PhonePe has announced the introduction of a novel ‘pre-approved term life insurance’ feature on its platform, a significant step toward enhancing financial inclusion. This new offering simplifies access to insurance by removing the need for income verification at the time of policy purchase.
The launch of this feature aims to make life insurance more accessible and affordable for millions of Indians who have struggled to obtain coverage due to the lack of formal income proof. It particularly benefits a diverse user base, including merchants, gig workers, and self-employed individuals, who often lack traditional income documentation.
In collaboration with top insurance providers, PhonePe has made this feature available, which also allows insurers to reach over 30 million people who previously faced barriers to acquiring term insurance. The company plans to extend this benefit to up to 50 million users by the end of the year.
Vishal Gupta, CEO of PhonePe Insurance Broking Services, highlighted the significance of the launch, saying, “We are excited to introduce the ‘pre-approved sum assured (PASA)’ feature, aimed at integrating previously excluded customers into the term life insurance market. This initiative is about making insurance products accessible and affordable across different socio-economic levels”.
Gupta also pointed out the company’s dedication to inclusivity, adding, “By partnering with industry leaders and working closely with them, we are enhancing the user experience and offering customized solutions that address specific needs in a more inclusive way. Our objective is to promote broader insurance adoption by simplifying the purchasing process and making it more affordable”.
PhonePe has utilized its underwriting criteria in partnership with insurance providers to identify users eligible for the pre-approved term insurance. This move represents a significant advancement in extending insurance coverage and providing greater financial security, while remaining compliant with regulatory standards.