Aegon Life, a digital life insurance company, has partnered Ahalia Finforex, a Kerala-based diversified financial services firm, to provide life insurance access to the unorganized and unserved segments residing in tier 2, tier 3, and tier 4 towns.
The partnership between Aegon Life and Ahalia Finforex provides insurance coverage to customers of the latter via the insurer’s Group Credit Life product. In the event of the borrower’s death, insurance from Aegon Life covers the loan amount.
According to the press release, the Group Credit Life Insurance cover is attached to a lending product like a loan. It safeguards the interests of the borrower’s family, helps avoid a debt burden while protecting the lender from an unpaid loan. The product can be purchased offline, via branches of Ahalia Finforex.
Customers can obtain this product with a one-time premium, as per the release from the firm.
Satishwar Balakrishnan, MD, and CEO of Aegon Life, said, “Through this partnership, Ahalia’s customers in Kerala can access financial protection when taking a loan, ensuring that the borrower’s demise does not bankrupt the entire household. Through Aegon Life’s partner strategy, we will onboard 100 partners in 2022, and this makes us uniquely suited to solve the protection gap for under-penetrated customer segments.”
According to N. Bhuvanendran, managing director of Ahalia Finforex, “Across our 60+ branches in Kerala, we see an inflow of customers who are not fully aware of the need for insurance and the protection such products offer to the unorganized sector. With this partnership, we will cater to the unserved populace in small towns, helping them access insurance cover against the loans, which could weigh on them in the untimely demise of the borrower. We believe there is a real need for such innovative solutions.”
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