ICICI announced the launch of a new fixed deposit ‘FD health’ on Monday. The FD comes with the double benefit of investment growth through FD along with critical illness coverage. The protection plan comes with insurance coverage of Rs. 1 lakh for investments made above Rs. 2 lakh.
Speaking on the launch of this new plan, Pranav Mishra, the head of retail liabilities says, “This offering is a first in the industry and provides the advantage of safety and growth of a fixed deposit along with protection of critical illness cover which will provide financial help if needed. It comes with a complimentary insurance covering 33 critical illnesses for a period of one year for sum insured of Rs 1 lakh to the FD holder”.
This scheme is mainly launched to provide added benefits to customers. Mostly in times of medical emergency, customers choose to liquidate their FD investments to pay their medical bills. ICICI FD health thus covers 33 types of critical illness and allows the beneficiary to raise an insurance claim if diagnosed with a critical illness within the policy tenure. This saves their FD investments from premature withdrawals.
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Under the FD health, you will get critical illness cover of Rs 1 lakh that covers 33 types of critical diseases. During your policy tenure if you are diagnosed with any of the listed diseases then you will be eligible to raise an insurance claim without liquidating your FD.
Sanjeev Mantri, the executive director of ICICI Lombard General Insurance states that with this product a customer can enjoy the dual benefit. With FD health an individual can stay covered against critical illnesses and can grow money through FD investment.
Sanjeev Mantri says, “In today’s times, while customers have multiple investment options, fixed deposits continue to be an attractive proposition. ICICI Bank has always been at the forefront in introducing innovative solutions for its customers. The Bank’s latest fixed deposit offering, ‘FD Health’ offers a unique blend of assured returns from an FD coupled with health protection against critical illnesses. With the emergence of lifestyle diseases amid rising medical treatment costs, a health protection cover is no longer an option but a necessity. With the unique dual proposition offered by ‘FD Health’, one can stay covered against medical expenses, without having to break one’s savings.”
The list of critical illnesses under FD health comprises of specified severities related to lung cancer, severe kidney problems, liver ailments and mild brain tumour, Alzheimer and Parkinson’s.
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To avail the dual benefit of health cover along with FD investment you must fulfil the following eligibility criteria:
An insurance cover along with an attractive interest rate is a great way to grow your money along with getting additional insurance benefits. But you must not focus on only one aspect while investing.
The insurance cover of Rs. 1 lakh is very low considering the types of critical illnesses covered under the policy. Therefore for coverage of critical ailments, you must not solely depend on this insurance cover. To ensure better coverage you must have a health insurance cover that covers your basic health problems, looks after your hospitalization bills and pays for your treatment in case you are diagnosed with a critical illness.
Additionally, this insurance cover is only valid for one year for free. To avail coverage for the second year, you have to renew the insurance and pay premiums on it.
But since this cover comes as an additional benefit on FD investment, so there is no harm in availing coverage without any additional cost. You may choose to invest in this FD based on the prevalent interest rate on the FD. ICICI bank is paying a 7% interest for an amount below Rs. 2 crores for tenure of 2 years. The interest rate for deposits above 2 years is 6.9%.
If you are making an investment based on the competitive FD interest rate and getting an added feature then it is a profitable investment. But don’t go for the investment just to get a health cover. You must focus on making this investment only if it fulfils your financial goals and asset allocation requirements.
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