Do you know that you can simply open a bank account and get life insurance free of charge?
Banks are offering diverse array of products to their customers. A few of them introduce insurance that comes free with opening an account.
But what’s the catch? What is the deal all about? This article is going to discuss the best savings and other bank accounts that offer their depositors insurance.
Table of Contents
What is bank account + free insurance?
Bank accounts with free insurance work just like a regular account. They can be a basic savings account, checking account, or time deposit. They may include a debit card, passbook, checkbook, a mix of any or all of them. Or they may be activated as a plain virtual account where transactions like viewing the balance, adding funds, and getting one’s money back are done online without the need to visit a physical branch or speak to a representative of the bank.
And on top of that, depositors can avail of the free insurance. It is given inclusive of the account and in most cases, becomes effective immediately upon account opening. Such a feature gives it an added advantage over other similar banking products, particularly that the insurance is provided to the depositors at no cost.
Among the products that are reviewed in this article, coverages can vary widely.
- life insurance
- accidental death and injury
- murder, assault
- burial assistance
- permanent disability and dismemberment
- card insurance that provides protection against the loss of card, unauthorized charges, theft/robbery
One other advantage is that free insurance may be issued without the need for medical check-up, so they are easier to get insured. However, some bank accounts have terms and conditions regarding insurability. Not all depositors can get insured, or in some cases open the bank account. These can be the result of the declarations made on the health statements, age of the insured person, terms and conditions of the group policy, etc.
How much is the insurance coverage?
Again, there is a wide variety of the amount of potential insurance benefit. The level of benefit that can be expected out from the plan may depend on several factors, including the following:
- average daily balance (ADB) or the amount of the time deposit (whichever the case maybe). Generally, the average daily balance may be computed based on the past few months before a claimm is filed.
- the age of the insured. Older clients may be entitled to less face value compared to those of younger age.
- the age of the account. Newer accounts, especially those that are mere months old, can be subject to less benefit.
What is the catch? Is insurance really free?
Indeed, getting a free insurance is a beneficial feature that can go with having a bank account. But what is the real deal?
First, some of these bank accounts are targeted towards specific markets. A few requires that the depositor is a Filipino living or working abroad, or their relative or a member of their family. Documentary requirements may include papers and certifications issued by government agencies catering towards OFWs and migrants.
Second, several of them have higher monetary requirements such as balance for account opening, ADB, and to earn interest. Failure to keep the specific level of deposit may mean that the insurance cover gets terminated and therefore would not be enforced. Thus, they may appeal to high net-worth individuals.
Third, for time deposit there might be a high placement requirement. The amount required by the bank may start in tens of thousand to hundreds of thousand pesos. Not only that, the maturity (that is, how long the deposit remains with the bank to earn full interest payments and before it can be withdrawn without penalty) may stretch for years.
Fourth, insurance may usually be a group policy with benefits that are designed as one size fits all. Thus, they may not appeal to or suitable for people wanting to get a more customized coverage.
Fifth, benefit may be different for different depositors. This is so especially when benefits vary according to certain age brackets.
Sixth, being able to enroll dependents, such a spouse, child, sibling or parent, is good because the benefits can be extended to them. However, most of the free insurance reviewed in this article, if not all, do not allow for enrollment of dependents.
Seventh, issue age can be a factor. Very young or very old individuals may not be eligible to open an account and take advantage of the free insurance.
Lastly, there is a cap on benefit. A limit is set for the maximum cash benefit that one can get. It can be an issue for those looking for higher cover.
Is a bank account with free insurance for you?
Grabbing a free insurance as part of an account with the bank may sound interesting. But the question remains, is it a right fit for you?
Here are a few pointers to help you decide.
- Check if the account is really something that you need. After all, what you’re getting first and foremost is the bank account. Does it address your specific banking needs? Do you really need an extra deposit account, another time deposit, one other account for checkbook?
- See if getting a separate insurance may be the more appropriate strategy for you or your family. Weigh the pros and cons. Or maybe you are looking for additional coverage. If so, how well does the bank account’s insurance policy complement your existing policies, if you have any? Be mindful too about being under- or over-insured.
- Examine if you fulfill the requirements set by the account and by the bank. These requirements include both documentary (such as identification cards) and monetary ones (such as initial deposit).
- Review the policy, terms, and conditions. Nearly all information are available online. In this way, you get to understand what’s required of you, the extent and limits of the insurance coverage, the causes and circumstances where the coverage is forfeited or unenforced, etc. Consider too about paying a visit to the bank and inquiring at the teller or customer service.
Bank accounts with free insurance
BDO Kabayan Savings Account
Banco de Oro’s (BDO) Kabayan Savings Account is designed for overseas Filipinos. It can receive remittances from abroad intended to be used for their families and loved ones back home. It comes with a passbook and an ATM debit card.
No maintaining balance is required when the account has received remittance at least once within the period of 2 years. Failure to do so will automatically convert it into a regular savings account with required ₱2,000 maintaining balance. Additionally, the depositor may be able to participte in BDO Rewards programs.
