Is ICICI Pru SIP Insure good for long term investors??????

POSTED BY deepakgudla ON May 25, 2012 5:27 pm COMMENTS (10)

Dear all,

Can some one through light on newly launched (may be newly observed by me 🙂 ) ICICI Pru SIP Insure..???

The details i understood from the website:
1. There are some 16 mutual funds where we can invest under this new scheme
2. Insurance cover is free
3. Insurance cover is applicable if we continue the SIP (min Rs. 1000/month) for at least 3 yrs

As the insurance is at free of cost, and any one who is looking for long term investment (especially in those 16 MFs of icici), i feel that this is an added advantage…..

Please add your views… also correct me if my understanding is wrong about SIP insure…



10 replies on this article “Is ICICI Pru SIP Insure good for long term investors??????”

  1. deepakgudla says:

    Hello All,

    As i already mentioned, if you have plans in doing SIP with any one of those 16 ICICI mutual funds, you can take this option of additional insurance of free of cost…

    Please do not add this insurance cover to your target insurance as this SIP insure has so many other T&Cs.

  2. Pramod Yadav says:

    The insurance cover is free. but there r many terms n conditions.
    Talking specifically about reliance terms n conditions r
    Age 45 or below
    Age covered up to 55 only
    max insurance cover up to 10 lac
    Premature withdrawal or 2 SIP Bouncing, insurance benifit gone
    Min amount 1000 , min period 36 months.
    Please note only the unpaid installments r covered so over a period of time sum assured keeps on decreasing
    The insurance claim will be invested in the fund then the nominee or second holder can redeem units.

  3. Deepak,

    nothing comes free of cost. Atleast not the insurance. Is it written on broucher that Insurance is free? Insurance cost would be factored in. Dont mix your investment and insurance.

    1. Actually Life Insurance is really FREE in this this . AMC is bearing the cost of mortality charges on its own , they can actually afford to do so . They will pay it from expense ratio anyways .

  4. deepakgudla says:


    The Value of Sum insured is just 100 times of monthly SIP. It is very small but if it is free and any one in their financial plan, has a goal of investing in ICICI MFs, then they can look for this option…

    1. Dear Deepak, do you really feel it’s free insurance? Please check again the T & C of this SIP Insure thing & specially the lock-in part.



      1. deepakgudla says:

        Hello Ashal,

        I checked with call center of ICICI MF.

        1. They agreed that the insurance is free of cost…

        2. The investments are same as investing in mutual funds… you can come out at any point in time….. But ICICI is providing this free insurance if you continue till 3yrs ( strictly no withdrawal/partial withdrawl)…

        3. (In the 16 funds, there are children plan, Tax plan.. Those rules will apply as usual… Addition to that, if the investment continues for 3 yrs, issuance will be provided….

        1. Dear Deepak, please check the below link –

          Read T & C on page no. 15 to 17.



  5. Ramesh says:

    What are the advantages? Try and calculate the sum assured and also see the limits. At best, the value of the Insurance is small. BUT…

    If SIP+Free Insurance compels someone to put money in equity funds continuously (forced saving) for a long time, it is a good thing.

    Even Reliance MF does the same.

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