Aditya Birla Sun Life Mutual Fund (ABSLMF) has extended benefits of Century SIP (CSIP) facility in select debt funds. CSIP offers life cover of upto Rs. 50 lakh at no additional cost.
So far, the fund house has extended this benefit to specific equity schemes only.
Through this, an investor has the advantage of life cover benefit up to 100 times the monthly CSIP instalment amount or Rs. 50 lakh (whichever is lower) per investor across all schemes. CSIP requires an investor to invest regularly for the first 3 years. However, if the investor redeems his investment in the interim (fully/partially) before completion of CSIP tenure, the insurance cover will cease to exist. Post completion of three years of regular CSIPs, the life cover will continue till the investor is 60-year-old.
Anyone in the age band of 18year-51year is eligible for availing the optional facility of life cover under CSIP. The simple formula for the cover is 10-50-100 times. The life cover keeps on increasing for the first three years. In the first year, it will be 10 times of the monthly CSIP amount. Similarly, in the second and third year, it will be 50 times the monthly CSIP amount and 100 times the monthly CSIP amount, subject to a maximum of Rs. 50 lakh.