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Life Insurance Cover |
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The Insurance cover available with Century SIP will be absolutely free for the investor. The cost of insurance will be entirely borne by the AMC. |
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100 times Insurance |
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In the unfortunate event of the demise of an investor during the tenure of the SIP, the nominee gets the Fund Value + Insurance Cover equivalent upto 100 times monthly SIP installments. The insurance cover offered to the investor grows with the tenure of the SIP as shown below: |
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| Year |
Life Insurance Cover |
| 1 |
Monthly SIP Installment x 10 |
| 2 |
Monthly SIP Installment x 50 |
| 3 |
Monthly SIP Installment x 100 |
| 4 onwards till end of tenure |
Monthly SIP Installment x 100 |
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All the above mentioned limits are subject to maximum cover of Rs. 20 lacs per investor across all schemes/plans/folios. |
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Insurance Tenure & discontinuation of CSIP |
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The tenure of CSIP is 55 yrs – Completed age of Investor. The life insurance cover offered to the eligible investor would continue even if the SIP stops after a minimum period of 3 years at the fund value subject to a maximum of 100 times of the monthly SIP installment. The cover ceases to exist on full/partial redemption or switching prior to completion of the SIP tenure.
Please refer to the following flowchart:
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No Paper Work |
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To avail of the life cover all an investor needs to do is enroll for a CSIP & sign a “Declaration of Good Health”. In case of unfortunate demise of investor the insurance claim will be directly paid to the nominee by the insurance company (Birla Sun Life Insurance Company). |
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Benefits to Family / Nominee |
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In the unfortunate event of the demise of an investor during the tenure of the SIP, the nominee gets the Fund Value + Insurance Cover equivalent upto 100 times monthly SIP installments. Also no exit load will be cahrged for redemption / switching out of units by the nominee.
Consider the following example:
Assuming a scenario where in an investor had started a 10 year CSIP @ Rs. 20,000 pm installment and a rate of return @ 8%p.a.
On completion of the CSIP tenure, value of investment and insurance cover would be Rs. 36.59 lakhs and Rs. 20 lakhs respectively.
The illustration below explains the same. |
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Century SIP v/s other SIPs with Life Insurance |
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| Features |
Other SIPs with
Life Cover* |
Century SIP |
Comparison |
| Sum Insured |
Depends on tenure of SIP |
Upto 100 times Monthly SIP installment |
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| Max Rs. 10 lac |
Max Rs. 20 lac |
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Sum Insured
(if SIP stops before maturity) |
No insurance cover |
Cover continues, if SIP stops after 3 years, @ fund value, subject to maximum of 100 times monthly SIP installment |
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Life Cover Proceeds
(in case of pre mature death) |
Goes to AMC towards payment of remaining SIP installments |
Goes to the nominee |
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Benefits to Nominee
(in case of pre mature death) |
Fund Value + Life Cover equivalent to outstanding SIP installments |
Fund Value + Life Cover equivalent upto 100 times SIP installments |
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| Minimum SIP Installment |
Rs. 2,000 pm |
Rs. 1,000 pm |
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| Entry Load |
2.25% |
2.25% |
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| Exit Load |
2% throughout the tenure of SIP |
2% upto 3 years & Nil thereafter |
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Exit Load
(in case of pre mature death) |
2% on Fund Value and also on Insurance amount |
Nil |
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| Age Group |
20 Yrs to less than 46 Yrs |
18 Yrs to less than 46 Y |
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| Maximum Age upto which Cover is Available |
55 Yrs |
55 Yrs |
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| MinimumTenure |
3 years |
3 years |
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| Maximum Tenure |
15 years |
37 years |
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| Payment Options |
ECS & Direct Debits |
ECS, Direct Debits & PDCs |
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* Based on Published Information of other available SIPs |
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Savings over Term Insurance |
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Century SIP is advantageous to you as an investor over traditional Insurance products. For example, refer to the calculations of Term Insurance v/s Century SIP given below: |
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Century SIP @ Rs. 20,000 pm
Life Cover – Y 1 = Rs. 200,000;
Y 2 = Rs. 1,000,000; Year 3 onwards = Rs. 2,000,000
| Features |
Term Life Insurance Premium for Various Ages |
| 35 Yr |
45 Yr |
| Year 1 |
Year 2 |
Year 3 |
Year 1 |
Year 2 |
Year 3 |
| Sum Insured |
Rs. 2 lac |
Rs. 10 lac |
Rs. 20 lac |
Rs. 2 lac |
Rs. 10 lac |
Rs. 20 lac |
| Premium Payment Term~ |
1 Yr |
1 Yr |
18 Yr |
1 Yr |
1 Yr |
8 Yr |
| Annual Premium^ |
Rs. 800 |
Rs. 4,000 |
Rs.8,000 |
Rs.1,315 |
Rs.6,575 |
Rs.13,150 |
| Total Premium |
Rs.800 |
Rs.4,000 |
Rs.144,000 |
Rs.1,315 |
Rs.6,575 |
Rs.105,200 |
| Total Savings |
Rs. 148,800 |
Rs. 113,090 |
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In Century SIP, you end up saving the Premium that you would other wise pay in case of term insurance. |
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