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Point-of-sale (PoS) insurance is a simple insurance product whose benefits are predefined and disclosed at the time of sale. Its proposal form is easy to fill, and the policy is issued quickly.
Earlier, insurance regulator IRDAI allowed only motor, travel and personal accident cover to be sold under PoS schemes. Last year, however, it expanded the list, permitting pure-term insurance plans with/without return of premium, non-participating endowment plans that state the fixed benefits upfront, and immediate annuity products, to be sold as PoSproducts.
For instance, Edelweiss Tokio Life’s PoS Saral Nivesh, one of the earliest PoS products to be launched, is an endowment plan. The product is simple to understand, with guaranteed benefits that are stated upfront. Entry is allowed till the age of 50 years with a maximum sum assured of ₹10 lakh. The maximum term offered is 20 years, but the maximum maturity age is 65 years. For a male of 35 years, a cover for ₹5 lakh (premium payment term - 10 years; policy term - 20 years) will cost ₹24,917 annually.
On surviving the policy term, he will get the sum assured under the plan. Recently, IRDAI also allowed micro-insurance products (sum assured of less than ₹50,000) to be sold through PoS.
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