Saving money requires a lot of discipline and sacrifice. It’s even more challenging to save money if you have been retrenched during this pandemic and you’re only just about to start building your emergency fund.
Luckily for you, there are several commercial banks that offer regular savings accounts with free life insurance without monthly premium payments. You just need to meet the minimum monthly average daily balance.
Here are 10 savings accounts with free life insurance that are worth checking out.
Minimum Monthly Average Daily Balance (ADB)
|BDO Kabayan Savings Account||P25,000||50% of ADB and 50% of total remittance for the past 12 months up to P 1 million|
|BPI Pamana Savings||P25,000 (ATM card)
|3x the average account balance up to P2 million
5x your account’s average MTD-ADB up to P2 million
|CIMB Bank UpSave||P100,000||Up to 1 million pesos|
|Maybank Save ‘n Protect Savings Account||P50,000||2x of previous month’s ADB up to P5 million|
|RCBC iSave Savings Account||None
|Free personal accident insurance and hospitalization benefit
3x of the 6-month ADB up to P2 million
|Security Bank All-Access Checking Account||P25,000||Up to 3x your ADB (up to P3 million|
|UnionBank Savings +||P25,000||3x of the ADB, up to P3 million (18-50 years old)
1x of the ADB, up to P1 million (51-65 years old)
|Veteran’s Bank Long Term Deposit (Hyper Saver, Maxi Return, and Advantage Plus)||varies||varies; accident or loss of life, hospitalization benefits, permanent disablement and more|
How Does a Savings Account with Free Life Insurance Work?
BDO, BPI, and Maybank offer a savings account with free life insurance. Thus, the coverage is based on your average daily balance (ADB), depending on the terms and conditions.
For instance, if you maintained P50,000 ADB for the past six months, you get 2x or 3x coverage. Most banks have a cap of P5 million, so the more you save, the higher coverage you will get.
BDO Kabayan Savings Account
BDO Kabayan Savings Account is ideal for OFWs that save and send remittances to their loved ones. You need to enroll your account to get the free life and accident insurance and meet the requirements.
Coverage is 50% of your ADB and 50% of the total remittances for the past 12 months, but not exceeding P1 million per account if the cause is a natural death.
The maximum accidental death benefit coverage is at P2 million.
To qualify, you need to have at least six remittances and maintained at least P25,000 for the last 12 months.
BPI Pamana Savings
BPI Pamana Savings is available in two product variants: an ATM or passbook. You have access to online banking to monitor your balance. Visit your nearest branch to open an account together with the free life insurance.
You don’t need to pay for premium payments for your insurance coverage under BPI-Philam. Furthermore, medical check-ups aren’t required but there’s a one year contestability period.
The coverage is thrice the average ADB for the past three months up to P2 million, applicable to 15 to 60-year-old account holders.
Lastly, to earn an annual interest of 0.250%, you must maintain an ADB of P25,000 for an ATM savings account and P75,000 for a passbook account.
BPI Direct Save-Up Automatic Savings + Insurance Saving
The Direct Save-Up doesn’t require an initial deposit. There’s no debit card, which is good if you want to avoid withdrawing funds you want to save. To earn an annual interest of 0.250%, maintain an ADB of P5,000.
If you have an existing BPI debit-based account, you can conveniently schedule fund transfers to your Save-Up.
The free basic life insurance and accidental death coverage under BPI-Philam are valued (10x) ten times of your account’s monthly ADB up to P4 million.
For accidental dismemberment, it covers up tp P2 million.
UpSave Savings account offers a 3.0% interest rate per annum to grow your savings. There’s no initial deposit required, and you can create a savings account using the CIMB Bank PH app.
The free life insurance has a coverage of up to P1 million, whereas the claims are based on (1x) times the average daily balance for the past three calendar months or the latest balance of the month before the insured’s demise.
