Product Crack: Secure Mind
It's an add-on product launched by ICICI Securities Ltd and ICICI Lombard General Insurance Co. Ltd.
ICICI Securities Ltd and ICICI Lombard General Insurance Co. Ltd recently launched an add-on product called Secure Mind. The customers of ICICIdirect.com will get an additional medical insurance when they enter into a systematic investment plan (SIP). The underlying thought for adding such a facility is to ensure that if you have a serious medical illness and bills to pay you shouldn’t have to redeem investments made through SIPs.
What is it?
You can add on the insurance to your SIP. The way it works is that if you buy any SIP on ICICIdirect.com, you will be able to attach this policy at an additional charge. It is a fixed benefit policy which means that the amount of sum assured will be paid out if the policy gets invoked. The policy will start when you stop the SIP owing to medical condition. Redeeming existing units doesn’t have a bearing as long as the SIP itself continues. The sum assured is the total value committed through SIP up to a maximum of 15 lakh. The policy covers accidental death, permanent disability and critical illnesses such as cancer, heart attack and stroke paralysis, among others. It also covers loss of job to an extent and pays out 2% of the sum assured for three months.
So, if you are diagnosed with any of these critical illnesses or have been in a severe accident and in no position to continue your SIP, then you can stop paying the monthly instalments and the policy gets invoked. Once you stop and the claims of illness or accident are verified you will receive the sum assured.
For example, you want to start a SIP of 10,000 per month for two years, that’s a total commitment of 2.4 lakh. This is your sum assured; any increase or decrease in the investment value due to market changes will not impact this. For a male aged 35, at an additional cost of 90 per month, you can get the policy with a 2.4 lakh sum assured attached to your SIP. The additional amount doesn’t increase annually and you pay till the time the SIP continues. Once, you have received the claim you can use as per your judgement and even restart SIPs as you like. The facility is available for people in the age group of 20-50 years. There is no need for a medical test, however, you must declare any pre-existing illnesses.
Mint Money Take
There are some clear advantages. Firstly, the additional premium for this facility is low and very affordable. Secondly, it is not restricted to any particular asset manager or even fund type. You can avail this no matter which mutual fund you want to make the SIP in as long as you transact through ICICIdirect.com. All the processing and claim issues will be handled by ICICI Lombard when the need arises. However, on the policy front the number of critical illnesses and medical procedures specified is very low at 9. Most other health insurance policies on similar lines cover at least 13-14 critical illnesses.
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