Federal Bank Unveils New Savings Product With Added Insurance Cover For People Above 55 Years

Federal Bank has announced a new savings product, ‘Esteem Savings Account’ which comes bundled with a complimentary insurance cover. Curated for customers aged 55 and above, this savings account introduces an innovative model that blends financial stability with a focus on health and wellness. However, it is important to understand such added benefits and their limitations should you opt for one.

Before breaking down the insurance cover, let’s look at the features and benefits of Esteem Savings Account.

Airport Lounge Access: Customers will be eligible for two complimentary airport lounge access per quarter.

Debit Card Offers: The account will offer exclusive discounts on health, utilities, elder care services, among others.

Special Family Benefits: Esteem accountholders will get one complimentary zero-balance account for their spouse and two zero-balance kids accounts for their grandchildren.

Nil Banking Charges: There will be nil or no charges on commonly used 10 banking services, such as debit card issuance, debit card AMC, email alerts, SMS alerts, NEFT, RTGS, demand draft, duplicate passbook, duplicate statements, and balance and interest certificates.

Locker Rent And Demat AMC Concessions: Customers will get a 25 per cent discount on locker rent. The AMC will be waived for 1st year of demat account opening.

How To Open This Account?

To open an esteem account, customers will have to visit the nearest branch along with identity and address proof, such as a Passport, Aadhaar or Voter ID. PAN cards can also be used but only for identity verification. Two copies of a recent passport-size photograph will also be required.

As for the eligibility, any resident who is above 55 years of age can open the Esteem Savings Account.

Insurance Cover Breakdown

The complimentary insurance coverage includes two primary components, namely, hospital cash facility, and annual health check-ups and doctor on-call.

Hospital Cash Facility: This service is aimed at providing financial relief for hospital stays due to accidents or illnesses. Claims are contingent upon maintaining specific account balances to ensure that only active and financially-engaged customers benefit from the policy.

Annual Health Check-Ups And Doctor on Call: This cover offers access to medical consultations at no additional costs, which can be beneficial for common concerns song the elderly

Exclusions In Insurance Cover

While the insurance covers offer a significant value, it is important to understand the exclusions.

1] Pre-existing conditions such as cardiovascular (heart-related) diseases, cancer, and psychiatric disorders are not covered in this policy.

2] In order to qualify for the complimentary insurance coverage, account holders must maintain: - A monthly average balance of Rs 50,000 or - A combination of Rs 25,000 in savings and Rs 10 lakh in terms of deposits for three months.

3] Additionally, at least one transaction using the esteem debit card (POS, ATM, or e-commerce must be conducted within 90 days of filing a claim.

4] The insurance coverage for police and defence personnel’s Esteem Savings Bank accounts are on an off-duty cover basis only. Any claim arising because of on-duty accidents/incidents will not be covered under the insurance coverage of this account.

These exclusions, while standard in some insurance policies, may render health coverage less useful for seniors with chronic or pre-existing conditions. As such, prospective accountholders should carefully assess whether the included benefits align with their personal profiles and financial goals, and if the insurance cover is the main draw towards this savings account.