Airtel Offers Free Life Insurance on Rs 249 Prepaid Plan – Should you opt?

Airtel Offers Free Life Insurance on Rs 249 Prepaid Plan – Should you optAirtel Offers Free Life Insurance on Rs 249 Prepaid Plan

Airtel has announced a few days back that it is offering free life insurance coverage for its prepaid users in collaboration with HDFC Life Insurance. It is not new that non insurance companies offering life insurance coverage in partnership with insurance companies. Earlier Mobikwik has offered Instance Life Insurance as low as Rs 20 per month. To attract customers, Airtel is now offering free life Insurance for its prepaid plan of Rs 249. What are the features of Airtel Free Life Insurance coverage on Prepaid Plan of Rs 249? How to avail this offer? Should you opt for Airtel Free Life Insurance coverage for Prepaid Plan of Rs 249?

Also Read: Best Insurance company as per IRDA Claim Settlement Ratio in 2019?

What are the features of Airtel Free Life Insurance coverage on the Prepaid Plan?

Airtel is in stiff competition and looking to compete with Reliance Jio in providing unique benefits.

1) Airtel is offering life insurance coverage in collaboration with HDFC Life Insurance.

2) Airtel is offering term insurance as part of the insurance coverage here. This is not money back plan or endowment plan.

3) All Airtel prepaid users who do recharge of Rs 249 with “Special Tariff Voucher” (STV) is eligible to get this free life insurance coverage in India.

4) This term insurance plan is bundled in Rs 249 STV prepaid plan for all the Airtel Users. Means this is inbuilt life insurance coverage. Since this is a pure term insurance plan, there is no maturity value.

5) The term insurance coverage would be Rs 4 Lakh.

6) The STV prepaid plan of Rs 249 comes with 2GB Data, unlimited calls to any network in India and 100 SMS per day.

7) This STV Rs 249 prepaid plan is valid for 28 days only. Term insurance coverage would also be valid for this period, i.e. 28 days only. Life insurance would get renewed once you recharge the plan for next 28 days.

8) Since this is a Group Insurance Plan of Airtel, this is covered only in India.

9) Postpaid users are not eligible for this life insurance coverage.

10) Along with the free insurance benefit, this Rs 249 plan also offers Airtel TV Premium subscriptions, Norton Mobile Security for 1 year, Rs 2,000 worth of cashback on buying a new 4G Phone and free subscription to Wynk Music.

How to avail this Airtel Free Life Insurance Coverage?

You can avail this free life insurance coverage quickly, however, there are some terms and conditions.

1) One has to be in the age group of 18 to 54 years to avail this offer. They have to declare that they are in good health.

2) Prepaid user has to recharge Rs 249 – Special Tariff Voucher (STV) which is valid for 28 days.

3) The customer has to register the first time for Life Insurance by visiting Airtel retailer store or sending SMS or by opening MyAirtel App. Post that for all recharges of Rs 249 STV prepaid plans, life insurance would get renewed automatically.

4) If you have multiple Airtel connections, the maximum coverage is limited to Rs 4 Lakh only.

There is no paperwork or medical examination required. One has to make a request to Airtel if they want a paper copy of Insurance coverage provided by them which would be from HDFC Life Insurance.

What does Airtel / HDFC Life comment about this offer?

Airtel said that the entire process is digitally delivered in a matter of few minutes at any Airtel retail store or on MyAirtel app. Airtel has over 1.1 million retail outlets, and as of December 31, 2018, its mobile services covered 786,134 non-census towns and villages and its network covered 95.3% of India’s population.

Airtel launched this offer its Chief product officer, Mr. Adarsh Nair said “Price, access and convenience of payments are barriers to adoption. With this innovation, Airtel is removing those barriers for providing basic insurance to a very large set of India’s population and making the process extremely simple – just recharge your phone and you are insured”.

Mr. Suresh Badami, Executive Director of HDFC Life, said “At HDFC Life, we are constantly looking at creating eco-systems that enable us to improve our reach of insurance products. Two of India’s customers-centric brands have come together to offer this innovative product. I am confident that this tie-up is a great opportunity to make insurance accessible to every Indian. We will continue to create more awareness and bring solutions that help reduce the protection gap in India.”

We have provided this information with limited information available on the internet. However, there is no additional info at Airtel or HDFC Life Insurance websites.

Should you opt for Airtel Free Life Insurance coverage for Prepaid Plan?

Airtel offers free life insurance coverage without any documentation and medical examination, which is a good move. However, it offers only for 28 days prepaid plan and such life insurance coverage gets renewed for every recharge plan you would be doing in future. If you fail to do any recharge, your policy would lapse. Hence, one cannot consider this Rs 4 Lakhs Term insurance coverage as an alternative to a complete term insurance plan. One need to have life insurance coverage for at least 10-12 times of annual income to cover for future expenses. However, such low life insurance coverage plans may supplement to the existing term insurance plans which you might have already taken. If you are a prepaid user, you can avail this offer, but don’t forget to take a full term insurance plan based on your current annual income or expenses and expected future expenses like child education or daughter’s marriage.  

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Airtel Offers Free Life Insurance on Rs 249 Prepaid Plan

Suresh KP

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