Should you buy PhonePe's term insurance policy?2 min read . Updated: 14 Jan 2021, 03:31 PM IST
- The premiums start from as low as ₹149 per annum for a sum assured of ₹1 lakh and go up to ₹3,517 for a sum assured of ₹20 lakh.
PhonePe, a popular digital payments platform, has joined hands with ICICI Prudential Life Insurance to launch a new term insurance policy. The premium of the term insurance plans starts from as low as ₹149 per annum and offer sum insured between ₹1 lakh and ₹20 lakh. The policy has to be renewed every year.
Here is a closer look at the insurance policy and its features:
The policy framework
According to PhonePe press release, “One can get this group term life insurance in a few simple steps from the mobile app. In 'My Money' section of the PhonePe app (both Android and iOS), one 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 the basic details of the person being insured and their nominee, one can complete their purchase by paying instantly online via PhonePe app only."
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Who can buy and what is covered under the policy?
You can buy this term insurance if you are aged between 18 years and 50 years, and registered with PhonePe for a minimum period of 3 months. You can only avail this policy if you are earning ₹1 lakh per annum or above. Moreover, you can only proceed to buy this policy if you've never had any medical conditions related to covid-19, heart, kidney stroke, cancer, diabetes or hypertension, etc. However, you can buy this policy without the hassle of the usual health check-up, and with zero paperwork.
This policy provides sum assured ranging between ₹1 lakh and ₹20 lakh, depending on the premium amount. The premiums start from as low as ₹149 per annum for a sum assured of ₹1 lakh and go up to ₹3,517 for a sum assured of ₹20 lakh. Except suicide, the policy covers natural death, death due to accident, natural calamity or any illness.
Should you buy it?
Rakesh Goyal Director Probus Insurance said that life insurance in India is still largely under-penetrated and digitization is the way forward to spread insurance awareness. PhonePe users can buy the policy without the hassle of health check-up and can be renewed easily after expiration of the policy.
"We have always believed that one should have a sum insured of at least 10-12 times of the annual income and in this regard, the sum insured offered is pretty low. To have a long-term insurance cover, once can also look at standard term insurance plans called Saral Jeevan Bima as here they don’t have to renew the policy every year. For starters, one can look at policy offered by PhonePe, but later they should have a long-term pure term plan with higher sum insured," Goyal said.
Further, Naval Goel, CEO & Founder, PolicyX.com said that it is not good to invest in such a type of term insurance policy. Term Insurance should be brought from a long-term point of view. Only a single year coverage is not sufficient. There are many benefits that a customer can get from a long tenure term insurance plan and this plan might not be able to offer the same. It just covers risk for 1 year. “However, those who want to invest in short tenure term insurance policy with no paperwork can consider this option," Goel said.