MobiKwik Offers Instant Life Insurance at Rs 20 – Should you opt?
Digital payments company, MobiKwik has launched Microinsurance product. It is offering life insurance for just Rs 20. Every one is a little curious on how they can offer a life insurance with such low premium. They are offering this life insurance in collaboration with ICICI Prudential Life Insurance. What are the details of MobiKwik Life Insurance? How MobiKwik is able to offer life insurance with such small premium? How does MobiKwik Life Insurance compare with direct insurance offered by ICICI Prudential Life Insurance. What are the hidden factors in this? Should you opt for MobiKwik Life Insurance or avoid?
Overview about MobiKwik
MobiKwik is digital payments company in India. It provides a mobile phone based payment system and digital wallet, which is similar to PayTM. Customers add money to an online wallet that can be used for payments.
Overview about MobiKwik Life Insurance
MobiKwik earlier launched accidental insurance in Nov-2018 with similar amount of as low as Rs 20. Now in collaboration with ICICI Prudential Life Insurance, MobiKwik is offering Life Insurance to all its App users.
Features of MobiKwik Life Insurance
1) MobiKwik is offering life insurance in collaboration with ICICI Prudential Life Insurance.
2) It offers life insurance for Rs 20 per month for every Rs 1 Lakh Sum Assured.
3) It offers life insurance for Rs 30 per month for every Rs 1.5 Lakh Sum Assured.
4) It offers life insurance for Rs 40 per month for every Rs 2 Lakh Sum Assured.
5) You can buy this life insurance on MobiKwik App online.
6) The process is paperless and takes just 10 seconds to complete.
7) Instant Policy would be issued once the 2 step process is completed on MobiKwik App.
MobiKwik indicated that it would keep adding insurance products going forward and the App would recommend insurance products based on existing profile, advanced data analytics and based on artificial intelligence algorithm.
What does MobiKwik say about this life insurance offer?
Commenting on the launch of this life insurance, Upasana Taku, Co-founder, MobiKwik said, “Over the past 9 years, Mobikwik has designed products that are aimed at transforming the financial landscape and driving financial inclusion in India. Our foray into the life insurance category is in line with our vision to bring about an impactful change in the way financial services are distributed in India. As per a recent report by ASSOCHAM released in partnership with a research firm called APAS, the insurance industry in India is expected to reach $280 billion by 2020. The report also states that the life insurance industry in the country is expected to grow by 12-15 per cent annually for the next three to five years”.
What does ICICI Prudential Life Insurance comment about this collaboration with MobiKwik?
Mr Puneet Nanda, Dy Managing Director of ICICI Prudential Life Insurance said, “The paperless on-boarding process paves the way for MobiKwik’s large user base to purchase life insurance. Customer Centricity is the core philosophy of both organizations and we look forward to a long and mutually beneficial relationship.”
How to apply for MobiKwik Life Insurance?
It is simple.
1) You can open MobiKwik App
2) Click on Life insurance option
3) Complete the details and submit
MobiKwik Life Insurance Vs Life Insurance directly offered by ICICI Life Insurance
MobiKwik is a digital payment company, however, is offering life insurance through ICICI Life Insurance. On the other hand, ICICI Life Insurance directly offers life insurance. Let us compare to check which is better.
1) Premium: MobiKwik offers Life Insurance of Rs 1 Lakh per Rs 20 per month. Means per year it would be Rs 240 per annum. ICICI Life Insurance offers lowest of Rs 50 Lakh Policy for Rs 6,000 to Rs 15,000 premium depending on the age and tenure of the term plan (age of 30-45 years + 20-30 year tenure considered here). Even if we do simple math, life insurance per Rs 1 Lakh works out to be between Rs 120 to Rs 300. So both Premiums are in line.
2) Tenure of the Life Insurance: MobiKwik offers life insurance for only 1 year. However, ICICI Life Insurance offers the term plan for a minimum of 5 years and maximum of 50 years (depending on the maximum age, it may restrict to lower tenure). Means, ICICI Life Insurance plan is complete plan.
3) Process time to issue policy: MobiKwik claims it would take just 10 seconds to issue the policy and is paperless. ICICI Pru Insurance would take anywhere between 2-10 working days to issue the policy, after you filled the online application. Hence MobiKwik would score good in this area.
Should you opt for MobiKwik Life Insurance?
One would get tempted when it says Rs 20 for life insurance. You should ask yourself a few things
1) Are you getting life insurance at lower premiums? In this case, the premiums are in line even if you go direct to ICICI Life Insurance Term Plan.
2) Are you okay to take short term life insurance for 1 year? Life insurance is taken for long term security so that even in your absence, your family should be able to survive. Hence, one should prefer to take life insurance till your income stops or higher period than that. E.g. if you are at 30 years age, you can take life insurance for another 30+ year. If you are at 45 years age, you can take it for 15+ years. You should not worry every year about taking the new life insurance policy as many life insurance companies, may deny as your age grows (as you might get exposed Diabetes etc. and medical check-ups required). Life insurance once taken would continue for the rest of your life unless you want to take any additional sum based on your increase in your income or increase in higher inflation rate.
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MobiKwik Offers Instant Life Insurance at Rs 20 – Should you opt