The SIP ( Systematic investment plan) route is very popular among investors for long term savings towards their financial goals. Banking on this popularity, ICICI Direct, an online trading and investment website, in collaboration with ICICI Lombard General Insurance has launched a product called “Secure Mind”.

Secure mind is a facility offered to the customers of ICICI Direct investing in Mutual Fund SIPs through their online platform to insure their estimated total investment value of the SIP investment by buying an insurance for an equivalent value at a nominal extra charge.

The features of this plan –

1. The cumulative value of all the SIP installments should be between Rs. 60,000/- and Rs. 15 lakhs, which are the minimum and maximum limits respectively for the insurance amount. For eg- If Mr. A starts an SIP for RS. 5000 per month for 3 years, under secure mind, he will be insured for a value of Rs 1,80,000/- ( 5000 * 12 * 3).
2. The insurance covers accidental death, permanent total disability due to death, nine critical illnesses and loss of job due to layoff (2 % of sum insured per month).
3. The premium for the sum insured is payable with the SIP instalment every month.
4. This product is available to people in the age group 20 – 50 years, no medicals are required and just a good health declaration is enough.

The benefits

One of the main features of this plan is an insurance cover at a much lower cost than a stand alone cover. Also, it ensures that one’s SIP continues uninterrupted, even in case of unforeseen circumstances as one need not redeem the SIP amount to pay for the expenses. The sum insured which is paid out can be utilized. Another plus is that this facility is not scheme specific or fund specific. One can research and choose any mutual fund SIP based on performance, rankings, track record etc.

But, while this is a good add on feature to protect one’s investment, this cannot replace or substitute your regular mediclaim or life insurance policy.

DISCLAIMER : All the views expressed here are just for informative purposes only and do not constitute or indicate any kind of investment recommendation.