Insurance offers dual benefits against deposits 

Anwar Hossain, a private job holder, purchased a single payment savings insurance policy from a multinational life insurance company in the country in the hope of a secure future.

The 10-year policy with a monthly installment of Tk 2,000 covers medical assistance for eight diseases with a minimal premium of Tk98 a month.

During the policy period, he suffered a stroke and received medical treatment in the hospital for seven days. Against the policy, he received Tk 20,000 in insurance benefits per day.

Like Anwar Hossain, many conscious customers are interested in purchasing savings insurance policies to ensure a secure future and medical assistance for various critical diseases. That is why such schemes are becoming more and more popular day by day.

Shahidul Alam, a policyholder of an insurance company, told The Business Post, “If money is deposited in the bank, one gets the interest only on maturity. But if we keep the same amount of money in the insurance company obtaining a policy, we are getting many benefits including safe health care and financial benefits. So, every customer should open a deposit scheme like me.”

At present, 35 life insurance companies in the country are providing health services along with savings to customers through the DPS scheme with various offers.

The savings insurance scheme helps the low-income population of the country to have financial security in case of untimely death and a good life in old age by bringing them under insurance coverage.

Benefits of savings insurance scheme

Any healthy person between 18-60 years with a regular income can take this policy from the life insurance companies of the country. There are policies with different terms such as 5, 10, or 15 years. The premium can be paid annually, quarterly, or at any time subject to the approval of the management authority.

In return for the specified premium in these insurance policies, if the policyholder is alive and unharmed till the expiry of the term, he will get the insurance amount along with the earned bonus. If the nominee is injured or killed in an accident before the expiry of the term, the insurance amount along with the bonus will be paid to the nominee.

Multinational company MetLife has five savings insurance schemes, among which “MetLife Depositors Protections Scheme” is very popular among customers. This policy has four plans, namely platinum, gold, silver, and bronze. Anyone between 18-54 years gets various insurance benefits for a minimum term of seven years to a maximum of 20 years for an annual premium ranging from Tk 2,000 to Tk 60,000. Under this policy, financial benefits are provided if a customer suffers from eight listed diseases and in case of terminal illness, the financial benefits can be up to a maximum of Tk 40 lakhs.

Saif Rahman, chief communication officer of MetLife, told The Business Post, “MetLife Fixed Deposit Protection Plan is our most popular scheme through which it will help fulfill your various expectations in life and provide financial security to your family. If a customer takes this policy, we provide life insurance, additional insurance benefit for accidents, terminal illness benefit, disability premium waiver benefit, insurance benefit during hospitalisation, and insurance benefits on maturity.”

He said, “We paid insurance claims of Tk 2,548 crore in 2022. A large part of it has been paid to savings insurance customers.”

Pragati Life Insurance Company, a private life insurance company, has launched 22 savings schemes to attract customers. Among those, 6-installment insurance is very popular.

Jalalul Azim, chief executive officer of Pragati Life Insurance, said, “All our savings insurance schemes are well known among customers. Our newly launched 6-installment insurance scheme is very popular among customers. It is an attractive savings and financial security insurance scheme.”

“Zenith Islami Life Insurance Limited has an attractive DPS scheme – single pay savings insurance or single insurance. If one takes this scheme, as an ancillary insurance or benefit, we provide treatment for disfigurement and seven serious diseases,” said SM Nuruzzaman, CEO of Zenith Life.

“Moreover, twice the sum insured is paid to the customer on maturity. Even on the death of the insured, the nominee is paid double the sum assured, and income tax rebate is available on the premium paid,” he added.

Bengal Islami Life Insurance Chief Executive Officer Monirul Islam told The Business Post that if the policies under the DPS scheme become popular, the customers will save money and get health services such as treatment for various diseases under this policy.

What regulatory body thinks

Md Shah Alam, director of the Insurance Development and Regulatory Authority (IDRA), told The Business Post, “In order to increase the number of customers, the insurance companies should provide various insurance benefits besides savings to the customers under the DPS scheme.”

He said, “Besides depositing in the banks, every person should keep the DPS scheme in life insurance companies. Because if a customer keeps money in the bank, he gets only financial benefits, but through the policies under the DPS scheme of the insurance companies, the customers are provided with various benefits including financial benefits and health services. So, the customers should first take this policy from the insurance companies.”

“About 30 per cent of the total premiums of life insurers are currently collected through DPS insurance. The scheme will become more popular if it is promoted among the customers,” he added.

At the end of last year, the premium of the country’s life insurance companies was Tk 10,260 crore. They have collected around Tk 3,078 crore through DPS schemes.