Union Bank of India has launched an innovative financial product, the ‘Wellness Deposit’ scheme, which integrates health insurance with a term deposit, offering dual benefits to customers. This scheme is designed for retail customers, promoting both wealth creation and health protection.
The ‘Wellness Deposit’ scheme is available to resident individuals between 18 and 75 years of age, with a fixed tenure of 375 days and an interest rate of 6.75% per annum. Senior citizens receive an additional 0.50% interest. This product is a strategic move by Union Bank to offer a value proposition amidst declining deposit rates.
Key Takeaways
- The Wellness Deposit scheme combines health insurance with a fixed deposit, providing assured returns and protection against medical costs.
- Manipal Cigna Health Insurance provides the health insurance component of this integrated financial product.
- The scheme is available to individuals between 18 and 75 years old, either individually or jointly.
- For joint accounts, only the primary account holder is eligible for insurance coverage.
- The scheme offers a fixed interest rate of 6.75% per annum, with an additional 0.50% for senior citizens.
Understanding Union Bank Health Insurance 2025 Through the Wellness Deposit Scheme
Union Bank of India’s innovative Wellness Deposit Scheme is revolutionizing the way customers think about health insurance and term deposits. This scheme is a first-of-its-kind offering that integrates a term deposit with health insurance benefits for retail customers.
What is the Union Wellness Deposit Scheme?
The Union Wellness Deposit Scheme is designed for resident individuals aged 18-75 years, offering a fixed tenure of 375 days. It requires a minimum deposit of ₹10 lakh, making it a short-term investment option with health protection benefits. The scheme offers a complimentary super top-up health insurance policy with a sum insured of ₹5 lakh.
Key Features and Eligibility Criteria
The scheme has several key features, including facilities for premature closure and loans against the deposit, providing flexibility to customers. Eligibility criteria include being a resident Indian individual within the specified age range and having the financial capacity to deposit at least ₹10 lakh for the 375-day tenure. Nomination is mandatory for the Union Wellness Deposit Account as the health insurance is directly linked to the deposit amount.
Health Insurance Benefits and Coverage Details
The Union Bank Health Insurance 2025 offers comprehensive health insurance benefits through its Wellness Deposit Scheme. This scheme is designed to provide customers with a robust health insurance cover, ensuring they have access to quality healthcare.
Super Top-Up Health Insurance Coverage
The health insurance component of Union Bank’s Wellness Deposit Scheme includes a super top-up health insurance coverage of Rs5 lakh. This coverage is designed to complement existing health insurance policies, kicking in after an initial deductible of at least Rs5 lakh is exhausted. The insurance benefit includes cashless hospitalization facilities across network hospitals associated with Manipal Cigna Health Insurance, the partnering insurance provider.
Customers should note that the insurance coverage is valid only for the 375-day tenure of the fixed deposit and does not renew automatically with the deposit. The sum insured is Rs5 lakh, providing an additional layer of financial protection against medical expenses.
![a detailed illustration of the "Union Bank Health Insurance Coverage" with a crisp, clean, and professional visual style. The image shows the front page of a health insurance policy document, with the Union Bank logo prominently displayed at the top. The main section of the document is in the middle ground, showcasing the key benefits and coverage details in a clear, organized manner. The background is a soft, muted gray that provides a calm and authoritative feel. The lighting is natural and evenly distributed, creating a sense of openness and transparency. The overall composition is balanced and eye-catching, designed to effectively communicate the health insurance benefits and coverage to the reader.](https://nomadtrekkers.in/wp-content/uploads/2025/05/a-detailed-illustration-of-the-ampampquotUnion-Bank-Health-Insurance-Coverageampampquot-1024x585.jpeg "a detailed illustration of the "Union Bank Health Insurance Coverage" with a crisp, clean, and professional visual style. The image shows the front page of a health insurance policy document, with the Union Bank logo prominently displayed at the top. The main section of the document is in the middle ground, showcasing the key benefits and coverage details in a clear, organized manner. The background is a soft, muted gray that provides a calm and authoritative feel. The lighting is natural and evenly distributed, creating a sense of openness and transparency. The overall composition is balanced and eye-catching, designed to effectively communicate the health insurance benefits and coverage to the reader.")
Additional Benefits with RuPay Select Debit Card
In addition to health insurance coverage, depositors receive a RuPay Select Debit Card that offers various lifestyle benefits and privileges. This debit card can be linked to either an existing or newly opened savings/current account, requiring only the normal minimum balance as per the branch category.
The dual benefit structure of health protection and banking privileges makes this product unique in the Indian banking sector, addressing both financial and healthcare needs of customers.
Financial Aspects of the Union Bank Health Insurance 2025
Understanding the financial dimensions of Union Bank’s Health Insurance 2025 is crucial for potential investors looking for a reliable health insurance cum investment plan. This scheme offers a unique combination of health security and financial returns.
Rates and Comparative Analysis
Union Bank’s Wellness Deposit Scheme offers an attractive interest rate of 6.75% per annum for regular customers and 7.25% for senior citizens, making it competitive compared to other major banks in India. For instance, HDFC Bank and ICICI Bank offer 6.60% and 6.70% interest rates, respectively, on their FDs for one-year to less than 15 months. The bank’s competitive interest rate provides better returns for investors.
Investment and Limitations
The financial investment requirements include a minimum deposit of Rs10 lakh and a maximum cap of Rs3 crore per deposit account. While this may limit accessibility for small investors, it caters well to high-net-worth individuals and senior citizens with substantial savings. Additionally, Union Bank bears the premium cost for the health insurance component, effectively increasing the real returns on the investment.
Conclusion: Is Union Bank’s Wellness Deposit Right for You?
Union Bank’s Wellness Deposit scheme offers a unique blend of fixed deposit returns and health insurance coverage. This product is particularly beneficial for senior citizens who already have a base health insurance policy and are looking for additional coverage. To determine if this scheme is right for you, consider your financial situation and health insurance needs.
The scheme’s suitability depends on your ability to invest at least Rs10 lakh for 375 days without affecting your financial liquidity. While it offers a competitive interest rate of 6.75% for regular customers and 7.25% for senior citizens, it’s essential to weigh the benefits against the high minimum deposit requirement and limited insurance coverage period.