Varun who is 34 years of age working in an IT company with a well rewarding package. Varun is married and has a 4 year old son. He owns a dream house and drives his dream car which he has bought with the help of a Bank loan. Apart from the EMI he pays he also invests regularly in Mutual funds through Monthly SIPs. He has managed to create a decent corpus as he has been investing in SIP for 4 years now, Rahul Mohata, COO, 121policy.com narrates the story. 
 
Things were going well, but Varun died in an unfortunate Motor Accident, leaving behind a bereaved family. Since he had been saving in SIP for some time, the family looked to survive with the same, however within a few days, Banks knocked on their doors for their EMI’s which has been due and sought repayment, Mohata added. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The family had two options :

  • Pay from their Mutual Funds Corpus and clear the dues. The funds were just enough to meet the liabilities.
  • Surrender the Home and the Car to the lenders.

Invest Rs 1 lakh to earn 37 times more return in 20 years
An SIP can help you save entire interest amount on your home loan
Here's how young parents can save for their child's education
Retirement Fund: What is a Systematic Withdrawal Plan and why you should consider it