Union Bank to offer LIC's group insurance to its fixed deposit holders

Mumbai: Union Bank of India, one of the leading public sector banks along with Life Insurance Corporation of India, will offer group insurance through the Life Insurance Corporation for its fixed deposit account holders. The scheme, 'Union Double Plus' will cover all account holders including staff account holders of the bank between the ages of 18 and 55 years.

Highlights of Union Double Plus:

  • The insurance cover is limited to the difference between the maturity value of the deposit and the accumulated amount in the account including interest at any policy anniversary subject to a ceiling of Rs 5 lakh. This means that even if the initial FD exceeds Rs 5 lakh, the cover will be limited to Rs 5 lakh.
  • Single premium for the entire term of the deposit (ranging from 93 months to 105 months) is charged at the time of entry into the scheme.
  • In case of death of the member during the term of cover, the difference between the targeted maturity value of deposit and the accumulated amount of fixed deposit as on the last policy anniversary would be paid to the nominee.
  • In case of premature closure of deposit the proportionate premium for the unexpired term of the deposit would be refunded.

Speaking on the occasion, T S Vijayan, chairman, LIC of India, said that the tie up with Union Bank of India was in line with LIC's continued focus on bancassurance.

According to M V Nair, CMD, Union Bank of India, "With the retail revolution sweeping across India and huge demand being perceived for various financial products and services from the customers, our objective has always been to cater to such demands with hassle-free, convenient products which will serve the interest of the customer. Against this backdrop, we have been tying up with LIC for different group insurance schemes for our different deposit accountholders. The launch of this new scheme is a step towards providing value added products and services to our customers."