Know the situation earlier than choosing a set deposit with free life insurance coverage
Some banks are providing free life insurance coverage if you happen to open a set deposit (FD) with them. But such insurance coverage insurance policies include a cap and will have circumstances and a few restrictions.
Take DCB Bank Suraksha FD for example. The financial institution has tied up with Aditya Birla Sun Life for the life insurance coverage coverage. It’s obtainable for these between 18 and 54 years. According to the financial institution’s web site, clients who’ve accomplished 55 years will not be allowed to open Suraksha FD.
The life insurance coverage is equal to the quantity held within the fastened deposit. If you have got ₹1 lakh within the FD, the insurance coverage cowl is ₹1 lakh. However, there is a cap of ₹50 lakh. If you maintain greater than this restrict, the duvet will nonetheless be ₹50 lakh.
The rate of interest is 6.75% on the Suraksha FD, which is for a three-year tenure. There is a restriction on the age and the tenure as there is a value hooked up to it.
ICICI Bank gives a free life insurance coverage cowl of ₹3 lakh. According to its web site, the insurance coverage coverage obtainable for one yr if the shopper opens an FD of ₹3 lakh or extra. The tenure of the FD needs to be over two years or extra. . It’s obtainable for purchasers within the age group of 18 to 50. The financial institution gives the group cowl in partnership with ICICI Prudential Life Insurance.
For each the banks, the life cowl is withdrawn in case of untimely withdrawal. In the case of joint accounts, the financial institution covers the first holder.
As these fastened deposits include circumstances 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.
Also, do not depend on life insurance coverage that comes free with monetary merchandise like FD or mutual funds. Buy a time period plan that gives a canopy of no less than 10 instances your annual wage. These extra cowl can solely additional increase the first life insurance coverage coverage that you’ve.
(Do you have got private finance queries? Send them to mintmoney@livemint.com and get them answered by business specialists)
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