Fintech giant PhonePe has introduced a new pre-approved term life insurance feature aimed at making insurance coverage more accessible to a broader audience. This initiative is designed to simplify the process of obtaining insurance by eliminating the need for income proof at the time of policy purchase.
Expanding Insurance Access
Vishal Gupta, CEO of PhonePe Insurance Broking Services, emphasized the goal of the initiative: “This launch aims to bring previously under-served customers into the term life insurance net by making the products more accessible and affordable to Indians across various socio-economic strata.”
Through this feature, PhonePe collaborates with its insurance partners to identify users eligible for the pre-approved term insurance process. The eligibility indicators are developed in line with underwriting principles set by regulatory bodies, ensuring compliance and accessibility for a wide range of users.
Targeting a Broader Audience
PhonePe’s new offering is particularly focused on reaching over 30 million individuals who have previously been unable to avail themselves of term insurance due to a lack of income proof. This includes a diverse group of users, such as merchants, self-employed individuals, and gig workers who typically lack formal salary or income documentation.
By providing access to term insurance products without the need for income verification, PhonePe is helping to bridge the gap in insurance coverage for those who have been traditionally excluded from such services.
PhonePe’s Growing Influence
Since its founding in 2016, PhonePe has rapidly grown to become a significant player in India’s digital payments sector. The platform boasts over 550 million registered users and a merchant network exceeding 40 million. With more than 270 million daily transactions and an annualized total payment value surpassing $1.6 trillion, PhonePe continues to expand its influence in the fintech landscape.
Contextual Timing
The introduction of this new insurance feature comes at a pivotal moment, as PhonePe is reportedly among the fintech giants participating in the Reserve Bank of India’s digital currency pilot. This aligns with the company’s broader strategy of driving financial inclusion and innovation across India’s rapidly evolving digital economy.