TIP and SIP together can help you secure your future, heres what they are
A TIP makes the financial plan death-proof and allows you to do SIPs to earn returns.
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.
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.
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