PremiumPhonePe, one of the most popular digital payments platform in India, joined hands with ICICI Prudential Life Insurance to unveil a new term insurance policy. The premium starts from as low as ₹149 per annum. The policy insures the users for a sum ranging from ₹1 lakh to ₹20 lakh, depending on the premium amount. Customers can avail the insurance policy instantly on the PhonePe application without any health check-ups. "Millions of PhonePe users can now protect their families from financial turmoil in the event of an untimely demise," the company said in a statement.
India’s population has an insurance penetration of just 2.73%, PhonePe noted. "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," said Gunjan Ghai, vice president and head of insurance at PhonePe. With its over 250 million customer base, the popular platform "aims to improve awareness and penetration of term life insurance products and solve this industry wide issue."
Anyone aged 18 to 50, earning at least ₹1 lakh per annum will able to buy this policy. No prior health-check up or paperwork is required for buying this term insurance policy. Customers can also renew their policy over the application, once it expires.
Here's how one can purchase this policy from PhonePe application
1) PhonePe users need to click on the “My Money" section of the application (both Android & iOS).
2) Then, the users have to visit "Insurance" section and select ‘Term Life Insurance’ section.
3) Customers then need choose the sum they would like to be insured for.
4) Once they provide the basic details of the person being insured and their nominee, they need to pay the amount online to complete the purchase.
“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," Gunjan Ghai added.
PhonePe earlier said that it processed over 11 million insurance policy premium payments in 2020. Customers can pay insurance premiums for over 30 insurers over the platform. "PhonePe witnessed strong and active participation from tier-2 and tier-3 cities with 80% of the premiums being paid by customers residing in these markets," the company said.
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