The introduction of a “pre-approved term life insurance” service on PhonePe’s platform was revealed on Friday.
The purpose of this feature is to remove the barrier to insurance coverage for millions of Indians by removing the need for proof of income at the time of policy acquisition.
PhonePe’s debut marks the beginning of a new chapter in financial inclusion in India by bringing insurance products into the mainstream and offering the extra benefit of instant access to life insurance coverage without a burdensome income verification process.
To make this service available on its platform, the business has teamed up with top insurers. Through this arrangement, insurance carriers can now offer a larger number of customers—more than 30 million people—than they could have in the past since they lacked the necessary income documentation to qualify for term insurance.
The PhonePe platform now makes it easy for millions of users, including retailers, independent contractors, gig workers, and many more user groups without official documentation of their income or compensation, to obtain term insurance products. In reality, the company’s main goal is to reach up to 50 million people by the end of this year by greatly increasing the scope of this offer.
“We are thrilled to share the news that our platform’s ‘pre-approved sum assured (PASA)’ feature has launched. By making the products more accessible and affordable to Indians from a variety of socioeconomic backgrounds, this initiative aims to bring previously underserved people into the term life insurance net, according to PhonePe Insurance Broking Services CEO Vishal Gupta.
Through close partnerships and thorough collaboration with industry leaders, we are able to simplify the user experience, develop industry-leading custom services, and inclusively solve problems for certain cohorts. Our goal is to increase the nation’s insurance adoption rate by facilitating the purchase of insurance for everyone in a straightforward, affordable, and easy manner, Gupta continued.
PhonePe determines a customer base for whom the pre-approved term insurance process can be activated based on the underwriting guidelines of its insurance partners. In order to empower users and adhere to the regulatory underwriting guidelines, the company has worked cooperatively with the insurance providers on these indicators.
