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Coverfox Launches Term Life Insurance on its Portal with First-of-its-kind Nominee Assistance Program | ||
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Sep 20, 2017 16:36 IST
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Chennai, Tamil Nadu, India
After tremendous success in the car and bike insurance segments, Coverfox.com, India’s fastest growing online insurance platform today 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% of the respondents were aware of term insurance benefits; 42% of respondents stated complexity of plans and lack of time as reasons fornot 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.
“We have been talking to people and have realized that they find the whole process of choosing amongst the current available term insurance options very confusing. 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% 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 wantsis an affordable cover against early death. No wonder less than 25,000 customers, in such a large population sign up for term insurance every month. 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,” explains 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% 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. We have built a very unique user experience, and pruned the extra options, to reduce confusion. 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. The insights collected from these interactions will also feed into our continuous effort to make the process of insurance buying simple, customer-centric and, as much as possible, unassisted,” says 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, has 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.
[1]According to Swiss Re’s Mortality Protect Gap report for 2015, India’s mortality protection gap is as much as 92%, which implies that savings and insurance fulfill less than 10% 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.
About Coverfox.com Coverfox.com is India's fastest growing online insurance platform where you can compare, buy and manage your insurance policies. The portal helps bring transparency, simplicity and ease to the process of buying and managing insurance in India. Using its proprietary technology and algorithm based platform, users can compare and choose from a range of plans across top insurance companies, understand key features and buy policies instantly and safely. Once bought, it handholds and helps them through the tedious claims process. Coverfox currently offers health, car, bike and travel insurance policies.
Coverfox is run by Glitterbug Technologies, a tech company which has received Series A& B funding from global funds such as SAIF partners, Accel and Narayan Murthy’s Catamaran Ventures.
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