8 Best Savings Account With Free Life Insurance This 2020

7 min. read By eCompareMo on

Save some money and provide your family against life’s financial uncertainties? Is it really possible with just one product? Enter savings accounts with free life insurance.

Between keeping your money at home and putting it in the bank, the best way to handle the money you put aside is by creating a savings account. This way, you can easily transfer money from one account to your savings, monitor your money in real-time, and earn interest every year.

But did you know that you can get free life insurance coverage by simply making a deposit? Currently, some banks now offer an interest-yielding savings account coupled with a free life insurance as long as your account remains open.

If you’re interested in hitting two birds with one stone, you might want to take a look at these upgraded versions of your savings account with life insurance to find out which bank offers the best version for you.

What are savings accounts with free life insurance coverage?

Exactly what it says on the label, this certain banking product is a deposit account that comes bundled with free life insurance to its account holder. This means that aside from accruing interest over time, your savings account will keep you protected as long as your account stays open and getting additional funds over time.

Although the savings part of the product is pretty straightforward, which means that you earn a fixed interest based on the account’s advertised rate, the life insurance part is where it gets interesting.

This isn’t your standard life insurance product, as it uses another way to calculate the coverage for you: They will use your account’s average daily balance (ADB).

In a nutshell, ADB is your account’s total amount value before the day ends. Using this, your life insurance contract states that the payout your beneficiaries can receive will be multiplied based on the fixed factors they posted.

For instance, in case you pass away and your last average daily balance ends up being ₱100,000 and the coverage factor is five times your ADB, then your beneficiaries will get ₱500,000.

Difference between savings + life insurance and standalone life insurance

To understand this specific banking product, you first need to understand life insurance itself.

First, there are two types of life insurance products out there: term life insurance and permanent life insurance. The former will only award the death benefit to the insured’s beneficiaries when the person dies within the specified term.

Meanwhile, the latter is an umbrella term for a type of death benefit that has no expiration limit.

This is where you can find you most common life insurance types such as universal life insurance (which come with a savings function) and variable universal life insurance (universal life with other investment options for greater returns).

Now that you know them, a savings with life insurance account takes cues from both products. First, the said combo has a limited term, with most accounts only offering the life insurance instrument until 50 years old.

As for the permanent life insurance aspect, it uses the combination of an investment vehicle and life insurance to attract potential customers.

Who is the perfect customer for savings with life insurance combo?

The savings account combo is basically for anyone who wants to have a moderate financial security they want to leave behind to their beneficiaries. However, the perfect customer for this is your young professionals who are still learning the ropes of saving money.

Why is this perfect for young people? On average, this type of savings account only awards life insurance coverage to anyone under 50 years old.

Unlike your permanent life insurance products, this means that you won’t enjoy the death benefit add-on when you age. Having a coverage while you’re young can be pretty handy, especially when you still can’t afford a separate life insurance coverage.

Because of its limitations, this cannot serve as a total replacement to a standalone life insurance product. If you can build a pretty solid savings account and work on your emergency fund, then you can start purchasing your life insurance from any of the country’s leading insurers for extra protection.

However, you should only do this when you’ve already covered other more important aspects of your finances, as mentioned earlier.

Read: The Top Life Insurance Companies In The Philippines

Complete list of savings with life insurance products in the Philippines offered by banks

If you need a more robust savings account—or you just want to level up your knack for putting money aside through a coin bank or alkansya—then this is the right product for you. Currently, these are the most common savings with life insurance products offered by banks in the market:

1. BPI Save-Up Automatic Savings + Insurance

With a configurable automatic transfer to your account and a life insurance benefit, learning how to save is easy with BPI Save-Up.

  • Minimum initial deposit: none, since you can set an automatic debit using your existing BPI account
  • Maintaining balance: ₱1,000
  • Minimum balance to earn interest: ₱5,000
  • Annual interest rate: 0.25%
  • Maximum insurable age: 60 years old
  • Benefits: Five times your account’s ADB with a maximum coverage of ₱2 million for basic life insurance, additional five times your account’s ADB with a maximum coverage of ₱2 million for additional death, and accidental dismemberment benefit in accordance with the schedule of dismemberment benefits of up to ₱2 million

2. BPI Pamana

With a more flexible type of account and currency, BPI Pamana is the perfect product for those who want to make sure their family is taken care of 24/7.

