scheme also get Insurance coverage to the extent of unpaid SIP installment due, without any extra cost. For example a person applies for an SIP in any applicable scheme for 10 years and opt for this feature, and he dies in between, the Reliance Life Insurance company will pay the remaining SIP amount to its nominee account. Nominee can either withdraw whole amount or can take partial withdrawal. In short this feature enables an SIP investor a guarantee of SIP installments even if he is no more.
This unique feature has been added in association with Reliance Life Insurance company under group insurance scheme. But there are some criteria to be fulfilled for getting this feature free of cost. First of all SIP monthly installment should be Rs. 2000/- or more. Applicant should not be less than 20 years and not more than 46 years of age. The minimum SIP tenure should be for 3 years and maximum SIP maturity age of 55 years. This Life insurance feature will definitely strike to the investors as they get free Insurance cover without any additional cost. This facility is possible because of group life insurance schemes. (Please read all details and terms and condition in the offer document of the schemes offered before investing).
HSBC Mutual Fund, Birla Sunlife Mutual fund, Kotak Mutual Fund has also launched schemes similar to this. HSBC "SIP Plus" is giving free critical illness cover in open ended equity schemes and Birla Sunlife Mutual Fund is giving Life insurance cover of 50 times of SIP amount in first year and 100 times of cover in second year onwards. These types of schemes will be a drawback for Life insurance agents selling insurance plans which charge for providing insurance cover.
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