Users can avail the policy instantly, without any medical tests, on the PhonePe app with an assured sum ranging between ₹1 lakh to ₹20 lakhs.
Digital payments platform PhonePe has announced the launch of Term Life Insurance plans on its platform in association with ICICI Prudential Life Insurance. This policy can be availed instantly on the PhonePe app without any health check-ups and paperwork through an all digital process. The premiums start from Rs 149 per annum.
India’s population has an insurance penetration of just 2.73 per cent. Lack of awareness, confusion about the myriad paperwork and sub optimal experience with the hassle of a health check, have been the key reasons for this problem. This is especially true for Indians in tier 2 cities and beyond. PhonePe with its over 250 million user base could help improve awareness and penetration of term life insurance products.
All of PhonePe’s users aged 18 to 50 years and earning INR 1 lakh per annum or above can avail this policy instantly on the platform. Furthermore, without the hassle of the usual health check-up, and with zero paperwork, this policy insures the user for a sum ranging from ₹1 lakh to ₹20 lakhs, depending on the premium amount, and can be renewed seamlessly upon expiration on the PhonePe app.
Commenting on the launch, Gunjan Ghai, VP and Head of Insurance at PhonePe said, “Insurance as a product has remained largely unpenetrated in India especially in the geographies, age and income groups that need it the most. Prohibitive costs of creating awareness and then the cost and effort of distributing the right ticket size term insurance product are largely responsible for this issue. We at PhonePe are excited to partner with ICICI Prudential to help solve this problem and also to help our user base with a unique product specially tailored for their needs.”
Users of PhonePe can obtain their term life insurance in a few simple steps. In the “My Money” section of the app (both Android and iOS) they can visit the “Insurance” section and proceed by selecting ‘Term Life Insurance’ and select the sum they would like to be insured for. After providing basic details of the person being insured and their nominee, the user can complete their purchase by paying instantly online through PhonePe.