Insurance & SIPs Through Mutual Funds App: Perfect Duo For A Secure Future

In the world of personal finance, most people focus either on growing wealth or protecting it, but rarely both. While Systematic Investment Plans (SIPs) are designed to build wealth steadily over time through the power of compounding, insurance ensures that your loved ones and your goals remain protected even when life throws a curveball. Together, they form a complete financial strategy, one that balances growth with safety.

SIPs help your money work for you, month after month, multiplying through disciplined investing. Insurance on the other hand, safeguards your family’s financial foundation, covering the uncertainties you can’t predict.

When combined, they create a perfect blend of wealth creation and risk protection, ensuring that your dreams continue to grow, come rain or shine.

Take Ritesh, for instance. At 28, he started a Rs 5,000 monthly safe SIP investment and simultaneously bought a term insurance plan worth Rs 1 crore. Over the next decade, his SIP corpus grew steadily, while his insurance policy ensured peace of mind for his family. Ritesh didn’t just invest, he built financial resilience.

Protection With Insurance

The tragedies of life knock the door uninvited, they drag you to the harsh realities of life. And if it's a financial pithole, your insurance will determine whether you would get the ladder to climb or not. As we say, “You can’t predict the rain, but you can carry an umbrella”

Having health and term-life insurance is so crucial that it is considered as a foundation of financial planning. Everything which is unpredictable and can cause a strain on your financial well-being must be prioritised.

Term-life -  A term-life insurance protects your family in case of a death or disability. Ideally, one should take the term-life plan at an early age to grab the low premiums. You can take a hefty cover of as much as Rs 1 crore to protect the future of your family.

However, there are a few points to be noted while buying a term-life plan:

• The premium you pay will not be credited to you on maturity, there are plans which do offer a lump sum amount on maturity but do not opt for them as they will further inflate your premiums. So, do not link your insurance with investments.
• A term-life plan can be delayed if you are young and do not have dependents on you. However, it should be a priority if you have family depending on you for financial needs.
• The premiums of the term-life plans are cheaper and affordable, so always try to get as much cover as you can. However, your income will determine your coverage.

Health Insurance - Having a health insurance policy is so important that it can save you from unexpected health expenses. The air you breathe can cause you death. According to a report, air pollution killed 1.67 million people in India in 2019, accounting for 17.8% of total deaths. Yet the insurance penetration remains much lower than the global average.

Understanding health Insurance is equally important before you buy it. Technical jargons like Waiting Period, Co-pay, Room Rent Capping, No Claim Or Restoration Bonus, Cashless and Reimbursements, Corporate Insurance etc should be looked at carefully.

SIPs: A Magical Tool For Compounding

Once the family and you are insured, the next step is to build enormous wealth with small steps. As the 13th century Persian poet Rumi said, “ You are not a drop in the ocean, you are the ocean in a drop. SIPs work in a similar way, these little investments every month turn into huge wealth in future with the magic of compounding.

● SIPs Return Over Time:

Imagine putting Rs 10,000 a month in best mutual fund to invest for long term at 12% CAGR can grow your wealth to Rs 1 crore in 20 years. Whereas, it can also grow to Rs 1.51 crore in 20 years with 15% compounded annual growth rate (CAGR) and to a whopping Rs 2.34 crores in 20 years with 18% CAGR.

The surprising part is, the investment amount is only Rs 12 lakh in 20 years. No gimmick, just simple maths and sense for protecting loved ones and creating wealth.

In this journey of securing the future, platforms like MINTIT, a trusted mutual funds application, stands with you as a trusted partner to fulfill all your financial goals across various types of mutual funds and SIPs. MINTIT, India’s dedicated Mutual Fund Platform which caters to your personalised goals and accompanies you to achieve your financial milestones is eager to help you build your wealth. Depending on your profile it precisely suggests tailored investing plans to achieve your goals.