Basic requirements are:
- ₱100 for Philippine peso account or $100 for US Dollar account
- 1 valid identification card
- Seafarers working for companies accredited by POEA can open a US Dollar account. Minimum initial deposit is $10 and required is the seaman’s book or Marina ID. It can then be used as a deposit account where allotment is allocated directly.
As long as the account is named under the OFW or their family (spouse, parent, sibling, or child), depositors who are between 18 and 65 years old can apply for free life and accident insurance. To qualify, there must be a minimum of 6 remittance transactions and average daily balance (ADB) of ₱25,000 within the past 12 months.
The life and accident insurance coverage of BDO Kabayan Savings Account is computed as 50% of ADB plus 50% of total remittance within the last 12 months, not exceeding ₱1 million.
BPI Save Up
BPI Save Up is a deposit account offered by the Bank of the Philippine Islands. It is suitable for people who would want to set aside part of their income for savings. What’s convenient is that the account can be accessed via the bank’s website or through the mobile application.
Some of the terms are:
- ₱0 initial deposit
- ₱250 minimum transfer amount
- ₱1,000 ADB
- ₱5,000 balance to earn interest
How much is the free life and accident coverage of BPI Save Up? The amount is computed as 5x ADB, up to ₱2 million.
BPI Pamana Savings
- Card: ₱25,000
- Passbook: ₱75,000
- US Dollar Account: $1,000
According to the Pamana Savings Terms and Conditions, account-holders who must be at least 15 and no older than 60 are not required to undergo any medical tests or to pay any premiums to avail of the free life insurance. The website also contains terms and conditions covering contestability of illnesses and restricted areas.
How much is the free life insurance coverage of BPI Pamana Savings? The worth of the free life insurance is 3x ADB of the past three months preceding depositor’s demise, up to ₱2 million, and for US Dollar account up to $40,000.
CIMB UpSave is a savings account paying out higher interest rate than the basic deposit accounts offered elsewhere. It has no initial deposit, no maintaining balance, no minimum balance required to earn interest, and no penalty for withdrawal.
Additionally, it can be opened online through the mobile app anytime, anywhere. Documentary requirements can be submitted online, no need to visit a physical branch.
According to CIMB UpSave Product Disclosure Sheet to quality for the free life insurance benefit, the coverage is renewed monthly subject to terms and conditions. The account must have at least ₱5,000 ADB for one month. In order to be eligible, the depositor must be at least 18 years old and no older than 64 years old.
How much is the free life insurance coverage of CIMB UpSave? It is computed as 1x the ADB of the three months before the death of the account-holder, up to ₱250,000.
GCash users can take advantage of CIMB GSave, a savings account with high interest. It has no initial deposit and minimum balance. Through GCash, users can check account balance and history of past transactions, as well as move funds to and from GCash and accont. And through CIMB’s app, one can transfer funds between CIMB account.
To be eligible, the depositor must be a fully verified GCash user, between 18 and 64 years old, and maintain ADB of ₱5,000 for one month.
How much is the free life insurance coverage of CIMB GSave? It is equal to 1x ADB of three months prior to depositor’s death, up to ₱250,000.
Maybank Save ‘n Protect Savings Account
As funds build up in Maybank Save ‘n Protect Savings Account, depositors can avail of life insurance that comes free with the account. To be eligible, the account must have at least ₱50,000.
What’s more, the minimum balance to earn interest is ₱20,000. The bank has established presence in Southeast Asia, so checking the account and ATM access are possible in countries like Malaysia, Singapore, and Brunei.
How much is the free life insurance coverage of Maybank Save ‘n Protect Savings Account? It provides insurance cover of 2x ADB of the month prior, up to ₱5 million.
RCBC All-in-One Checking Account
RCBC All-in-One Checking Account is a customizable bank account. It allows account-holders to select features that they see suitable for their needs, and the bank requirements are adjusted accordingly. The website offers an intuitive, interactive way to pick and choose features.
For instance, depositors can elect to get a debit card and a transaction journal with or without a checkbook. From there they can move on to selecting a range of add-ons such as life insurance, personal accident insurance, card insurance, and ability to withdraw at any Bancnet ATM without incurring any extra charges. The ADB requirement when these features are enabled either singly or as a whole shows up instantly.
Moreover, the account follows tiered interest. The higher the savings, the higher the interest earnings.
How much are the free life, personal accident, and card protect insurance covers of RCBC All-in-One Checking Account? According to One Account Add-Ons, life insurance is equal to 2x the initial deposit for new accounts or 2x ADB of the previous six months, up to ₱1 million. The level of personal accident insurance on the other hand depends on the monthly ADB, up to ₱1 million. Lastly, the card protect insurance is up to ₱50,000.
How much is the free life insurance cover of RCBC eWoman Savings Account? It is equal to 3x ADB of the previous six months, up to ₱2 million. The insurance is from Sunlife Grepa.
