Updated 28 May 2025 at 15:55 IST
Union Bank FD-Linked Health Insurance Scheme: Features, Benefits & Key Details
Union Bank of India's "Union Wellness Deposit," an innovative FD scheme offering attractive interest rates along with complimentary health insurance coverage and lifestyle benefits. Learn about its features, eligibility, and how it combines wealth creation with health protection.
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Union Bank introduces a fixed deposit-linked health insurance scheme, offering dual financial protection to customers. | Image:
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There is one innovative product in the market, that is Union Bank’s FD linked health insurance called as Union Wellness Deposit to attract high-value fixed depositors. The scheme bundles a health insurance policy with a fixed deposit (FD), offering dual benefits that not only assures you returns but also provides much needed medical coverage.
What Is On Offer?
The offer is open to resident individuals who invest between Rs 10 lakh and Rs 3 crore for a fixed tenure of 375 days. The FD fetches 6.75 per cent interest (7.25% for senior citizens), slightly better than the rates offered by private giants like HDFC Bank (6.60 per cent) and ICICI Bank (6.70 per cent).
Free Insurance—But With Strings Attached
The scheme includes a complimentary super top-up health policy from Manipal Cigna with a Rs 5 lakh sum insured. However, this coverage kicks in only after the depositor has already spent Rs 5 lakh either from an existing policy or out-of-pocket. Also, the insurance is a one-time benefit and doesn’t get renewed with FD extensions. The policy covers only the primary account holder and comes with a 30-day waiting period.
Who Should Consider This?
According to financial experts, this scheme may appeal to senior citizens who already have a base health policy. The top-up could act as a cushion for unexpected hospital bills above their current policy limit.
The Caveats
The biggest barrier is the minimum deposit of Rs 10 lakh makes it inaccessible for small investors. There is no insurance continuity as the coverage ends after 375 days with no renewal option. According to experts, this should not be treated as a replacement for comprehensive health insurance.
Verdict
According to experts and personal finance experts, while the scheme does offer a free insurance perk and slightly higher interest rates, it's not a one-size-fits-all solution. Experts cautioned that don’t get carried away by ‘free insurance’ and the feature should not cloud your judgment. This is a niche offering best suited for a specific financial profile not a mainstream wealth-building or healthcare solution.
Published 28 May 2025 at 15:55 IST