ICICI Securities, ICICI Lombard launch new product for MF investors

Broking house ICICI Securities and private non-life insurer ICICI Lombard General Insurance have recently launched Secure Mind, a general insurance product meant for the former's mutual fund SIP (systematic investment plan) investors.

Under the arrangement, the product will insure those investing in mutual fund SIPs through ICICIdirect.com against job loss, accidental death, permanent total disability and nine critical illnesses. Instead of discontinuing SIPs or redeeming mutual fund investments to fund the hospitalisation expenses, investors can make a claim under the insurance policy.

The amount of sum insured will equal to the cumulative value of investment through SIP, subject to an overall cap of Rs 15 lakh. To be able to buy the cover, your total value of SIPs should amount to at least Rs 60,000. Investors in the age-group of 20-50 years are eligible to opt for this facility. The premium to be paid will depend on the investor's age and the investment amount.

Upside: Buying the cover will help you avoid situations where your investment has to be redeemed to fund hospitalisation bills. Also, those over 45 who have to go through medical tests when they buy independent policies will not have to do so in this case.

Downside: Like any bundled insurance product, the continuation of insurance cover is linked to the tenure of your investment. This cover will cease to exist once you make a claim or redeem the mutual fund units, unlike independent covers that can be renewed annually.