Mutual Funds (MF) are one of the best investment vehicles to create wealth in the long run. And Systematic Investment Plan (SIP) the best way to invest in them. What if the Mutual Fund companies start offering free insurance with MF SIPs in their schemes! According to me it’s an excellent opportunity to start doing SIP and enjoy the free life Insurance.
This post talks about one such product – Birla Sunlife Century SIP (CSIP). I would soon write about other AMCs like Reliance and Kotak offering free life insurance with their schemes.
Birla Century SIP as the name suggests gives you a cover of up to 100 times your monthly SIP.
Below are the details:
Minimum: Rs. 1000 per month
Maximum: No upper limit
Investors should note that once CSIP is availed, CSIP amount cannot be changed through the tenure of SIP.
Minimum Age at entry: 18 Years
Maximum Age at entry: 46 Years
In case of joint unit holders in the scheme, only the first unit holder would be eligible for the insurance cover.
Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are elligible to invest in Birla Sun Life Century SIP subject to fulfillment of certain additional criteria.
Maximum Tenure: 55 Years less the current completed age of the investor
e.g. For an investor at the age of 40 yrs 5 months, tenure of Century SIP shall be a period of 14 years and 7 months i.e. period remaining for the attainment of 55 yrs of age.
The Century SIP can be discontinued under following circumstances:
There shall be no provision to revive the Century SIP, once discontinued
Load Structure under Century SIP would be:
Entry Load: Nil
Exit Load: As applicable to respective schemes
In the unfortunate event of death of the investor, there is no exit load.
Amount of Life Insurance Cover:
All the above mentioned limits are subject to maximum cover of Rs. 20 lacs per investor across all schemes/plans/folios.
If Century SIP discontinues, the insurance cover would be as follows:
The Insurance cover will start from the commencement of Century SIP. However, only accidental deaths will be covered for the first 45 days.
The insurance cover shall cease upon occurrence of any of the following:
No insurance cover shall be admissible in respect of death of the unit holder (the insured investor) on account of –
There are 23 schemes available for investment:
I think its a good offering from Birla Sunlife Mutual Fund. There are some funds like Birla Sun Life Dividend Yield Plus, Birla Sun Life Midcap Fund, Birla Sun Life Frontline Equity Fund which are top rated funds. So if you were planning to invest in any of their schemes, taking Century SIP route is a great idea!
You can download Birla Sunlife Century SIP at their website here.
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