SIP WITH FREE TERM INSURANCE COVER – FAQS
SIP WITH FREE TERM INSURANCE COVER – FAQS
- How can I invest in SIPs through my ESFB Savings Account?
You can invest through WMS (Wealth Management System) which is available on Internet Banking as well as Mobile app. It is a highly convenient user-friendly platform that is in line with the best in the industry. Through this system, clients can save towards their dreams and track achievement of their financial objectives separately.
- Is there any other feature in WMS?
You can track Asset Allocation, Scheme Allocation and even Security Allocation. You can even track what Fund Manager is doing with your investment and which share / debenture he is finally buying from your funds. You can even track your tax reports through the system.
- What is SIP with Free Insurance Term Cover?
It is a unique offering that is made available to you by Equitas SFB. Under this offering, when a customer does his regular SIP in a select scheme, s/he gets a free Insurance Term Cover up to 120X of SIP Amount. Currently Equitas SFB is offering this unique offering through three Mutual Funds namely ICICI Prudential Mutual Fund, Nippon India Mutual Fund & Aditya Birla Sunlife Mutual Fund.
- Who brings the Free Insurance Term cover to me?
The three Mutual Fund companies where Equitas SFB has empaneled (as mentioned above) bring the Free Insurance Term Cover to you. You do not have to pay any DIRECT or INDIRECT cost for this insurance, as it is completely free.
- What is the direct and indirect cost of this insurance to me?
ZERO. There is no direct or indirect cost of this insurance term cover.
- Why does such a high Term Cover not even require any medicals?
When you invest in this unique offering, you become a part of Group Life Insurance purchased by the Mutual Fund (at their own cost) for all unit holders. Being a part of Group Life Insurance, you do not need to go through medicals also. It is like Bulk Life Insurance deal which comes to you, at NO Cost whatsoever, when you invest in this offering.
- What is the minimum investment & SIP tenure that for this product?
Minimum SIP Tenure for this product is 3 years which means 36 monthly instalments
- Is there any other eligibility Criteria for the insurance term cover?
The Group Life Insurance cover will be available to all Resident Individual/NRI applicants aged between 18-51 Years, at the time of the first investment. The date of birth is taken from proofs submitted by you at the time of opening of Bank Account with Equitas SFB. The detailed Mutual Fund wise age criteria is also provided later in this document.
- Tell me the Key criteria or conditions attached to the product.
The noteworthy criteria and conditions are as follows:
S. No Important Criteria ICICI Prudential Mutual Fund Nippon India Mutual Fund Aditya Birla Mutual Fund 1. Max Cover (Total Rs. 1.5 Cr) Rs. 50 Lacs Rs. 50 Lacs Rs. 50 Lacs 2. Min Age at SIP Registration 18 Years 18 Years 18 Years 3. Max Age at SIP Registration 51 Years 51 Years 51 Years 4. Min SIP Rs. 1,000 Rs. 1,000 Rs. 1,000 5. Max SIP (To avail max cover) Rs. 50,000 Rs. 42,000 Rs. 50,000 6. First 3 Months Cover Nil Nil Nil 7. Cover between 3-12 Months 10X SIP 10X SIP 10X SIP 8. Cover between 13-24 Mnths 50X SIP 50X SIP 50X SIP 9. Cover post 24 Months 100X SIP 120X SIP 100X SIP 10. Max Age of Cover Validity 55 Years 55 Years 60 Years 11. Minimum SIP Tenure 3 Years 3 Years 3 Years
- In case I am already running SIPs, does it make sense for me to stop those SIPs and start under this scheme?
Yes, it would be wise to stop your existing SIPs and start new SIP under this option. You get the same mutual fund scheme, same NAV, same growth along with the free insurance term cover. Please also read the next question.
- Should I redeem all my existing SIPs that are running without any free insurance cover?
No, the wise action would be only to stop the additional installments in your existing SIPs and start fresh SIPs under this offer. You should not redeem your running SIPs. Every Mutual Fund house gives you option to only Stop SIP without redeeming
- How many people can be covered in this insurance offer?
