ICICI – Direct & ICICI Lombard SIP -Insurance Secure Mind:
It may be first time where distributor of mutual fund have introduced some extra facility for the SIP investors. It has been introduced by ICICI Direct- in association with ICICI Lombard General Insurance and plan is SIP Insurance Secure Mind.
Features of SIP Insurance Secure Mind in brief:
- The investor with age in between 20 Yrs – 50 Yrs investing through ICICI Direct are eligible.Above age of 45,there will be medical test.
- Total investment value will be protected through this plan.E.g Investor investing through monthly SIP of Rs.3000/ – for 36 months..then total investment value will be = 3000*36=108,000..this will be the sum insured.
- This insurance is not free of cost and premium will of course depends on the SIP amount,tenure and in turn total investment value.
- This premium amount will be deducted alongwith monthly SIP amount.
- If investor stopped or even modified the SIP amount,then SIP insurance will be ceased.
- If there is a claim then it will be settled as lumpsum benefit.
Lumpsum benefit equivalant to sum insured will be paid under following conditions:
- Diagnosis of any one of the following illness,surgry,procedures: Cancer,End Stage Renal Failure,Multiple Sclerosis,Major Organ Transplant,Heart Valve Replacement,Coronary Artery Bypass,Stroke,Paralysis,Heart Attack (Myocardial Infarction).
- Accidental death / Permanent total disability.
- No benefit under circumstances of natural death.
- If there is loss of job due to layoff or retrenchment,benefit of 2% of Sum insured will paid for maximum up to 03 months.
View on Secure Mind SIP Insurance:
Investor need to review their mutual fund investment after certain period of time & this plan don’t offer any flexibility like changing / modifying mutual fund scheme or SIP amount.Mutual fund investors have better and cheaper option of Direct plans.This is not add on facility but paid facility and as well their are age restrictions. Considering these factors this plan is a disappointment.
As far mutual fund SIPs with extended features like free life insurance are concerned,such plans are still fine.But I don’t think plans like Secure mind are useful for mutual fund investors.
Please note:
If you are looking for Term + Critical illness insurance plan by ICICI Prudential Life insurance then :
http://www.saving-ideas.com/2015/12/review-icici-prudential-iprotect-smart-term-critical-illness-plan/
