Often we hear that bigger is better. But, with the changing lifestyle, now the attitude is also changing. This is the reason that if it is smaller in the changing trend then it is better that the policy is more fit. There is a reason behind this as well. In fact, the emphasis on small is increasing in the insurance segment. Many insurance companies and intermediaries have launched low premium covers. This type of cover is also called Bite-Sized Insurance.
What is bite-size insurance? (What is Bite-Sized Insurance)
The low cost insurance for certain needs is called bite-size insurance. These include insurance for needs like mobile phones, gym sessions, airline tickets. The demand for bite-size insurance has also increased.
Affordable premium, easy to buy
E-wallets like PhonePe and Paytm are selling bite-size insurance. Their large volume allows customers to get these insurances at a low price. WhatsApp has also announced to sell such a policy in partnership with SBI General Insurance Company. Gunjan Ghai, Vice-President and Insurance Head, PhonePe, says, most insurance companies prefer to sell insurance face-to-face. But, due to Kovid, the demand for such small health insurance products has increased. Young people are also looking at other options to buy insurance.
A coronavirus policy with a cover of Rs 50,000 is available on PhonePe for Rs 396. There are also some policies on the app, under which cash facility will be available on hospitalization.
Insurance companies are seeing huge opportunities in these bite-sized policies and this is the reason why innovation avenues are open here. Companies can also sell them on rental portals to increase home insurance. Professionals like doctors, CAs and actors also take debit and credit cards as well as small value indemnity cover i.e. security cover in case of any loss.
Should you take this?
There is an increasing trend of millennials towards small-sized insurance policies, who want to get cover but are eschewing traditional policies. These byte size plans help them understand the concept before buying a bigger plan. According to Ghai, the youth’s inclination towards bite size policies shows that they know the need of insurance and want to understand it. With this trend, people will start making choices on the basis of age and experience in insurance. Ghai further says that people can gradually take several small covers and later buy one policy with all the services.