PhonePe Launches Term Life Insurance Plans

PhonePe Launches Term Life Insurance Plans - Should you optPhonePe Launches Term Life Insurance Plans

Couple of days back, PhonePe, a digital payments platform has launched Term Life Insurance Plans in India. PhonePe Term Life Insurance Plans are launched in collaboration with ICICI Prudential Life Insurance. What are the features of PhonePe Term Life Insurance Plans? Should you opt for such Term Life Insurance Plans from digital payment platforms?

Also Read: Best Term Insurance Plans in India

About PhonePe Insurance

Flipkart owned PhonePe has emerged as an important platform for buying insurance plans, especially during covid-19 break-up. During the  lockdown period and post lock-down period, i.e. Apr-20 to Sep-20 it has sold 5 Lakhs insurance policies, especially in Tier-2 and Tier-3 cities where people are buying for the first time. Their user base is about 70% from Tier-2 and Tier- cities, hence it was able to tap such opportunities.

PhonePe has launched several insurance products earlier like

1) Hospital daily cash insurance

2) Dengue and Malaria insurance

3) Coronavirus insurance

4) Domestic multi-trip insurance

5) International travel insurance

6) Bike and Car Insurance

7) Personal Accident Insurance

Now PhonePe has launched Term Life Insurance Plan in India in collaboration with ICICI Prudential Life Insurance.

Features of PhonePe Term Life Insurance Plan

Here are the features of this term insurance plan.

PhonePe Term life insurance plan is offered in collaboration with ICICI Prudential Life Insurance. Means PhonePe does not directly offer such plans, it is just a 3rd party in this entire transaction.

One can opt for sum assured of Rs 1 Lakh to Rs 20 Lakhs in this term insurance plan.

This term insurance plan of PhonePe is issued instantly by logging into your PhonePe App.

No medical tests / health check-ups required to issue the term insurance plan.

No paperwork is required to be done to issue this term plan.

Term insurance premium starts as low as Rs 149 per annum.

PhonePe users who are in the age group of 18 to 50 years and earning minimum Rs 1 Lakh per annum can avail this term insurance plan through their App.

Such term insurance plans issued through PhonePe App can be renewed through this App.

How PhonePe users can opt this term insurance plan?

PhonePe users can visit their mobile App

Visit My Money section of the App

Visit insurance section

Select Term Life Insurance

Select the amount of sum assured which the user wants to get insured

Provide the basic details

Provide the nominee for the insurance

Click submit and pay premium money

Term life insurance is issued instantly

What are the PhonePe company views on this term insurance plan?

PhonePe indicate that India’s insurance penetration is about 2.73%, mainly due to lack of awareness and confusing paperwork. It is said that the problem is more prevalent in tier 2 cities and beyond, where a large population of the country resides. Therefore, the digital payments company that has over 250 million user base hopes to bridge the gap

Commenting on the launch of the term plan, Mr Gunjan Ghai, Vice President 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.”.

Should you opt for Term insurance plans from digital payment platforms?

PhonePe was able to sell more than 5 Lakh insurance policies during April, 2020  Sep-2020 and the majority of the insurance customers are from Tier-2 and Tier-3 cities that too who are first time buyers. Term insurance is the financial security provided to your family in your absence. When you directly approach life insurance companies, the term insurance premiums could be higher compared to such special offers provided by digital payment platforms. One should always compare premium, term insurance benefits of regular as well going through PhonePe and any hidden factors before opting for such term insurance plans from 3rd parties.

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Suresh KP

One comment

  1. Hello Sir,

    What about this term insurance after 3 completed years. Will the nominee get claims after 3 completed years if anything happens to the insured person. IRDAI rule # 45 is applicable to this online scheme?

    Rajesh Thankappan.

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