Free Life Insurance Plan: Whenever we take any type of insurance (life, medical, travel or other) policy, we have to pay a fixed premium at a specified time. The most important aspect of a life insurance policy is that it provides financial support to the policyholder’s family in case of any mishap. But did you know that some insurance coverages are available for free and generally not everyone knows about them? We also have some cards. Generally these are called add on covers. These small insurance plans are very helpful in unfavorable times.
EDLI cover up to 7 lakhs
An employee enrolled in the Employees Provident Fund (EPF) gets the facility of life insurance i.e. life insurance. All subscribers of Employees’ Provident Fund Organization (EPFO) are covered under Employees’ Deposit Linked Insurance Scheme 1976 (EDLI). In this, a small amount is paid as premium on behalf of the employer i.e. the company. Under this, EPFO subscribers get life insurance benefits ranging from Rs 2.5 lakh to Rs 7 lakh. Maximum cover is Rs 7 lakh only.
EDLI scheme claim can be made on behalf of member employee’s nominee in case of illness, accident or natural death of employee. This includes the total amount. Now the benefit of EDLI will also be given to the family of employees who have worked in more than one company within 12 months immediately before their death.
Insurance on debit/credit card
Almost all public or private sector banks offer insurance cover to account holders on their debit cards. It has various types of covers including Personal Accident Insurance, Purchase Protection Insurance and Permanent Disability Insurance. This insurance is up to Rs.10 lakh. On the other hand, coverage is also available on credit cards depending on the customer’s credit card type and the credit card limit offered by the service provider. Credit cards generally have 4 types of coverage, including accident insurance, travel insurance, credit insurance, and purchase insurance. Credit cards of different banks have different coverage limits. It is important to know that this cover is available only when the credit card is active.
Insurance even in SIP
You may not believe it but many fund houses also offer insurance on SIP in their scheme. Life insurance is also available in the funds of many companies. Generally this product is known as SIP Plus insurance product. Each company offers this insurance coverage with its funds under different names. For example, ICICI Prudential Mutual Fund’s ‘SIP Plus’, Aditya Birla Sun Life Mutual Fund’s Century SIP, PGIM India Mutual Fund’s Smart SIP and Nippon India’s ‘SIP Insure’ scheme.
In fact, it is a bundled free life insurance plan, which is a type of group insurance plan. Investors between the age group of 18 to 51 years are eligible for the SIP Plus Insurance plan. However, the coverage age varies from company to company. In some funds, this coverage is up to age 60. Life insurance is up to a maximum of Rs 50 lakhs.