Some banks in India are offering free insurance cover to their customers on opening a fixed deposit (FD) account. In case, you wish to open an FD account you can check whether an insurance cover is being offered by the lender. You can then choose whether you wish to avail a free insurance cover on opening an FD account.
Currently, HFDC Bank, ICICI Bank, and DCB Bank are the three lenders in India who offer insurance cover to their customers looking to open a fixed deposit account.
|HDFC Bank||ICICI Bank||DCB Bank|
|Name of the FD scheme||SureCover FD||FD Life||Suraksha FD|
|Minimum and maximum tenure||1 year – 10 years||2 years and above||3 years|
|Minimum and maximum deposit amount||Rs.2 lakh – Rs.10 lakh||Rs.3 lakh and above||Rs.10,000 – Rs.50 lakh|
|Rate of interest||Same as interest rates for regular fixed deposits|
|Eligible groups||Primary fixed deposit account holders|
|Age of eligibility||18 years – 50 years||18 years – 50 years||18 years – 55 years|
|Insurance cover period||1 year||1 year||3 years|
|Cover amount||Up to Rs.10 lakh||Rs.3 lakh||Up to Rs.50 lakh|
|Insurance Company providing insurance||HDFC Life Insurance||ICICI Prudential Life Insurance||Aditya Birla Sun Life Insurance|
You can avail an insurance cover on your fixed deposit scheme where in case of your untimely death, the cover amount will be paid to the nominee. The cover period for HDFC Bank and ICICI Bank is for only one year, while for DCB, the cover period is 3 years. In case of DCB Bank, on making any premature withdrawal, the insurance cover will cease to exist.
Depending on your financial requirements and long-term plans you can opt for free insurance cover on opening an FD account. However, it is highly recommended you do not mix your investment and savings goals with your insurance goals and instead keep them separate.
It is always recommended that you opt for an insurance plan which covers you for a longer period of time. Ideally, it should cover you for at least 20-40 years or till the time of your retirement.
Hence, it is recommended that if you wish to protect the future of your loved ones, you opt for a standalone insurance plan while continuing to invest in fixed deposit schemes separately.
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