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What is Sip Insure, and How It Works

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Created on
May 16, 2023


What’s Inside

Systematic Investment Plan (SIP) is a common way that you can use to invest in mutual funds. However, fluctuations in markets and uncertainty can have an impact on investment returns, resulting in losses. In this case, SIP Insure, a unique feature given by some mutual fund firms, can help you to reduce the risk of losses.

What is SIP Insure

SIP Insure or SIP Insurance is a distinctive service offered by select Indian mutual fund firms that provides insurance coverage to customers who have chosen a Systematic Investment Plan. This function aids in reducing the possibility of loss in the case of unexpected occurrences such as death or disability.

You can choose between a life insurance policy and a remission of future premiums with SIP Insure. This ensures your family's financial stability and guarantees that your investment goals are not endangered. However, the life insurance coverage or waiver of future premiums differs per mutual fund provider, thus, you should carefully evaluate the terms and conditions before investing.

How does SIP Insure work?

Here are two ways in which SIP Insurance works:

Life Insurance Cover

Under this, the mutual fund firm will provide you (the investor) with life insurance coverage for a sum equivalent to the entire value of your SIP contributions. The nominee will receive the promised amount as a death benefit in the event of your demise during the SIP term, and the SIP investments will proceed according to the initial strategy without any further contributions.

Waiver of Future Premiums

This feature states that in the event of your (the investor's) death or incapacity during the SIP term, the mutual fund provider will waive the future SIP premiums. Without any additional payments, the SIP investments continue according to the original plan, and your family receives the accumulated corpus when it hits maturity.

Benefits of SIP Insure

Here are some benefits of SIP Insure:


SIP Insure is an inexpensive way to obtain life insurance coverage since the premium is a modest fraction of the overall SIP investment.

Financial Security

In the event of unforeseeable occurrences like death or disability, SIP Insure offers financial protection to the investor's family. The life insurance coverage, or waiver of future premiums, assures that the investor's family's financial security and that their investment objectives are unaffected.


Since it is an add-on option to an existing SIP plan, SIP Insure is a hassle-free method to obtain life insurance coverage. There is no distinct application procedure for life insurance for investors.


SIP Insure gives flexibility as investors may select their preferred insurance cover amount and premium payment term.


SIP Insure is an excellent option for those who want to invest in mutual funds through SIPs but are worried about the risks involved. By opting for SIP Insure, investors can safeguard their investments and protect their families in the event of an unfortunate circumstance. Apart from this, you can also explore a commission-free mutual fund investment experience with Fi Money. With its intuitive user interface and over 900 active mutual funds.

Fi caters to seasoned and novice investors alike. EpiFi Wealth, a SEBI-registered investment advisor, powers Fi's investment feature. So, whether you plan to invest daily, weekly or monthly, this app lets you do it at the tap of a button! Plus, zero penalties for missed payments. Don't know where to start, why not check out Collections, a curated range of funds that suit every kind of investor!

Frequently Asked Questions

1. What is the SIP plan, and how it works?

A Systematic Investment Plan (SIP) is an investing strategy in which you can invest a certain amount of money on a monthly, quarterly, or yearly basis.

SIPs function by putting a certain amount of money into a mutual fund plan regularly, generally monthly. Under this, you can choose the amount and the frequency of the investment.

2. Do we get insurance in SIP?

Some mutual fund companies in India offer a feature called SIP Insure, which provides insurance coverage to investors who have opted for a SIP. This feature assists to reduce the likelihood of loss in the case of unanticipated events such as death or disability.


Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
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