Some banks are providing free life insurance coverage in case you open a hard and fast deposit (FD) with them. However such insurance coverage insurance policies include a cap and will have situations and a few restrictions.
Take DCB Financial institution Suraksha FD for instance. The financial institution has tied up with Aditya Birla Solar Life for the life insurance coverage coverage. It is accessible for these between 18 and 54 years. In response to the financial institution’s web site, prospects who’ve accomplished 55 years should not allowed to open Suraksha FD.
The life insurance coverage is equal to the quantity held within the mounted deposit. In case you have ₹1 lakh within the FD, the insurance coverage cowl is ₹1 lakh. Nonetheless, there is a cap of ₹50 lakh. For those who maintain greater than this restrict, the quilt will nonetheless be ₹50 lakh.
The rate of interest is 6.75% on the Suraksha FD, which is for a three-year tenure. There’s a restriction on the age and the tenure as there is a value connected to it.
ICICI Financial institution provides a free life insurance coverage cowl of ₹3 lakh. In response to its web site, the insurance coverage coverage accessible for one yr if the client opens an FD of ₹3 lakh or extra. The tenure of the FD ought to be over two years or extra. . It is accessible for patrons within the age group of 18 to 50. The financial institution provides the group cowl in partnership with ICICI Prudential Life Insurance coverage.
For each the banks, the life cowl is withdrawn in case of untimely withdrawal. Within the case of joint accounts, the financial institution covers the first holder.
As these mounted deposits include situations and restrictions, do not go for them just for the free life insurance coverage cowl. Go for them provided that you’d have chosen the financial institution with out the life cowl.
Additionally, do not depend on life insurance coverage that comes free with monetary merchandise like FD or mutual funds. Purchase a time period plan that gives a canopy of at the very least 10 instances your annual wage. These further cowl can solely additional enhance the first life insurance coverage coverage that you’ve got.
(Do you may have private finance queries? Ship them to mintmoney@livemint.com and get them answered by trade consultants)
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