New Delhi [India], Sept 19 (ANI): Online insurance platform Coverfox.com on Tuesday announced the launch of a fresh user experience to term life insurance on its platform, which promises to deal with the eternal user procrastination issue in the product category.
An independent study conducted by the company on a sample size of 515 people across India revealed that a majority of people are aware of the benefits of term life insurance, but feel that the available options are too complicated. While 68 percent of the respondents were aware of term insurance benefits; 42 percent of respondents stated complexity of plans and lack of time as reasons for not signing up to the cover.
Understanding the underlying concern of term insurance customers, Coverfox has built a fresh experience that focusses on core term life coverage, with minimal level of product customization required, for a curated list of insurance products. This makes the process of insurance simple, clear and transparent. Trained experts will be available over call to solve product-related queries.
"Our research reflects the apprehension that the customers have around buying term life insurance. We realized that while almost everyone was aware of Term Life and its benefits, as many as 71 percent of people delayed their purchase once they were exposed to multiple variants and riders. Although traditionally complex products have helped extract higher ticket size for insurers, what the man on the street really wants is an affordable cover against early death. With age, the policy premium increases sharply, procrastination results in most individuals remaining uninsured, which actually is a big risk in today's time. We want to solve this one big problem for the customer, rather than upsell some frills and delay the customer's decision," said Mahavir Chopra, Director - Health, Life and Strategic Initiatives, Coverfox.com.
"Pradhan Mantri Jeevan Jyoti Bima Yojana (covering 3 crore families) has done a wonderful job at creating awareness around Term Life Insurance. In an economy, where 43 percent of the 1.3 billion population falls in the age bracket of 20-49 years, online term life insurance being extremely affordable can play a crucial role in creating social security for families. The idea is to make it easier for people to take a decision around term life insurance. A team of experts is available to help consumers understand term insurance better," added Devendra Rane, Co-founder and Chief Technology Officer, Coverfox.com.
Another significant reason for procrastination, found in the survey, indicated that customers were nervous around their nominee's claims experience - that the nominee(s) of the policy will not be caught-up in unnecessary procedural loops.
Along with the fresh user experience, Coverfox, hence, introduced a unique Nominee Assistance Program that provides integrated claims support, facilitates financial, legal counselling and psychological support. The service is free of charge for the policy holders of term life insurance.
Under this program, Coverfox has partnered with a number of service providers, like FinPeace for financial counselling services, Juno Clinic for psychological counselling and Vakil Search for legal counselling services among others, for the policyholders' nominees.
Nominee Assistance Program has been conceptualized to better address the customers' apprehensions. Through this assistance, Coverfox aims to reassure its customers that it will keep up the promise of financial security that they are making to their families by covering them under term life insurance.
Under the service, a policyholder's nominee will also be able to avail legal and financial planning assistance while claiming other life insurance policies too, even if not purchased from Coverfox.com. The claimant would also have access to the app by FinPeace to organize all their financial and legal documents, if needed it will assist the nominee in facilitating claims as well as transfer of assets.
According to Swiss Re's Mortality Protect Gap report for 2015, India's mortality protection gap is as much as 92 percent, which implies that savings and insurance fulfill less than 10 percent of the Indian population's protection needs. Despite this gap, pure protection and death benefit insurance products like term life insurance are less popular, because of lack of trust and awareness. (ANI)