Anyone in the age bracket of 18-50 years, gets this complimentary insurance cover for a year on 33 critical illnesses.
ICICI Bank has launched a fixed deposit scheme called FD Health, that comes with an in-built critical insurance policy. The insurance coverage is free for the first year i.e. no additional premium needs to be paid by the deposit holder. If required, the policy may be renewed by the deposit holder from the second year by paying the premium. FD Health, a Fixed Deposit (FD) will essentially offer the dual benefit of savings via FD and protection through critical illness coverage.
The new FD scheme from ICICI bank offers a complimentary critical illness cover of Rs. 1 lakh from ICICI Lombard General Insurance Company on opening an FD of Rs. 2 lakh to Rs. 3 lakh for a tenure of at least two years. The critical illness cover will be available on Cumulative FDs opened for a period of a minimum of 2 years.
It can be opened by resident individuals i.e. FD account holder where the mode of holding is either single or joint. The FD Health – Critical illness Cover will be provided to only the primary holder of the FD account. Anyone in the age bracket of 18-50 years, gets this complimentary insurance cover for a year on 33 critical illnesses. The list of critical illnesses under the policy includes specified severities related to cancer, lung disease, kidney failure, liver disease and benign brain tumor, Alzheimer’s disease and Parkinson’s disease.
Critical Illness insurance of ICICI will be issued to customers after the opening of FD. At the time of filling up the application form, one needs to provide a declaration of good health. If the declaration states that the individual is not in good health, the Critical Illness Cover shall not be provided.
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The ICICI Bank FD rate on this FD scheme will be the same as that on other FDs of the same tenure of the bank. Further, the partial and premature withdrawal will be permitted. In case of partial and premature withdrawal of deposit, the free critical illness cover offered will get terminated from the date of partial/premature withdrawal. In case of partial withdrawal where the FD Principal continues to be above the specified amount, the FD would continue to enjoy the free critical illness cover.
A critical illness insurance policy is different from a Mediclaim or the individual health insurance policy. Unlike, Mediclaim where the insurance company reimburses the hospital bills, in a critical illness insurance policy, upon the diagnosis of the specified illness, the entire sum insured is paid by the insurer to the policyholder, subject to certain conditions.
Evaluate the interest rate on the FD after comparing them with other banks and not just base your decision because of the free insurance cover. The insurance coverage is low in the scheme and may not be adequate as medical costs are rising. Ideally, one should have a Mediclaim policy for an adequate sum insured and then add a critical illness policy especially at age around 40.