  • Minimum initial deposit: ₱25,000 for debit account and ₱75,000 for passbook account
  • Maintaining balance: ₱25,000 for debit account and ₱75,000 for passbook account
  • Minimum balance to earn interest: ₱25,000 for debit account and ₱75,000 for passbook account
  • Annual interest rate: 0.25%
  • Maximum insurable age: 60 years old
  • Benefits: Three times your account’s ADB for the past three calendar months, with a maximum of ₱2 million or $40,000

Read: 12 Best Kiddie Savings Accounts in the Philippines 2020

3. CIMB Bank UpSave

Combining the breakthrough technology of the all-digital banking account, a hefty interest rate, and a generous life insurance coverage, CIMB’s UpSave is a great option for tech-savvy upstarts.

  • Minimum initial deposit: none
  • Maintaining balance: none
  • Minimum balance to earn interest: ₱1
  • Annual interest rate: 4.00%
  • Maximum insurable age: None
  • Benefits: With a minimum insurable ADB of ₱100,000, you can get up to two times for the past three calendar months, with a maximum of ₱1 million

4. Maybank Save ‘n Protect Savings

Despite its unassuming nature, what sets Maybank’s savings with life insurance combo above others is its high ceiling limit, which is unlike other accounts.

  • Minimum initial deposit: ₱50,000
  • Maintaining balance: ₱20,000
  • Minimum balance to earn interest: ₱50,000
  • Annual interest rate: 0.25%
  • Maximum insurable age: None
  • Benefits: Up to two times of your ADB for the past three calendar months, with a maximum of ₱5 million

5. RCBC eWoman Savings

Designed for the modern woman who wants to take control of her life and finances, RCBC eWoman Savings comes with great account flexibility as well as life insurance for free.

  • Minimum initial deposit: ₱15,000
  • Maintaining balance: ₱15,000
  • Minimum balance to earn interest: ₱25,000
  • Annual interest rate: 0.15%
  • Maximum insurable age: None
  • Benefits: up to three times of your ADB for the past three calendar months, with a maximum of P2 million

6. RCBC iSave

Easy-to-open electronically, low barrier of entry, and free life insurance? RCBC’s iSave can be a great way for you to save and get insurance right now.

  • Minimum initial deposit: None
  • Maintaining balance: None
  • Minimum balance to earn interest: ₱5,000
  • Annual interest rate: 0.15% for up to balance of up to ₱100,000, 0.175% for balance from ₱100,000 to ₱500,000, and 0.20% for balance of ₱500,000 and up
  • Maximum insurable age: None
  • Benefits: personal accident insurance and hospitalization benefit

7. Security Bank All Access Checking Account

Beyond savings and insurance, Security Bank’s All Access account also gives you the power of a checkbook for ultimate flexibility.

  • Minimum initial deposit: P5,000
  • Maintaining balance: P25,000
  • Minimum balance to earn interest: P100,000
  • Annual interest rate: 0.10%
  • Maximum insurable age: None
  • Benefits: up to three times of your ADB for the past three calendar months, with a maximum of P3 million

8. UnionBank Savings Plus

Whether you’re starting out young or you just need to supplement your savings halfway through life, UnionBank’s Saving Plus account is a great product for everyone.

  • Minimum initial deposit: None
  • Maintaining balance: ₱25,000
  • Minimum balance to earn interest: ₱100,000
  • Annual interest rate: 0.10%
  • Maximum insurable age: None
  • Benefits: up to three times of the ADB for the past three calendar months with a maximum of P3 million for ages 18 to 50 years old and additional one times your ADB with a maximum of P3 million for accidental death and disability; one times the ADB with a maximum of P1 million for ages 51 to 60 years old and additional one times your ADB with a maximum of P1 million for accidental death and disability

Final remarks

A savings account coupled with a life insurance policy can be a great way to start your way towards financial freedom. However, keep in mind the limitations this product has, especially the feature that makes your death benefit highly reliant on your savings account’s balance.

To offset the potential adverse effects in your life insurance coverage, make sure that you keep your emergency fund separate from this and put as much amount as possible when you get an account like this to maintain high payout in case something unfortunate happens to you.

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