Personal Finance Blog India –

SIP-Insure Facility From ICICI-Prudential Mutual Fund:

ICICI-Pru mutual fund have introduced insurance facility along with  systematic investment plans (SIP).Few years back Reliance mutual fund and Birla have introduced this concept.Few frequently asked questions about ICICI-Pru SIPInsure facility are as follow:

1.What is the entry age limit?

  • Min.Age of Entry: 18 Yrs.
  • Max age of Entry: 46 Yrs.

2.Upto how much age investor is covered?

Investor is covered upto age of 55 yrs.

3.What is the maximum tenure of SIP facility?

Max tenure is calculated as: 55 Yrs – Current age.

For age of 35 yrs,total term of SIP through SIP-Insurance facility will be : 55 – 35 = 20 Yrs.

4.How sum insured is calculated under this facility?

Investor will get insurance cover (exclusive of fund value) as follows:

  • First Year:10 Times ┬áthe monthly SIP Insure installment.
  • Second Year:50 Times the monthly SIP Insure installment.
  • Third Year Onwards:100 Times the monthly SIP Insure installment.

5.What is the maximum ceiling of insurance cover?

Max insurance cover offered is Rs.20 Lakh per investor.

6.What if I stop SIP in between?

There are two probabilities:

  • If SIP discontinued before 3 Yrs:If SIP is discontinued before 3 yrs then insurance cover will be ceased.
  • If SIP is discontinued after completion of 3 yrs,then insurance cover will continue,subject to max cover of 20lakh.

7.What is entry load and exit load if this facility is opted?

There is not any entry load.Exit load is 1% if units are redeemed before completion of 1 yr and NIL thereafter.

8.I have ongoing SIP with ICICI Prudential.Can I opt for SIP-Insure facility?

In this case, you need to close the existing SIP and start a new SIP with this facility.New and separate folio will be generated for this facility.

9.Who will pay for the cost of insurance?

Asset management company will pay the premium and this is a free facility to investors.

10.How claim will be settled under unfortunate death of unit holder?

In case of death of unit holder Maturity proceeds(Fund value + Life cover) will go to nominee and claims can be settled directly with the insurance company.

11.Can I make transactions like additional purchase,STP in the folio having SIP-Insure facility?

If investor make above transactions in the said folio then insurance cover will be ceased.

12.What are the exclusions for life cover provided?

  • Death of unit holder within 45 days (except accidental) will not be covered.
  • Suicidal death within one year will not be covered.

13.How this facility is different from that offered by Reliance SIP + Insurance facility?

Reliance SIP+Insurance facility have different theme than offered by ICICI-Prudential AMC.Cover is based on unpaid installments of the investor and I would prefer to opt for Reliance facility than that of facility provided by ICICI Prudential.Though there is exit load of 2% for Reliance SIP facility,one may not mind as he is being covered by the company for the said sum assured.



Category: Mutual Funds


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