Bite-Sized Life Insurance: India’s Ace up the Sleeve for Financial Security

By Mayank Ravi

Let’s start with the story of Suresh.

Suresh, a young father of two, is a delivery boy in Hyderabad. Every month, he sends a good chunk of his income to his family in his native village in Telangana. The promise of a good education and better career prospects has brought his family to the city.

Every day, Suresh drops his daughter to school before he goes to work, while his wife stays home to tend to their toddler son. She has her dreams too—to start a tailoring shop—but they have to wait until their son starts going to school. For now, they will have to live on Suresh’s income.

Despite the backbreaking schedule that leaves Suresh tired and sleepy, a lingering thought keeps him up at night: What if I am unable to come back home one night? Every hour, 19 people die in road accidents . What if he is next?

I may have made up Suresh and his family, but his dreams and fears are very real. One would say, Suresh should get life insurance. Unfortunately, millions of people like Suresh have never had access to life insurance or any form of financial security. Now, with the rise in UPI and growing internet penetration , these invisible but crucial sections of society are finally gaining some visibility on the financial radar.

At Bandhan Life , thanks to digital underwriting and facial analytics , verifying an applicant’s identity, income, and health status has become a cakewalk for us, with a short and simple buying journey. With zero paperwork, people like Suresh now have access to life insurance. Now, the question remains: how can we create tailor-made products that are easy on the pocket and can serve the life insurance needs of this huge swathe of the uninsured population?

The answer is one bite at a time.

Bite-Sized Insurance, the Way Forward

Bite-sized insurance products, aka micro-insurance or sachet insurance, are essentially mini-insurance plans. Imagine them as single-serving packets compared to the full-course meals of traditional insurance policies. Instead of a big umbrella that covers everything (traditional plan), you get a raincoat for a specific event (bite-sized plan).

Bite-sized life insurance products, with their small ticket sizes and tailored coverage options, emerge as crucial tools in extending financial security to a broader segment of the population, particularly for those from economically weaker sections. Here’s why and how these products are not just beneficial but essential for India.

Bridging the Insurance Gap with Accessibility

India has a vast and diverse population with varying financial capabilities and awareness levels about insurance. Traditional insurance policies often come with higher premiums and complex terms that can be daunting for many, particularly in lower-income groups. Bite-sized insurance, with its low-cost and specific coverage, demystifies insurance for the common man. Offering affordable premiums and straightforward benefits ensures that more Indians can enjoy the security it provides.

The Scalability of Bite-Sized Insurance

One key advantage of bite-sized life insurance is its scalability and versatility. These products can be easily distributed through digital platforms, such as insurtechs, travel portals, healthtechs, edutechs, fintechs, and e-commerce companies. With the rise of mobile technology, insurance is just a few clicks away for most consumers, including those in remote areas.

This ease of access, combined with the ability to tailor coverage to individual needs, allows bite-sized insurance to meet the specific demands of different consumer segments, effectively bridging the life insurance gap in the country. For instance, Bandhan Life’s Akhil Bharat Term Plan offers a policy with premiums as low as ?6 a day and life cover of ?5 lakh within minutes. Get in touch with us to know more !

Promoting Financial Inclusion and Security

For people from economically weaker sections, bite-sized life insurance serves as an invaluable entry point. It allows them to make a beginning towards building a future that is financially secure, giving wings to their dreams. By introducing more people to the benefits of insurance through small, manageable policies, we can create a new ‘Bandhan’—between a new emerging India and life insurance.

This is crucial in a country where a large segment of the population has historically been uninsured and underinsured.

Wrapping it Up

The potential of bite-sized insurance in India is immense. As we aim to build a more financially secure and resilient society, these products are not just optional; they are essential. They offer an entry point into the world of insurance, providing millions with the opportunity to protect themselves and their families against unforeseen events. With Bandhan Life’s commitment to providing inclusive and accessible life insurance solutions, we are dedicated to ensuring that every individual has the opportunity to secure their future, irrespective of their economic standing.

At Bandhan Life, we understand the unique challenges and opportunities in the Indian insurance market. Through continuous innovation and a deep commitment to our customers, we strive to give wings to the dreams of millions, making insurance an integral part of their lives. Join us in spreading the benefits of bite-sized insurance. Partner with us to build a more secure future for every Indian.