Mutual Funds with free built-in life insurance cover
Mutual funds with built-in life insurance cover are becoming increasingly popular as they combine the benefits of both investment and insurance. Notable examples include Aditya Birla Sun Life, ICICI Prudential, and Nippon India SIPs, which offer additional protection through life or accident insurance to investors who continue their Systematic Investment Plans (SIPs) for a specified period.
Some mutual funds provide dual benefits — a potential for capital appreciation and financial security for the investor's family.
The insurance coverage is typically a term insurance policy or an accidental death benefit, ensuring that in the event of the investor’s demise, their beneficiaries are financially protected. It’s important to note that these covers are not a substitute for comprehensive life or health insurance policies, but are rather an added advantage for long-term SIP investors.
These mutual funds offer a convenient and cost-effective way to blend investment with life insurance protection, making them attractive for risk-averse investors seeking long-term financial security.