To qualify for the free life insurance, you must maintain an ADB of P100,000. Meanwhile, there’s no minimum balance required for you to earn the interest. Plus, you don’t need to pay for annual fees.
Maybank Save ‘n Protect Savings Account
Maybank Save ‘n Protect savings account includes a free life insurance coverage that’s two times the previous month ADB. You have a passbook and ATM card to monitor your funds.
The interest rate per annum is 0.25% while there’s a maintaining balance of P20,000 to earn interest.
You can receive a maximum of P5 million coverage per account. To qualify for this free insurance, you need to maintain an ADB of P50,000.
RCBC iSave Savings Account
This is RCBC’s virtual savings account that doesn’t have an initial deposit or maintaining balance. Fill up the online application form, submit the documents required, and start saving with an interest rate of 0.15% to 0.20% per annum.
The free personal accident insurance and hospitalization benefit are included in this savings account. However, there’s limited information on the maximum amount of coverage, so we recommend that you speak with the bank first if you’re interested to get this type of account.
To earn interest, maintain an ADB of P5,000.
RCBC eWoman Savings Account
RCBC eWoman Savings account has a debit card with free life insurance that’s worth three times of your 6-month ADB. The account supports online banking and access to ATM cards, and it comes with a passbook.
The initial deposit required is P15,000. Maintain a daily ADB of P15,000 to qualify for the free life insurance from Sunlife Grepa, and the coverage is up to P2 million.
To earn an interest of 0.15% per annum, maintain an ADB of P25,000.
Security Bank All-Access Checking Account
Security Bank All-Access Checking Account is a combination of savings and checking accounts with an ATM card, passbook, and checkbook, and free life insurance from FWD. The initial deposit required is P5,000 with an interest rate of 0.10% per annum.
The free life insurance coverage is up to three times the ADB, with a maximum coverage up to P3 million. The terminal illness benefit is up to P2 million for account holders aged 18-50 years old.
There’s also a fixed amount of P25,000 for the Family Assistance benefit for burial expenses.
To earn interest, you must have an ADB of P100,000.
UnionBank Savings +
Savings + offers a savings account with an optional VISA debit card, access to online banking, and free life insurance without an initial deposit.
The free life insurance from Insular Life has coverage of basic life, accidental death and disability, burial, and Group Term illness benefit. All these are worth thrice your ADB with maximum coverage of up to P3 million for ages 18-50 years old.
The maximum coverage is reduced (1x) of the ADB up to P1 million for 51 to 60 years old.
For you to qualify for the life insurance, you need to have a maintaining balance of P25,000
Veteran’s Bank Long-Term Time Deposit (Hyper Saver, Maxi Return, and Advantage Plus)
Veteran’s Bank offers three types of long-term time deposits that have free life insurance coverage — Hyper Saver, Maxi Return, and Advantage Plus.
Unlike a regular savings account, you can’t withdraw your funds from the account until the maturity date.
Here’s a table of what’s included in the free life insurance under its corporate accounts:
|Hyper Saver||Maxi Return||Advantage Plus|
These long-term deposits have 5 years and 1-day maturity with a minimum deposit of P100,000. The interest rates are based on the prevailing market rates, so it’s better to contact the bank for more details.
Which savings account with life insurance is for you?
In this list, the CIMB Bank UpSave savings account has the highest interest rate per annum at 3.0%. However, to qualify, you need to maintain a monthly ADB of P100,000.
Maybank and Veteran’s Bank offer a maximum coverage up to P5 million but with requirements on each type of account.
BPI Direct Save-Up Automatic Savings + Insurance Saving have the lowest maintaining monthly ADB with the highest multiplier of up to 5x of your savings account, which is covered up to P2 million.
Whether you want a high-earning interest rate or a low maintaining balance with a high multiplier rate, it’s up to you. What’s important is how much you are willing to save and invest in life insurance that doesn’t require premium monthly payments.
Let us know which among these savings accounts suit your financial goals. Leave us a comment below!