Know the condition before opting for a fixed deposit with free life insurance

Some banks say that life insurance is free if you make a fixed deposit with them. Do you also want to make a fixed deposit to avail these offers? Is It Beneficial To Make A fixed deposit with free life insurance? Let’s find out.

There are certain conditions and limits to life insurance that you can get for free with a fixed deposit. For example, if you take the Suraksha FD offered by DCB Bank, the bank has entered into an agreement with Aditya Birla Zine Life for a life insurance policy.

The amount of fixed deposit .. The amount of life insurance will be covered. This means that if you make a fixed deposit of one lakh rupees, the life insurance coverage will be only 1 lakh rupees. If you have Rs. 50 lakhs, even if a fixed deposit of more than Rs. The bank will only offer coverage of Rs 50 lakh.

DCB Bank offers an interest rate of 6.75 per cent on Suraksha FDs with a maturity of three years. Certain limits apply to things like personal age and fixed deposit term.

ICICI Bank offers free life insurance coverage of Rs. 3 lakhs. According to the bank’s official website, it offers life insurance for a period of one year to customers who have opened a fixed deposit account of more than Rs 3 lakh. Fixed deposit for a period of more than two years.

Does not apply to advance withdrawals. In the case of joint accounts, the two banks apply insurance only to the first depositor. Must be between 18 and 50 years old. The bank offers group coverage in partnership with ICICI Prudential Life Insurance.

Remember:

Fixed deposits that come with such free life insurance have certain conditions and limitations so it is not advisable to make a fixed deposit for free insurance. Deposits should be made only for fixed deposits and not for life insurance.

Similarly, life insurance should be taken separately, not based on free insurance that comes with investing in FDs and mutual funds. Purchase a term plan that will cover at least 15 times your annual income. In addition, such covers can be selected.

Source: Profitsheets