Union Bank of India Wellness Deposit Scheme: In an innovative move designed to attract high-value depositors while offering health protection, Union Bank of India has introduced the Union Wellness Deposit Scheme. This scheme uniquely blends the traditional safety of fixed deposits (FDs) with the added advantage of a complimentary Rs 5 lakh super top-up health insurance policy. Partnering with Manipal Cigna Health Insurance, Union Bank aims to provide its customers with financial security not just in terms of returns, but also in the face of unexpected medical expenses.
Amid declining deposit interest rates following the Reserve Bank of India’s 50 basis point cut this year, customers have been on the lookout for FDs that offer more than just steady returns. The Union Wellness Deposit Scheme answers this call by offering an attractive 6.75% interest rate on deposits for a fixed tenure of 375 days, alongside free health insurance coverage. This dual-benefit scheme is being marketed as a win-win for customers looking to secure their finances while gaining peace of mind regarding healthcare emergencies.
With a minimum deposit of Rs 10 lakh and a maximum of Rs 3 crore per account, this scheme is clearly targeted at affluent individuals or businesses looking to make substantial short-term deposits. The complimentary insurance coverage acts as a significant incentive in an environment where standalone health policies can be expensive and FDs offer diminishing returns. However, the critical question remains: Does the value of the insurance justify parking a substantial sum for just over a year? Let’s delve deeper.
Who Can Apply?
The Union Wellness Deposit Scheme is available to:
- Resident individuals (single or joint account holders)
- Hindu Undivided Families (HUFs)
- Sole proprietorships, partnerships, and corporate entities
The offer is especially appealing to those who already have surplus funds and are looking for short-term investment avenues with added benefits.
Insurance Coverage and Premium
- Insurer: Manipal Cigna Health Insurance
- Sum Insured: Rs 5 lakh (super top-up cover)
- Premium Cost: Borne entirely by Union Bank of India
- Policy Tenure: Aligned with the FD tenure of 375 days
The policy provides coverage over and above any base health insurance that the depositor may already hold, making it a valuable supplementary policy for high healthcare costs.
Also read: The Hidden Traps in Health Insurance: A Personal Wake-Up Call
How to Use the Insurance Policy
Once the FD is opened:
- The customer receives an insurance policy certificate.
- The insurance can be activated upon submission of KYC and medical documents if required.
- Claims can be filed via the Manipal Cigna portal or at the bank’s partnered branches.
Note: The super top-up feature means the policy becomes active only after the threshold limit of your base insurance is crossed.
Benefits of the Scheme
- Dual Benefit: Earn assured FD returns plus health insurance coverage.
- No Premium Hassles: The bank pays the insurance premium.
- High Returns: Competitive 6.75% interest for 375 days.
- Risk Coverage: Supplement your existing health plan with additional Rs 5 lakh coverage.
How to Apply
Customers can apply through:
- Union Bank branches: Visit your nearest branch to open the FD and complete the insurance formalities.
- Online banking (if enabled for this scheme): Log in and follow the FD booking process under special schemes.
- Customer support: Contact the Union Bank helpline for guidance. Union Bank of India Official Site
Important Dates
- Scheme Launch: Ongoing
- Offer Validity: Subject to availability and bank’s discretion (limited-period offer)
- FD Tenure: 375 days
Disclaimer
The information provided in this article is for general awareness and marketing purposes only. Customers are advised to read the terms and conditions carefully before investing. The bank reserves the right to change or withdraw the scheme at any time without prior notice. Insurance is subject to underwriting guidelines of Manipal Cigna Health Insurance.
Union Bank of India Wellness Deposit Scheme Conclusion
The Union Wellness Deposit Scheme is a commendable step towards offering more value to depositors, especially in a low-interest environment. By bundling a health insurance policy with a fixed deposit, Union Bank of India is catering to health-conscious investors who value financial security on multiple fronts.
This scheme particularly benefits those with high disposable income or businesses with idle funds looking to park their money safely while gaining additional health coverage. The Rs 5 lakh insurance cover can provide much-needed financial relief in case of a medical emergency, making the offer more than just a marketing gimmick.
However, investors should carefully evaluate their liquidity needs before locking Rs 10 lakh or more for over a year. Also, they must review the policy details, especially the conditions tied to the super top-up clause, to ensure it meets their health coverage expectations.
Overall, this is an innovative, value-added product from Union Bank of India that aligns with the financial and health priorities of today’s depositors. If you meet the eligibility and have the required capital, it might be worth considering.
Union Bank of India Wellness Deposit Scheme FAQs
1. What is the minimum amount required for the Union Wellness Deposit Scheme?
To avail of the scheme and its benefits, you must deposit a minimum of Rs 10 lakh in a single account.
2. Can I withdraw the FD before 375 days?
Yes, premature withdrawal is allowed, but it may affect your eligibility for the insurance benefits and reduce the applicable interest rate.
3. Is the health insurance policy transferable?
No, the insurance policy is linked specifically to the depositor and is non-transferable.
4. What happens if I already have a base health insurance policy?
The super top-up policy under this scheme activates once your existing health policy’s threshold limit is crossed, offering extended coverage.
5. Is there a medical check-up required to avail the insurance cover?
Usually, for customers below a certain age and with no declared pre-existing conditions, medical tests may not be required. However, the final decision rests with Manipal Cigna’s underwriting guidelines.
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