• Fixed Deposit with Free Insurance Cover

    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.

    Details of Fixed Deposits with Insurance Cover Bundled

    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

    How it works

    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.

    Should you opt for Free Insurance Cover?

    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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