Combining life insurance with SIP at no additional cost
If we look around and we will discover something smart about each and everything. Smartphones, Smart Homes, Smart Cards and many more basically the list is endless. To keep ourselves updated with these varying times, many companies have transformed the omnipresent Systematic Investment Plan (SIP) into Mutual Fund smart SIP for Smart Systematic Investment Plan in India. Basically, Smart SIP combines two very essential tenets of financial planning that is investment and contingency plan. Smart SIP does just that by adding together the profits of life insurance cover up with the regular SIP.
WHAT SMART SIP OFFERS?
What smart sip offers?
Free life Insurance Cover
In Smart Systematic Investment Plan in India, the life insurance policy comes for free, as we are not required to pay for it. The life insurance cover varies from 20 to 120 times of the monthly SIP instalment, subject to the utmost cover of ` 50lakhs per investor, transversely all schemes, plans and folios. Normally in an insurance policy, where one is required to make a statement of good physical condition during the time of taking the policy but with respect to this, there are no such rules in the case of Smart SIP.
Secure financial Future
According to the policy terms and conditions; your nominee would get the utmost amount guaranteed subject to a limit of ₹50lakh, taking away the uncertainties and doubts of what may happen to your economic plans. In case there is something inconvenient were to happen to you. The financial pad provided by Smart SIP takes all kinds of responsibilities of the financial prospect of your family members for whom you have dedicated and planned the investment.
Flexible Investment Option
The least SIP amount in Mutual Funds in India, to avail Smart SIP is ₹500 per month and in multiple of ₹, 1- after that and the SIP should be for at least three years. There is also no longing period for insurance cover, to begin with, this facility. Smart SIP is accessible with all open-ended equity funds (except a few). So if you want to access it, it is ready for you.
Understanding SIPS
- SIPS are a simple tool for long term savings
- SIPS help you to achieve your financial goals
- SIPS are not completely risk-free
- SIPS are flexible
Frequently asked questions
- What is a Smart SIP facility?
It is essentially a mutual fund scheme that invests in another mutual fund scheme. The plan is to branch out the benefit allotment by investing in a fundamental fund rather than in a straight line investing in stocks, bonds and other securities. In the end, this allows you an opening to invest in a range of companies without very high risk.
- What will happen if the Investor misses a SIP Installment?
Insurance Cover will not be continued if the investor fails to pay 3 consecutive SIP in the first 3 years of Smart SIP.
- Will there be any cost applicable to the investor for the insurance cover?
There will be no cost applicable to an investor for insurance cover.