InstantPay is offering life insurance at affordable premiums to India’s vast population with the aim of better financial inclusion. Find out how.
Did you know that as per the latest industry data, penetration of life insurance in India is quite low? Almost 75% of Indians are still uninsured, despite the risk of catastrophes such as floods and cyclones. This is often due to a lack of awareness about insurance, especially among those who are unbanked or under-banked in India. However, not having life insurance can pose a big problem for people who are below the poverty line or are daily wage workers.
Consider this example to understand the importance of life insurance
Ramesh is the sole breadwinner of a family of six members and has underage children and old parents. He works in an industry that is full of occupational hazards and is rife with potential dangers, which may threaten his life and livelihood anytime. Ideally, life insurance will help him protect his family from a financial setback, in case of any untoward incident.
However, even when the number of dependents is high, most low-income families in India do not feel the need to get insured, simply because they don’t know how to get life insurance and their inability to pay high premiums. It is a common misperception that only high-income individuals can avail insurance. In some cases, even if low-income families are aware of the benefits, insurance is considered to be complex and beyond their reach. They also find it to be a time-consuming process, which involves medical examination and other factors.
How InstantPay has transformed this challenge into an opportunity
India has been witnessing a revolution in the way transactions are being conducted. Recent occurrences such as demonetization and pandemic have encouraged people to use digital wallets instead of cash. Payment technology is definitely set to change the way people bank or buy financial products. However, despite a widespread network of traditional banks, millions of Indians still remain unbanked, creating a huge market that remains unexplored.
So, after considering this untapped potential market and to help the low-income or unbanked population get life insurance, InstantPay has introduced a new affordable policy for such individuals. This will enable people from semi-urban or rural areas to get an opportunity to secure their lives through simpler means and affordable premiums. This is where payment technology comes into the picture. Through InstantPay’s portal or app, it will be possible to distribute this fintech product to masses in tier II and tier III cities, over the counter, making it easy to make payments and view account details.
With this objective, InstantPay will be leveraging its extensive network of merchants to provide the best life insurance policy, making insurance as easy as running an errand. In lieu of this, InstantPay has already obtained license from the Insurance Regulatory Development Authority (IRDA) to enter this sector. This will prove to be an additional income source through commission for InstantPay merchants.
By following an easy step-by-step procedure, authorized agents can help their customers get insurance within a couple of minutes. All they have to do is provide basic details and identification documents. The whole process has been simplified and customers can easily pay the premium or renew the policy with the help of InstantPay’s Digi Kendra outlet.
Salient features of this policy
1. Ample insurance coverage for individuals between the age group of 18 and 64 years
2. In case of death of the insured, the nominee can claim the insured amount
3. The annual premium is low and extremely affordable
Hence, backed by advanced technology, InstantPay is offering affordable life coverage to many small traders and individuals working in unorganized sectors. In the long run, this will enable the economically vulnerable section of India to stay safe and survive in emergency situations.