ICICI Bank has been expanding its retail banking products and included an "FD Xtra" segment where customers can get additional financial benefits on investing in a fixed deposit with the bank. There are options like 'FD Invest' where the customer can use the interest earned on FD to invest in monthly Systematic Investment Plans (SIPs) of a mutual fund.

Its latest addition to this segment is "FD Health." The Fixed Deposit scheme comes with critical illness cover apart from the benefits of deposit security and interest income.

Features

• The critical illness cover will be provided on Cumulative FDs of a minimum period of 2 years.
• These cumulative Fds have to be opened with amounts from Rs 2 lakh and above to less than Rs 3 lakh.
• The critical illness cover is worth Rs 1 lakh from ICICI Lombard General Insurance Company.
• The critical illness cover policy will be issued to customers after the opening of the FD.
• Life cover policy will become effective from the FD opening date.
• The critical illness cover will be valid for a period of one year, with no additional charges. It can be renewed at a cost in the following years.
• Customers will have to provide a declaration of good health to get the illness cover.
• The FD account can be held jointly but the critical illness cover will only be provided to the primary account holder.
• It covers 33 critical illnesses include lung disease, kidney failure, benign brain tumour, Parkinson's disease and some specified severities of cancer.
• Premature withdrawal will be as per terms and conditions agreed to. On premature or partial withdrawal, critical illness cover lapses.

Eligibility

Only Indian residents between the age of 18 to 50 years are eligible for the health cover.

Limitations

Critical illness where the symptoms indicative of such illness have first manifested or first occurred prior to the Risk Inception Date or arisen within first 90 days of commencement of the period of cover, will not be included. Read the complete terms and conditions on ICICI Bank's official website.

Rate of Interest

Regular interest is applicable on the amount deposit and the tenure as per rates set by ICICI Bank for its customers.

How to apply for FD Health?

Visit the nearest ICICI Bank branch to apply for one.

Should you opt for ICICI Bank's FD Health?

This is a one-of-a-kind scheme but may not serve as the sole product to protect oneself against unexpected diseases. Health Insurance is a necessity in times of high medical costs, especially around critical diseases.

FD Health comes with a health cover without cost for a short period of 1 year, however, the customer is not at a loss as this scheme will help him/her earn interest on FD and get a health cover as well.

As for the amount, it isn't big when it comes to the treatment of critical illnesses. However, it can act as an add on to an existing health cover that you hold.

This cover is only for those who are in good health at the time of opening the FD. Hence, those who really need a critical illness cover could go for their other FD products like FD Invest and buy a dedicated critical illness cover with a larger cover instead.