(ECNS) – Insurance companies in China have created online products that allow a buyer to invite friends to pitch in and raise their amount of insurance coverage.

However, crowdfunding for insurance has been accused of taking advantage of friendships to collect money.

One such service called "Love Upgrading" has been launched by Sunshine Insurance Company on WeChat, China's voice and text messaging app.

A buyer pays an initial premium of 100 yuan ($16) for one year of insurance with 50,000 yuan ($8,000) coverage. The buyer then shares the link on WeChat and invites friends to pitch in. Each contributor can raise the insurance amount by 2,500 yuan ($400) for a maximum of 100,000 yuan ($16,000) in 72 hours.

Similar insurance products include "Collecting Love," also launched on WeChat. For a premium of one yuan, a buyer can purchase one year of insurance and collect contributions from WeChat friends until a cap of 100,000 yuan ($16,000) is reached.

Crowdfunding is seen by Chinese authorities as illegal fundraising, and has been questioned by WeChat users for exploiting friendships.

"If a friend asks me to pitch in and I don't want to, I would worry about hurting his feelings," a WeChat user said.

Another user said she has to pitch in to appear on the "People who love you" list.

Others are concerned that if they don't pay they would be considered penny pinchers.

Insurance expert Zhu Qing said a 100 yuan premium for 50,000 yuan of insurance coverage isn't a big selling point compared with other insurance products. These crowdfunding products are more of a marketing stunt, Zhu added.

By Qian Ruisha