Dont jump for insurance covers bundled with products Economic Times
Reliance Mutual Fund has been, of late, promoting its SIPInsure facility heavily. Birla Sun Life is another fund house offering a similar product named Century SIP. Under such schemes, typically, you invest under a list of specified schemes through the SIP (systematic investment plan) mode.
Should anything happen to you before the expiry of the scheduled investment period, the insurance cover will get triggered. For instance, under Reliance MF's SIPInsure facility, the sum assured, which is equal to balance SIPs, is invested in the same fund chosen by the insured, in the nominee's name.
And, obviously, you do not have to pay any premiums for the life cover, usually provided under a group insurance scheme. The costs are borne by the fund house from the fund management charges investors pay. But, redemption under such mutual fund-cum-insurance schemes may not be as simple as a regular fund.
"There could be additional costs in terms of higher exit loads
