Usually, whenever a life insurance policy is taken, a certain premium has to be paid on time. The most important aspect of a life insurance policy is that the policyholder’s dependents get an economic strength in difficult times when it does not happen. But, do you know that there are some insurance covers that are not usually known to everyone. This insurance cover is either free or you have to pay a nominal amount for it. They are usually called add on covers. These small insurance covers are very helpful in case of untoward situation. In this era of Corona epidemic, we should know about this kind of policy. Let’s know about 5 such policies …
EPFO EDLI: Employee Insurance Cover
Whenever an employee enrolls in the Employees Provident Fund (EPF) in the organized sector, he also gets the facility of life cover i.e. a life insurance. All Subscriber Employees of Employees Provident Fund Organization (EPFO) deposits are covered under Deposit Linked Insurance Scheme 1976 (EDLI). In this, a nominal amount is paid as a premium by the employer, the company. Under this, the EPFO subscriber gets the sum assured life insurance cover of 2.5 lakh to 7 lakh rupees. Know that the maximum is only 7 lakh rupees. The EDLI scheme can be claimed on behalf of the nominee of the Member Employee by the sickness, accident or natural death of the Employee. There is a lump sum payment. The benefit of EDLI will now also be extended to the family of employees who have worked in more than one company within 12 months immediately before death.
Debit / Credit Card Cover
Almost every bank’s debit card gets an insurance cover to the account holder. There are different types of covers, including personal accident cover, purchase protection cover and permanent disablement. This cover is up to 10 lakh rupees. On the other hand, depending on the credit type of the customer, insurance cover is also available on the credit card keeping in mind the credit card limit and the service provider’s offer. There are usually four types of coverage on credit cards, including accident insurance, travel insurance, credit insurance and purchase insurance. Generally, credit card companies in India offer up to 40 lakh rupees of accident insurance. However, the coverage limit on credit cards of different banks is different. It is important to know that this insurance cover is available only when the credit card is active.
SIP Insurance Cover
Most investors investing in Mutual Funds through Systematic Investment Plan (SIP) will not know that many companies also get life insurance cover on their funds. Usually this product is called SIP plus insurance products. Each company provides this insurance cover with different name with its fund. Such as ICICI Prudential Mutual Fund’s ‘SIP Plus’, Aditya Birla Sun Life Mutual Fund’s Century SIP, PGIM India Mutual Fu’s Smart SIP and Nippan India’s ‘SIP Insure’ plan. AK Nigam, director of BPN Fincap, says that it is actually a bundled free life insurance plan, which is a kind of group insurance plan. It does not require any type of health checkup. This plan is usually for investors from 18 to 51 years of age who are eligible for SIP Plus Insurance Scheme. However, the age of coverage varies from company to company. On some funds, this coverage is up to the age of 60 years. There is a life insurance cover up to a maximum of Rs 50 lakhs.
Insurance cover on mobile recharge
Private sector telecom company Bharti Airtel is giving free life insurance to everyone on its mobile package. Actually, Airtel is offering free term life insurance with its two prepaid recharges. It has an insurance cover of Rs 4 lakh on a plan of Rs 279. For this, Airtel has tied up with HDFC Life; At the same time, there is a life insurance of 2 lakh on a prepaid recharge of Rs 179. Users get this cover through Indian Axis Life Insurance. This insurance will be automatically issued in the name of the SIM card holder. After recharging to take advantage of this, the customer has to enroll himself through SMS, Airtel Thanks App or Airtel’s Authorized Retail Store. This insurance cover is for people between 18 and 54 years of age.
Life insurance cover on bank account
All account holders get insurance cover on the bank account. With the introduction of Jan Dhan Yojana in 2014, two policies were offered to all bank account holders. In this, life cover is available under Prime Minister Jeevan Jyoti Insurance (PMJYB). For this, the account holder has to pay a premium of 330 rupees annually. Usually in late May or early June this amount gets auto debited from the account of the account holder. Under this, the nominee can claim Rs 2 lakh on death of the account holder. The account holder of this scheme is covered till the age of 55 years. At the same time, the amount of claim is tax free. Also, the premium amount is also tax free under Section 80C. Under this scheme, one has to contact the bank branch or the bank-linked insurance company for the claim.
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