Hi all,

I am having a term insurance policy, wherein I need to pay premium of approx 9K per annum. However, I am planning to go for Systematic Withdrawal plan(SWP) option with monthly withdrawal, such that the monthly withdrawal will accumulate approximately little more than the premium per annum and the policy amount would be debited from my bank account using ECS way. Thus, in total, I need not worry about making payment toward term insurance policy annually.

And to add on, I am planning to accumulate the amount(approx 1L) in the following way.
1. Invest 30K in bulk towards MF(company X)
2. Accumulate 35K using MIP’s in 2 different companies (company Y and company Z).

Once I have accumulated 1L, then move the funds to MF SWP’s to get the earnings monthly.

Please let me know your thoughts(pro’s and cons). Curious to know, is there is any other better option? Note, initially, I thought of making an FD such that the interest earned out of FD annually would directly be fed to the policy. However, thinking, that such an option might not yield better return like SWP way.


I hope, I am clear!

Thanks in advance!
Sunil Kumar

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