Paisawiki is a Part of Logo
*Please note that the quotes shown will be from our partners

10 Free Inbuilt Life Insurance Covers You Don’t Know About

The world is filled with uncertainties and unpredictable risk factors affecting individual lives. The risks are innumerable and can be fatal if you don’t have insurance coverage. What insurance cover does is secure the policyholders from any unfortunate events by recovering the finances for medical emergencies or casualties in the family.

What is Insurance Coverage?

Insurance coverage can be claimed by paying a small amount of money paid on a monthly or annual basis. This amount is called the premium. In the case of life insurance, the policyholders can then raise a claim to receive a total sum from the company after a policyholder faces untimely death.

When the policyholder pays the fee to the insurance company, they hypothetically transfer their risk to the company where the company safeguards the policyholder. The insurance cover is determined on multiple factors like age, medical expenses, medical tests, smoking habits, etc.

10 Free Inbuilt Life Insurance Covers

Here are the 10 free in-built life insurance covers:

  • Bank Deposits

    One of the best possible ways to apply for insurance coverage is Bank Deposits. Only a few people are aware of the Bank Deposits and Fixed Deposits where the policyholders are insured up to Rs. 1 lakh. They can also claim this coverage for free. The only disadvantage for bank deposits is that it is limited to aggregate deposits in particular banks.

    The fixed deposits include different types of banks such as co-operative banks, foreign banks in India, and regional banks, which are issued by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The types of deposits covered by the DICGC are recurring deposits, savings, current accounts, and fixed deposits.

    Under DICGC, each bank account holder is entitled to up to Rs.1 Lakh coverage, which includes principal amount and interest.

  • Home Appliances Cover

    Manufacturers of Home Appliances Cover include Refrigerators, Washing machines, and TV products. They offer insurance coverage to the buyers where a small amount of money or percentage is added to the cost of appliances. If there are any breakdowns in electronics or other mechanical products, home appliances cover proves beneficial to the buyers. These are commonly offered during the festival seasons when most people are not even aware of them.

    Many people get confused with this coverage with the warranty of applications, but that's not the case because it does not offer any warranty. It simply covers the damage against a loss or damage to the products of home appliances. The biggest advantage of home appliances is that it is free and the incited cost is added to the appliance's cost. Sometimes the dealers sell it as a free add-on to the buyers.

  • LPG Insurance Cover

    The LPG Insurance Cover has many benefits which are useful for individuals. It covers all the costs if there are any damages like leakage of gas or explosion or worst-case scenario - the death of any person due to the LPG cylinder. The LPG cylinder is issued by the government of Oil Marketing Companies like BPCL, HPCL, and Indian Oil. They cover the cost for the customers in case any damage occurs to the property.

    If any unfortunate event occurs, the individual can claim for settlements that are filed with the distributors, and the maximum coverage is up to 40 Lakh. Things you require when you claim the cover are as follows:

    • You need to maintain the payment receipts as they will demand the receipts at the time of claim.
    • The gas equipment should be of ISI Mark.
    • The LPG cover is not applicable if the dealer is not on the registered premises.
  • Zero Liability Cards from VISA and MasterCard

    VISA and MasterCard offer Zero Liability in both credit cards and debit cards. The important thing about Zero Liability Cards is that it offers a refund from banks if the customer is not at fault. Though both VISA and MasterCard offer Zero Liability Cards, it also depends on the banks and terms and conditions whether a person can avail of this facility.

    The policyholders will pay a premium to the bank when the insurance coverage is issued, but a major disadvantage is that many banks will not buy this insurance coverage. When a transaction is made, banks will ask for a required PIN and two-factor authentication, but this is not covered under this insurance coverage. The banks that avail of this insurance cover are:

    • ICICI Banks
    • HDFC Banks
    • Standard Chartered Banks and
    • Axis Banks
  • 3rd Party Liability Cover

    The 3rd Party Liability Cover is used when any passenger is travelling in a commercial vehicle and if there are any casualties or the person is injured. The individual can cover up to 10 Lakh for Commercial vehicles, Lorries, buses, trains, and other vehicles. This cover is essential for private vehicles as well and can also be found in air travel.

  • Employees Deposit Linked Insurance or EDLI

    This type of insurance cover applies to all the employees who are contributing to the employee provident fund but have not opted for group insurance. They can use the employee deposit linked insurance scheme. Recently the government of India has changed the scheme coverage maximum limit from 1.3 lakhs to 3.6 lakhs. The companies should subscribe to EDLI as it is a statutory liability. If the company is providing benefits from an alternative scheme, then they are free from EDLI.

  • Mobile Phone Cover

    Mobile Phone Covers is a great measure to all the smartphone companies where they offer group covers to the buyers, which is a beneficial factor to everyone. This cover helps to recover the costs for any damages that occurred, burglary or theft, and riots happening around. For instance, Nokia has partnered up with New India Assurance which covers the Nokia mobile handset for any accidental damages or thefts.

  • Train Journey

    While being on a train journey, it is always important for individuals to be careful with their valuable products. If there is a robbery, then the cost recovery will be pretty expensive and cannot be recovered easily. Under IRCTC, i.e., Indian Railway Catering and Tourism Corporation Ltd, the passengers can claim for any loss of goods or damage or theft of the baggage as a part of the insurance coverage.

  • RuPay Card

    RuPay Card is an Indian version of Visa and MasterCard, which can be used at different places such as ATMs, e-commerce websites, and also in merchant outlets. The card offers free insurance on sudden death and disability to individuals. This insurance covers the cost of up to Rs.2 lakhs. Many people are not aware of this type of insurance coverage which could be a major benefit to everyone.

  • Pradhan Mantri Jan Dhan Yojana

    The Honourable Prime Minister of India, Narendra Modi, launched this scheme in 2014. The insurance coverage is used for accidents which cover up to Rs. 1 lakh, and the life insurance coverage, which is up to Rs. 30,000, is provided for free of cost along with a Zero Balance Account.

Final Verdict!

These are various life insurance plans that are some of the free inbuilt insurance covers. It provides coverage to the individuals in case of any damage, loss, theft, or burglary happening around. The individuals need to acknowledge this free inbuilt insurance coverage that provides financial stability and protects the individual from any damage occurring.

Although most people are not aware of all the schemes and facilities they are offering, it is essential to avail the full benefits of life insurance plans.

Disclaimer: Paisawiki does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

You May Also Want to Know About
Best Term Insurance Plans in India
Best Term Insurance Plans in India 2021 With the growing uncertainties of life, it is very import...
Life Insurance Benefits
Life Insurance Benefits What is life insurance? Life insurance is a financial contract between t...
Types of Death Covered and Not Covered by Term Insurance
Types of Death Covered and Not Covered by Term Insurance With so many different kinds of term ins...
Types of Life Insurance
Types of Life Insurance Life insurance is a legal contract between the policyholder and the insur...
Term Insurance Benefits
Term Insurance Benefits A person always wants to secure the future of the family in any circumsta...