No wonder, only one in three people in India has health insurance coverage, which includes both government and private health insurance schemes. But what if you knew that paying health insurance premiums can now be as easy as paying for your monthly OTT or grocery subscription?
Health Insurance, an Expense or an Investment?
Health insurance in India has always been viewed as an upfront financial burden rather than a safety net to protect one's financial interests. While the average per capita income in India is around Rs 16,000 per month, the premium for a health insurance scheme, when payable annually, is around 30 per cent of a month's salary (assuming Rs 5,000 as premium), making a one-time It becomes difficult to make payments. ,
The Public Health Foundation of India report also paints a grim picture, estimating that such costs push 55 million Indians into poverty every year. This scenario reflects the growing need for a safety net and helps users understand that health insurance is no longer a luxury, but a vital tool to safeguard their financial future.Monthly premium plans are light on the pocket and help users meet their healthcare needs
Recognizing the need to increase the accessibility and affordability of insurance products across all income groups, PhonePe launched a first-of-its-kind monthly subscription for insurance premium payments with flexible payment options ranging from Rs 500 to Rs 3,000 per month.
This feature makes health insurance as easy as paying one's recurring monthly household bills instead of being burdened with an annual lump sum payment. It's also easy on your pocket, convenient to pay for, and really matches our core ideology!
Monthly premium payment plans can help expand the options available to health insurance category users, especially modern Indian consumers.
This innovation was driven by our deep understanding of the end consumers and the fact that smaller monthly payments help reduce the financial burden for them, while also empowering them and giving them the option of comprehensive insurance coverage without stretching their finances. Enable you to choose.
With the increasing number of users opting for comprehensive protection, transparency in selecting the appropriate coverage is reflected in the ATS (Average Transaction Size).In fact, since its launch, PhonePe has seen many customers (especially first-time health insurance buyers) opt for the monthly payment option, especially from Tier 2 cities and beyond. Moreover, they are also opting for higher coverage and more features as the monthly component makes the plans more affordable.
Currently, while other monthly payment options are available to customers, it is only possible through a loan or credit card. However, the challenge with this is that it is limited to only those who have a good credit history and/or access to a credit card.
At PhonePe, our monthly payment offering provides better access to health insurance as it does not require additional financial commitments or credit checks, ensuring broad inclusivity and cost-effectiveness.This also shows that budget-friendly and customized health insurance can not only eliminate disparities but also empower everyone to have equal access to health services, regardless of their income and demographic status.
Finally, now is the time for substantial changes to be made across the industry to make insurance truly accessible to everyone. This will essentially be in line with IRDAI's vision of 'Insurance for All by 2047'.
Therefore, the need of the hour is to remove all barriers that may create reluctance among users to choose insurance coverage or make health coverage difficult for them to sell.
An innovative approach with tailored offerings and customer-friendly solutions will help bridge the insurance gap in India and thus create disruption in the digital insurance sector.We believe that PhonePe's differentiated features like delivery, user reliability, customer-centric approach and monthly subscription model blended with simple DIY trips will help strengthen insurance adoption and penetration in the country.
(Nilesh Aggarwal is Business Head, PhonePe Insurance Broking Services)
Health Insurance, an Expense or an Investment?
Health insurance in India has always been viewed as an upfront financial burden rather than a safety net to protect one's financial interests. While the average per capita income in India is around Rs 16,000 per month, the premium for a health insurance scheme, when payable annually, is around 30 per cent of a month's salary (assuming Rs 5,000 as premium), making a one-time It becomes difficult to make payments. ,
The Public Health Foundation of India report also paints a grim picture, estimating that such costs push 55 million Indians into poverty every year. This scenario reflects the growing need for a safety net and helps users understand that health insurance is no longer a luxury, but a vital tool to safeguard their financial future.Monthly premium plans are light on the pocket and help users meet their healthcare needs
Recognizing the need to increase the accessibility and affordability of insurance products across all income groups, PhonePe launched a first-of-its-kind monthly subscription for insurance premium payments with flexible payment options ranging from Rs 500 to Rs 3,000 per month.
This feature makes health insurance as easy as paying one's recurring monthly household bills instead of being burdened with an annual lump sum payment. It's also easy on your pocket, convenient to pay for, and really matches our core ideology!
Monthly premium payment plans can help expand the options available to health insurance category users, especially modern Indian consumers.
This innovation was driven by our deep understanding of the end consumers and the fact that smaller monthly payments help reduce the financial burden for them, while also empowering them and giving them the option of comprehensive insurance coverage without stretching their finances. Enable you to choose.
With the increasing number of users opting for comprehensive protection, transparency in selecting the appropriate coverage is reflected in the ATS (Average Transaction Size).In fact, since its launch, PhonePe has seen many customers (especially first-time health insurance buyers) opt for the monthly payment option, especially from Tier 2 cities and beyond. Moreover, they are also opting for higher coverage and more features as the monthly component makes the plans more affordable.
Currently, while other monthly payment options are available to customers, it is only possible through a loan or credit card. However, the challenge with this is that it is limited to only those who have a good credit history and/or access to a credit card.
At PhonePe, our monthly payment offering provides better access to health insurance as it does not require additional financial commitments or credit checks, ensuring broad inclusivity and cost-effectiveness.This also shows that budget-friendly and customized health insurance can not only eliminate disparities but also empower everyone to have equal access to health services, regardless of their income and demographic status.
Finally, now is the time for substantial changes to be made across the industry to make insurance truly accessible to everyone. This will essentially be in line with IRDAI's vision of 'Insurance for All by 2047'.
Therefore, the need of the hour is to remove all barriers that may create reluctance among users to choose insurance coverage or make health coverage difficult for them to sell.
An innovative approach with tailored offerings and customer-friendly solutions will help bridge the insurance gap in India and thus create disruption in the digital insurance sector.We believe that PhonePe's differentiated features like delivery, user reliability, customer-centric approach and monthly subscription model blended with simple DIY trips will help strengthen insurance adoption and penetration in the country.
(Nilesh Aggarwal is Business Head, PhonePe Insurance Broking Services)
