Free life insurance for fixed deposit holders: You have to meet these conditions

If you open a fixed deposit (FD) with a bank, you may also get free life insurance. These insurance policies may have certain conditions and some restrictions.

DCB Bank Suraksha FD has tied up with Aditya Birla Sun Life for the life insurance policy. The policy is available for those between 18 and 54 years. Customers who have completed 55 years are not allowed to open Suraksha FD.

The life insurance is equivalent to the amount held in the fixed deposit. The insurance cover is Rs 1 lakh if you have Rs 1 lakh in the FD. The cover will still be Rs 50 lakh if you hold more than this limit. Though, there is a cap of Rs 50 lakh.

There is a restriction on the age and the tenure as there's a cost attached to it. The interest rate is 6.75 percent on the Suraksha FD, which is for a three year tenure.

The ICICI bank offers the group cover in partnership with ICICI Prudential Life Insurance. ICICI Bank provides a free life insurance cover of Rs 3 lakh. The insurance policy is available for one year if the customer opens an FD of Rs 3 lakh or more. The tenure of the FD should be over two years or more. . It's available for customers in the age group of 18 to 50.

For DCB Bank, as well as ICICI Bank, the life cover is withdrawn in case of premature withdrawal of the FD. The bank covers the primary holder in the case of joint accounts.

Source: Money Control