SIP Insurance is nothing but life insurance cover given with the monthly installment. The SIP give insurance option just like ULIP, but here is no charges for your insurance cover. The insurance cover not offer individual but its group cover.
The basic idea is to get you to remain invested & use SIP as a long term investment.
Mutual fund (MF) schemes that include insurance coverage as part of the investment have been banned by SEBI.
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The SIP that has insurance coverage registered before the effective date would continue to have the coverage as before prescribed.
Nippon India SIP Insure, Birla Century SIP & ICICI SIP Plus now discontinue for new investor.
Birla SL Century SIP
Birla SL Century SIP
The Birla Sun Life Century SIP (Insure) provides an insurance cover between 10 and 100 times the SIP investment made by the investor.
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No additional charge for this cover, don’t make the mistake of thinking that these are like unit linked insurance plans (Ulips). If you start normal SIP and one Century SIP . Your fund grow similar.
| Sum Insured | 1st Year : 10 times of the monthly SIP Plus instalment 2nd Year : 50 times of the monthly SIP Plus instalment 3rd Year : 100 times of the monthly SIP Plus instalment |
| Maximum Cover | Maximum cover of ₹ 50 lakhs per investor across all schemes/plans/folios. |
| Life cover proceed | Provides to Register Nominee |
| Benefit to Nominee – | Scheme Fund Value + Life Cover |
| Age Entry | 18 Year to 51 Year |
| Exit | Insurance cover will be ceased on completion of 60 Years of age |
| Minimum SIP | 1,000 |
For instance, if an investor makes a monthly SIP of Rs 10,000, he will be eligible for a Rs 1,00,000 insurance cover in the first year. It increases to 5,00,000 (50 times) in the second year and 10,00,000 (100 times) in the third year and beyond.
No medical check-up required only a signed declaration of good health from investor.
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Terms & Conditions:
If SIP Insure discontinues, the Insurance cover would be as follows:
- SIP Century discontinue before 3 years : Insurance cover stop immediately.
- SIP Century discontinue after 3 year : Insurance cover equivalent to the value of unit allotted under SIP Insure investment at start of each policy year, subject to maximum of 100 time the monthly installment, capped at the maximum of 50 lakhs.
Cessation of Insurance Cover:
The insurance cover shall cease upon occurrence of any of the following:
- At the end of tenure i.e., upon completion of 60 years of age.
- Redemption / switchout (fully or partly)
ICICI SIP Plus
SIP Insure, a product of ICICI Mutual Fund, allows for both life insurance coverage and investment for investors.
“SIP Insure is an extra, optional feature that is offered for equity schemes. To further assist investors, the Asset Management Company will pay for all insurance costs. There are simply a few fields that need to be filled in; no additional paperwork or medical checks are necessary.
The Birla Century SIP feature is comparable to this one.
Key Feature
The feature will have a uniform insurance cover.
| Sum Insured | 1st Year : 10 times of the monthly SIP Plus instalment 2nd Year : 50 times of the monthly SIP Plus instalment 3rd Year : 100 times of the monthly SIP Plus instalment |
| Maximum Cover | Maximum cover of ₹ 50 lakhs per investor across all schemes/plans/folios. |
| Life cover proceed | Provides to Register Nominee |
| Benefit to Nominee – | Scheme Fund Value + Life Cover |
| Age Entry | 18 Year to 51 Year |
| Exit | Insurance cover will be ceased on completion of 55 Years of age |
| Minimum SIP | 1,000 |
For instance, if an investor makes a monthly SIP of Rs 5,000, he will be eligible for a Rs 50,000 insurance cover in the first year. It increases to 2,50,000 (50 times) in the second year and 5,00,000 (100 times) in the third year and beyond.
Terms & Conditions:
Convenience
No additional document or medical test are required, only certain detail are to fill up
If SIP Plus discontinues, the Insurance cover would be as follows:
- SIP Plus discontinue before 3 years : Insurance cover stop immediately.
- SIP Plus discontinue after 3 year : Insurance cover equivalent to the value of unit allotted under SIP Insure investment at start of each policy year, subject to maximum of 100 time the monthly installment, capped at the maximum of 50 lakhs.
SIP Cease under following conditions :
- The end of tenure i.e., upon completion of 55 years of age.
- Redemption / switchout (fully or partly)
Entry / Exit Load
Entry load : NIL Exit Load : 1% if redeemed within 1 year, NIL thereafter
Benefit to Nominee : (in case of Pre-mature death)
Fund value + Life cover equivalent upto 100 time the monthly SIP Insurance Installment third year onwards.
AMC may provide all Resident Individual/NRI applicants a Group Life Insurance Cover provided by ICICI Prudential Life Insurance Company Ltd. and reimburse the premia towards such cover. Non-individuals, US Persons, People of Indian Origin, and Sole Proprietors are not covered by the insurance.
The insurance will only provide coverage for the First/Sole unitholder. The second or third unitholder will not be covered by insurance.
Following is the list of schemes where the SIP Insure facility will be applicable:
ICICI Prudential Infrastructure Fund, ICICI Prudential Dynamic Plan, ICICI Prudential Focused Bluechip Equity Fund, ICICI Prudential Tax Plan, ICICI Prudential Discovery Fund, ICICI Prudential MidCap Fund, ICICI Prudential Top 100 Fund, ICICI Prudential Top 200 Fund, ICICI Prudential FMCG Fund, ICICI Prudential Balanced Fund, ICICI Prudential Technology Fund, ICICI Prudential Services Industries Fund, ICICI Prudential Equity & Derivatives Fund – Volatility Advantage Plan, ICICI Prudential Indo Asia Equity Fund, ICICI Prudential Banking & Financial Services Fund, ICICI Prudential Child Care Plan – Gift Plan.
My personal View about this Product : I am using Birla Century Plan for my investor, and personally not like ICICI pru plan it's copy of Birla. Nippon India SIP insure is now discontinue from Jun 2022.
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