Life Insurance 171 views May 17, 2021

Fixed Deposit is one of the preferred investment tools among customers to grow their money over a period. Some banks also offer free-of-cost life insurance along with a fixed deposit. It means you don’t need to pay the premium as one has to do in a typical life insurance plan, subject to meeting certain conditions. If you are looking to get the dual benefit of assured returns along with a life cover, these fixed deposit products can be perfect for you!

The life insurance cover in these products will be equal to your fixed deposit amount. So, if a policyholder dies within the fixed deposit tenure, the company will provide death benefits to the nominee. If an individual withdraws (partially or fully) the deposit amount before the fixed tenure, life insurance cover will be deactivated with immediate effect.

On this page, we will talk about the features and benefits of the several fixed deposit products that come with the life insurance cover. Understanding them will help you opt for a suitable plan. So, let’s start right away!

Banks That Offer Fixed Deposit with Life Insurance Cover

Several banks provide fixed deposits with free life insurance cover, including ICICI Bank, DCB Bank and HDFC Bank. These products are ICICI FD Life, HDFC Bank SureCover FD and DCB Suraksha Fixed Deposit.

We will be discussing the features and benefits of all these plans to help you understand them better. We are starting with ICICI FD Life.

Check Out the Key Features of ICICI FD Life

ICICI Bank FD Life provides individuals dual benefits of guaranteed returns along with the life cover. Existing customers of ICICI Bank can open the FD Life by logging in to the Internet Banking. Let’s look at its key features mentioned below.

  1. The life cover amount will be INR 3 lakh for one year (irrespective of the fixed deposit amount), and the policy will be issued to customers after the opening of the fixed deposit.
  2. The fixed deposit amount should be INR 3 lakh and above for a minimum tenure of 2 years to get the life insurance cover.
  3. The interest rate on FD Life will be the same as the other standard fixed deposit plans of ICICI Bank.
  4. An individual should be in the age group of 18 to 50 years to be eligible for this plan.
  5. All the eligible customers would need to provide a declaration of good health. If he/she is unable to do so, the bank will not provide life cover.
  6. The policy will start from the date of opening of the fixed deposit.
  7. The free life insurance cover will be withdrawn if an individual decides to withdraw (partial or premature) the deposit amount.

Highlights of HDFC Bank SureCover FD

SureCover FD from the HDFC Bank is also a unique product that gives individuals a combo of fixed deposit and life insurance benefits. With this product, you can get life insurance coverage equal to the fixed deposit principal amount for the first year. If you are looking to protect your family’s future, this can be a suitable option.

We are showing its features below so that you can get a clear idea about the same.

  1. The minimum fixed deposit amount stands at INR 2 lakh, while it can go up to INR 10 lakh.
  2. HDFC Bank’s fixed deposit tenure can be as low as one year and go up to 10 years.
  3. The interest on SureCover fixed deposit product will be the same as any regular HDFC Bank FD.
  4. Under this product, the life insurance cover will be valid for one year only. During this year, you don’t have to pay the premium. However, individuals can renew the plan by paying the premium amount for the second year.
  5. An individual should be in between 18 to 50 years to apply for this plan.
  6. Customers should be in good health to be eligible for SureCover FD.
  7. Both HDFC Bank and Non-HDFC Bank customers can apply for this plan.

Let’s Talk About the DCB Suraksha Fixed Deposit Features

DCB Bank provides Suraksha FD with which customers can get life insurance cover up to INR 50 lakh across all DCB Suraksha fixed deposits opened in the name of the primary applicant. DCB Bank provides this life cover in partnership with the Aditya Birla Sun Life Insurance Company Ltd. Have a look at its key features mentioned below.

  1. The minimum deposit amount stands at INR 10,000 for a DCB Suraksha FD.
  2. Tenure for the Suraksha fixed deposit can only be up to 36 months.
  3. The life insurance cover will be equal to the fixed deposit amount (with a limit of INR 50 lakh). Suppose, your FD amount is INR 5 lakh, the insurance cover will be INR 5 lakh.
  4. The insurance cover starts from 18 years of age until the account holder attains the age of 55 years. Individuals who have completed the age of 55 years or more cannot open this fixed deposit.
  5. DCB Bank also allows premature withdrawal of the fixed deposit in case of an emergency. However, your life cover will cease to exist on the date of premature closure. To avoid such a situation, you can opt for the overdraft or loan facility.
  6. If the fixed deposit is in the name of more than one individual, only the primary account holder will get the free life insurance cover.
  7. You will need to provide PAN, nomination and email ID to open DCB Suraksha Fixed Deposit.

Bottomline

Your fixed deposit amount i.e. life cover amount may be insufficient for your dependents in case of your unfortunate death. So, you should not choose these products only to get life insurance coverage benefits. Opt for them only as an additional cover to protect your family’s financial future.

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