RCBC eWoman Savings Account
RCBC eWoman Savings Account designed for women. The account comes with ATM and passbook. Considered by RCBC as premium savings, it requires ₱15,000 initial deposit and ADB. It also requires ₱25,000 balance to earn interest.
RCBC eWoman Checking Account
The bank also offers RCBC eWoman Checking Account. The opening deposit of this checking account and its required ADB is ₱35,000. Pus, it comes with free life insurance.
RCBC iSave is a virtual savings accounts that has free personal accident insurance and hospitalization benefit. No zero initial deposit and zero maintaining balance, anyone can open the account from the comfort of their homes. And the balance to earn interest is ₱5,000.
RCBC Hexagon Membership
RCBC has Hexagon Membership program that allows, among other perks and privileges, a free life and card insurance. For a depositor to qualify, one has to have a total deposit of at least ₱100,000.
The free life insurance plan of the Hexagon member is offered to eligible Filipinos with an active account, has met the required ADB level and of ages between 18 – 66 years old. The face amount is equal to 100% of ADB up to a maximum of ₱5 million, subject to terms and conditions.
On the other hand, the RCBC Hexagon Club Debit Card Insurance comes in handy on situations where the card is lost or stolen, unauthorized charges, and cash protection cover for instances due to robbery, hold-up, or assault and machine tampering
Robinsons IPONsurance is a bank account that comes with a passbook. The initial and maintaining balance, as well as the balance required to be eligible to earn interest, is at least ₱20,000.
In addition, a life insurance is given free with the account. Depositors must be at least between 18 and 65 years old in order to be considered for coverage.
The face amount can be equal to 2x to as high as 4x the ADB, subject to the ceiling of ₱4 million as well as to the terms and conditions. The higher the ADB, the higher coverage. Additionally, the maximum face amount of the policy may be subject to limits as determined by the age of the insured. For depositors aged 51 to 65 years old, the maximum cover is only 1x ADB.
What’s more, no check-up is required. The account-holder is qualified right upon the start of account.
Security Bank All Access Checking Account
Security Bank All Access Checking Account is a savings account that also functions as a checking account. The bank issues an ATM card, checkbook, and passbook. The opening balance is 5,000 while the maintaining balance is 25,000. In order for the account get interest, the deposit must be at least 100,000.
Moreover, account-holders are able to enjoy a free life insurance from FWD Philippines. The face amount is 3x ADB to a maximum of ₱3 million. To add, there is a terminal illness benefit equal to the value of the life insurance up to ₱2 million and accidental death benefit equal to ADB, with a limit set at ₱3 million. Qualified depositors are those who are between 18 and 60 years old. No health check-up is needed, and coverage becomes effective upon activation of the account.
UnionBank Account Savings Plus
UnionBank Account Savings Plus comes with zero opening account balance, ₱25,000 maintaining balance, and ₱100,000 balance to get interest. The bank can issue a Visa debit card, which is optional to the account.
What’s more, it has an inclusive free life insurance, burial, terminal illness insurance, and accidental death and disability. Qualified depositors are those who are at least 18 years old and no older than 60 years old. The free life insurance coverage can be 3x ADB up to maximum of ₱3 million, subject to terms and conditions, while terminal illness is half of the life insurance and burial is ₱30,000.
Veterans Bank Long Term Deposit Hyper Saver
A couple of corporate accounts from Veterans Bank have attached free life insurance. The first of which, Hyper Saver, is a time deposit with a maturity of 5 years and 1 day. The minimum required placement is ₱100,000.
The insurance coverages include death due to accident/loss of life, murder, or assault as well as permanent disability or dismemberment due to accident (equal to 1x ADB, no more than ₱5 million); and burial assistance equal to 25% of accidental death benefit up to ₱250,000 ad 12.5% to those aged 71 – 75 years old.
Veterans Bank Long Term Deposit Maxi Saver
Veterans Bank Long Term Deposit Maxi Saver is another corporate account that includes insurance coverage. The term of the time deposit is at least 5 years and 1 day, with the minimum required placement of ₱100,000.
Among the free insurance that is inclusive with the account are: accidental death or loss of life, daily in-hospital benefit due to sickness or accident-related injuries, cash assistance for loss of life, permanent disablement or dismemberment due to accident, and unprovoked murder and assault.
Veterans Bank Long Term Deposit Advantage Plus
Veterans Bank Long Term Deposit Advantage Plus is a time deposit for corporate banking. It requires at least ₱100,000 placement, which is considered matured by the end of 5 years and 1 day. Account-holder can get the interest monthly.
The insurance component is the same as that of the Maxi Saver.
How can you open a bank account with insurance?
- Check which account may be the most appropriate for you.
- Does the bank offer them?
- Prepare at least one valid ID card.
- Prepare for requirements that the bank may ask of you.
Prepare a list of beneficiaries.
- Go to the branch, or open an account online whichever the case maybe.
- Wait for the confirmation and activation of the account.
- See if you can get confirmation for the effectivity of the free insurance.