Executive Summary: Airtel and MobiKwik have tied up with insurance providers to offer term insurance policies. Airtel offers a life insurance cover when you purchase a ₹ 249 prepaid bundle. MobiKwik offers a life insurance policy for as low as ₹ 20. We compare and analyse the features here.
With increased competition, companies are trying out different strategies to compete for the customer’s attention. Let us look at two companies offering life insurance though it is not in their business.
MobiKwik announced the launch of digital life insurance on its app to its users some time back. Now Airtel has a new prepaid bundle plan that has an inbuilt insurance cover.
Let us look at the key features of both products –
MobiKwik announced the launch of digital life insurance on its app to its users some time back. Now Airtel has a new prepaid bundle plan that has an inbuilt insurance cover.
Let us look at the key features of both products –
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Details
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MobiKwik
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Airtel
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Partner Insurance Company
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MobiKwik’s partner is ICICI Prudential Life Insurance and Aegon. It offers a life cover.
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Airtel has partnered with HDFC Life Insurance to offer term insurance.
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Sum Assured and Premium
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Three options available – Sum assured amounts of ₹1,00,000, ₹ 1,50,000 and ₹ 2,00,000 available for monthly premiums of premiums of ₹ 20, ₹ 30 and ₹ 40 respectively.
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Airtel has a prepaid bundle plan of ₹249 which includes a life cover of ₹ 4,00,000 from HDFC Life.
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Eligibility Criteria and Process
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The customer should be between 18-50 years of age at the time of policy inception.
The customer can buy it online. It is a paperless product. The transaction is complete in a matter of seconds. |
The policy will be available to all customers in the age group -18-54 years.
No paperwork or medical examination required. A declaration of good health from the customer is required. When the first recharge is done, the customer can get the insurance through an SMS, the My Airtel App, or the retailer. |
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Renewal Terms
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It is a yearly policy and you have to renew it on an annual basis
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As long as the customer recharges the prepaid package, the policy will be valid. Recharge has to be done once every 28 days.
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Policy Cancellation
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You can cancel the policy within T+10 days, where T is the date of policy issued. 0.02% of the cover amount as stamp fee will be charged.
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When you do not recharge within the stipulated time, the policy will lapse.
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Our Analysis
There are millions of uninsured people in our country. So this is a good initiative as it is easily accessible and not expensive. But the sum assured provided by both companies is pretty low. You should consider it only if the sum assured is appropriate for you. If the prepaid bundle is useful for you, then you can buy it and treat the insurance cover as a supplementary cover.
Moreover in the Airtel insurance policy, If you fail to recharge, your policy would lapse. It is better to have a more concrete term insurance policy.
The MobiKwik insurance policy is just for a year. A term insurance cover should be for a long term. It is better to go for more comprehensive insurance policies.
There are millions of uninsured people in our country. So this is a good initiative as it is easily accessible and not expensive. But the sum assured provided by both companies is pretty low. You should consider it only if the sum assured is appropriate for you. If the prepaid bundle is useful for you, then you can buy it and treat the insurance cover as a supplementary cover.
Moreover in the Airtel insurance policy, If you fail to recharge, your policy would lapse. It is better to have a more concrete term insurance policy.
The MobiKwik insurance policy is just for a year. A term insurance cover should be for a long term. It is better to go for more comprehensive insurance policies.
Term insurance is an important part of your financial plan if you have financial dependents. Choose a policy wisely. Choose a policy that will cover financial expenses of the family in your absence.
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