Digital wallet platform PhonePe launched a term life insurance plan a few days back in association with ICICI Prudential Life Insurance. The product offers instant no-paperwork-no-medical-test purchase of term life cover exclusively to registered members on the mobile app.
Is the product any good, and should you buy it? Here's some dope for you to decide.
Who is eligible? Not everyone is eligible to buy this policy. Here are some requirements: You must be in the age group of 18 - 50 years. Your annual income should be Rs 1 lakh. 2 lakh per annum or more to get a cover of Rs. 5 lakh and above. You must be registered on the PhonePe app for a minimum period of 3 months. Who is not eligible? This is a minefield and you need to be very careful here. If you fall under the definition of a politically exposed person, you may not find this policy. You cannot get this policy if you are a housewife, a retired person, or a student who has a history of heart, kidney loan, stroke, cancer, hepatitis, diabetes, high blood pressure, COVID19, They can't get the policy.
Wait there's more! Apart from these, we found a hidden announcement inside the Terms and Conditions link (image below) which most of us don't check. This requires you to clearly declare that you do not have a laundry list of health conditions such as high cholesterol, colitis, kidney damage, or HIV/AIDS
In our view, if you have any loan re or medical history, then you should avoid applying for this scheme. You don't want your family to get a surprise when it comes to claims. And got unpleasant surprises.
Other important terms you should know before signing up: This policy will not cover natural death in the first 45 days of the policy. Like regular term life policies, suicide is excluded in the first year. To be able to claim, you must be a member of the PhonePe app on the date of death (the app must be installed on your phone). To avoid any hassle if you buy the plan, make sure you never uninstall this app. It is a 1-year policy and not like regular term insurance policies which are for longer duration. This means that the next year when your policy comes up for renewal (and if you have any loan re/medical condition),it may get rejected. The policy being a group policy, coverage can be stopped on renewal by the loan company or PhonePe. Unlike regular term life plans, at the time of renewal • The premium can be changed based on the experience of the borrower in claims.
Download All Content This is a One Year Policy : This Term Insurance Offer from PhonePe One Group Insurance Policyrs All Group Policies are One Year , Short Term Policies . Renewal of this policy is subject to the ongoing relationship between the loan lender ICICI Prudential and PhonePe. If the relationship terminates, the cover will terminate on the expiry date of your policy. Term insurance is something in which you should invest for a long period to protect the financial security of your dependents, till you become financially free. With such a purpose, this short-term cover, without a guarantee of renewal, would make no sense.