Only the First / Sole unit holder will be covered under the insurance. No insurance cover will be provided for the second / third unit holder. To get them the benefit of this product, you can invest SIP in their names as well – In fact, in that case your cover eligibility will be higher by Max Rs. 1.5 Cr per additional member of your family. Equitas SFB will assist you in opening the bank account of the family member along with enabling the product.
- If I want to start the SIP with first Rs. 12,000 – which Mutual Fund scheme should I buy to start with ?
While you can choose any of the qualifying scheme, financially the most beneficial would be to subscribe for Tax Saver Schemes of above 3 Mutual Funds as it will you extra tax benefit as well (in case required by you). These should be long term SIPs, as they would carry triple benefit, which are as follows:
- Counted for Tax Benefits u/s 80 CCC of IT Act (up to Rs. 1,50,000 as per latest Act)
- Free Insurance Cover as per full benefit mentioned above
- Regular portfolio growth and wealth building in Equity as a normal Mutual Fund
When you do above, you not only invest in Mutual Fund SIP, you also save up to Rs. 51,000 of Income Tax every year (assuming highest slab rate). Above all, the insurance cover of 100X to 120X also comes free from the end of 2nd year.
You cannot really ask for more to start with!
- My SIP instalment is MISSED/ SKIPPED/ STOPPED due to whatever reasons (financial or nonfinancial) – what would happen to my investments?
No impact on your investments units in case your SIP is skipped, stopped or withdrawn. They are as safe as they can be. However, the free cover is withdrawn in case the SIP is skipped, stopped or withdrawn. This impact is explained below:
S. No. SIP Skipped/ Stopped/ Missed or Withdrawn ICICI Prudential Mutual Fund Nippon India Mutual Fund Aditya Birla Mutual Fund 1. Within 3 years mandatory period Free Cover is withdrawn completely Free Cover is withdrawn completely Free Cover is withdrawn completely 2. After 3 years mandatory period Free Cover = Value of SIP Units Free Cover continues at 120X SIP value Free Cover = Value of SIP Units
Hence, this could be treated as your primary SIPs. In case due to some financial reason you need to stop the SIP or skip the instalment, these SIPs should be the last one to get impacted.
- What happens to the insurance cover if there is a partial or full redemption?
Free Insurance cover is withdrawn completely from the date of partial or full redemption. Hence, this should be your primary SIPs. In case due to some financial reason you need to stop the SIP or skip the instalment, these SIPs should be the last one to get impacted.
- I am already covered for Life Insurance – will I still be entitled to this additional term cover?
Yes. This being a group life insurance, the cover would still be additional. In case you want detailed terms and conditions of the cover, we recommend you to read the Scheme Information Document.
- What are the exclusions for insurance cover in case of SIP insure?
The Group Insurance cover will be subject to the following exclusions and such other terms and conditions as may be prescribed by the insurance certificate governing the cover. We recommend you to read the detailed Terms & Conditions of the product on our website on the link referred above. We also want to mention following extremely note-worthy points:
- The Group Insurance cover shall not extend to cover instances of death due to suicide in the first year of cover
- Death within 45 days from the commencement of the SIP installments except for death due to accident
- Death due to pre-existing illness, disease(s) or accident which has occurred prior to the start of cover
- What are documents required for availing this insurance?
You are a part of Group Insurance, hence no separate documentation and no medicals are required.
- Who can submit the claim in case of death of the insured?
Nomination is compulsory exactly for this reason. The registered nominee can submit the claim request in case of death of the insured. You can check the nominee details from either Equitas SFB or from the Mutual Fund House directly. At any point in time, you can also change the nominee details as per your desire.
- How many days does it take for the sip insure claim to be processed in case of death of the insured?
It takes 45 calendar days for the Insurance claim to be processed from the receipt of Claim request by Life Insurance Company in case of death of the insured.