Many mutual fund houses in India have added a fresh feature in their schemes – insurance benefits at no additional expense to tap into its popularity. This scheme enables investors who decide on a systematic investment plan (SIP) for wealth creation to have the simultaneous benefits of insurance cover without additional costs.
You can avail of the insurance option while finishing up the SIP investment form. You will get group insurance policy offers at no expense. Such features could be availed by investors in the 18-51 generation.
Investors should know the fund-specific details prior to opting for such investments. Terms and conditions vary from one fund house to some other. Add-on insurance is new to mutual funds. Since the coverage is part of a group insurance coverage, in the event of the claim, you will be required to contact the insurance company that has partnered in this product rather than the mutual fund house.