Chinese third-party payment processor Alipay launched a form of love insurance today, underwritten by Beijing-based Answern Property Insurance. When taking out a policy, users must indicate the name of their significant other, and can choose to pay one of three one-time premiums: RMB 99, RMB 297, or RMB 495. If the user gets married any time in the 3-year period after taking out the policy, or, at any time, ends up marrying someone other than the specified significant other, then the policy is nullified. However, if the user marries the specified significant other any time between 3 and 13 years after taking out the policy, she or he can use the policy to receive a payout of RMB 1,999, RMB 5,997, or RMB 9,995 (corresponding to the three premiums noted above) by simply presenting a copy of the marriage certificate to the insurer. Thousands of policies have already been sold.
Based on the RMB 1,999 payout for the RMB 99 policy, it can be calculated that the insurance company expects fewer than 5% of couples to successfully marry in the prescribed time frame.
Alipay is operated by Ant Financial, the financial services affiliate of Chinese e-commerce conglomerate Alibaba Group (NYSE: BABA).