CHENNAI: When one thinks of life insurance policies, the mind is quick to jump to the big guns such as those from LIC, or other standardised, comprehensive policies from major life insurance companies. But a large variety of products nowadays come with add-on insurance covers that may offer substantial payouts. So, here are a few products that come with add-on insurance covers.
Jan Dhan accounts
Among the most widespread add-on insurance covers, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) policy is being offered as an add-on for Jan Dhan account-holders, who have been offered the option of subscribing for the policy that can be renewed up to 55 years of age.
The annual premium is Rs 330 and account holders who are subscribers will have the premium deducted from their balances every year. Survivors can claim an amount of Rs 2 lakh. However, if a policyholder has multiple such accounts, only one claim will be considered valid.
Mobile connection add-ons
The intensely competitive telecom services sector has, for a while now, been providing subscribers with a wide variety of bundled offerings, some of which include insurance covers through partnerships with insurance firms. Bharti Airtel, for instance, has offered bundled life insurance to those who buy its mobile plans, with payouts ranging from Rs 2-4 lakh. One partner was Bharti AXA Life insurance, whose policy it offered with a Rs 179 pre-paid package. Another policy from HDFC Life was offered with its Rs 279 plan both covering those between 18-54 years of age.
Mutual fund accounts
Similar to those add-on packages offered by telecom companies, a large number of mutual funds have also often bundled insurance products. Such offerings are quite common with SIP schemes.
Employee Provident Fund
Subscribers to the Employees’ Provident Fund (EPF) have a small amount of the employers’ contribution that is diverted into a premium payment for the Employee Deposit-Linked Insurance (EDLI) Scheme. This premium is for a life insurance policy with a sum assured of Rs 2.5-7 lakh, but it is only paid if the person who expired was in service and contributing.