Bite-Sized Health Insurance Policies Best Choice for Small, Temporary Requirements

Small seems to be a big deal in the insurance industry. With several digital channels, many health insurers are rolling out life and non-life covers at very fewer premiums. Apollo Munich and Bajaj Alllianz are offering various other covers through Toffee Insurance, which is an intermediary that focuses on sachet covers. It includes Dengue insurance, mosquito insurance and fitness insurance. Max Bupa has tied up with Mobiwik to provide cover for the vector-borne diseases.

The insurers find it easy to place such products in the market through digital platforms which are visited often by the youngsters. The digital process does not ask for a proposal form or medical tests and offers major convenience instead.

The MD and CEO of Edelweiss Tokio Life, Sumit Rai shared that “Bite-sized insurance gives a simple one-click solution to young customers. More importantly, this model helps younger customers get accustomed to the concept of life insurance”.

The key benefit of these products is the nominal premium amount that they charge. For example, the vector-borne diseases cover offered by Max Bupa costs Rs. 49, Chola MS’ accident cover is of Rs. 20, Max Bupa’s Hospital Cash cover comes at an annual premium of Rs. 135.

Such products neither have a huge hole in your pocket nor come with any adverse long-term implication. But you must not treat these products as substitutes for comprehensive health or life insurance covers as they will not fulfil all your health and life insurance needs. For example, vector-borne diseases cover will not offer you cover to undergo surgery, whereas a comprehensive health insurance will do. Thus, these sachet policies should not be banked upon for complete health insurance needs. One should consider buying them only on already having a significant life, health and personal accident covers.