Life Insurance : Acko Life Insurance Company in India 2023

A life insurance policy is a contract-based promise established between the policyholder, who is the insured individual, and the insurer. Under this agreement, the policyholder is required to make periodic premium payments to the insurer. In return for these premiums, the insurer commits to providing a sum of money, known as the death benefit, to the beneficiary chosen by the policyholder, in case of the policyholder's demise.

The primary purpose of life insurance is to secure the financial well-being of the policyholder's family after their passing. This financial protection can be utilised to cover various expenses, such as paying for funeral costs, clearing loans, and other ongoing living expenses.

Life insurance policies come in different types, with Whole Life and Term Life being prominent options. In the case of Term Life insurance, coverage is provided for a predetermined term. If the insured person passes away during this period, the selected beneficiaries receive the death benefit. However, if the person survives beyond the term, no payout is made. On the other hand, Whole Life insurance offers a cover for the entire life of the insured person, and regular premiums are paid by the policyholder throughout their lifetime.

Life insurance operates on a simple concept. 

Meet Mr. Kumar, a 35-year-old married man with two young children. Concerned about the financial well-being of his family in case of his untimely demise, Mr. Kumar decided to go for a Term Life Insurance policy.

At ACKO, we understand that discussing life insurance can be a serious matter, but we're here to make it as easy and smooth as possible. Our Flexi Life Insurance Plan offers death benefits and the flexibility to customise the plan to suit your unique needs and preferences. Let's take a look at the details of ACKO Flexi Life Insurance Plan.

The features of a life insurance policy refer to the benefits you receive for buying the insurance policy. The ACKO Flexi Life Plan has the following features.

Death benefit The amount of death benefit your loved ones will receive, depends on the sum assured you choose while buying your ACKO Flexi Life Plan. As the name suggests, the death benefit will be paid when you face the most unfortunate event. This sum can help your family build a better and a financially stable future for themselves, without depending upon loans or asking for financial help from other people.

Flexi Coverage Benefit 

We understand that buying a life insurance policy is a long-term commitment. ACKO will be associated with you throughout major changes that happen in your life. We want you to get the best life insurance coverage in every situation of your life. Thus we have introduced the Flexi Coverage Benefit. Under this benefit, you have the option to change certain parameters of your life insurance plan. Here are the details.

Sum assured: You can increase or decrease the sum assured of this plan as per your requirement. For example, you get a promotion at work, and now you earn more. You can increase the sum assured of your plan as you can afford a higher premium for that added protection.

Policy term: As life progresses, you may realise that you need to either increase or decrease the policy duration of your life insurance plan. The Flexi Benefit helps you add a layer of customization to the policy duration.

Payment frequency: You can change the frequency of premium payments as per needs. We have four options: monthly, quarterly, half-yearly, and yearly. You can switch between these options as necessary by notifying us about the change.

Payout options: If you are in charge of how the claim amount will be disbursed to your nominee. You can choose between lump sum or monthly payments.

Will creation services

When you have a life insurance policy, it means you're thinking about your family's or beneficiaries' financial well-being after you're no longer around. This is where the will comes in handy. With ACKO Flexi Life Plan, we will help you create a will. We can help you with guidance on how to draft it, connect you with legal experts, or offer templates to make the process easier.

When you create a will with the help of these services, you can specify who should receive the proceeds from your life insurance policy. This ensures that your loved ones get the financial support you intended for them.

Life insurance riders are very helpful for enhancing the coverage of your insurance policy. At ACKO, we offer some of the most useful add-on riders that can help extend the scope of your life insurance plan. Here are the details.

Accidental Death Rider

An Accidental Death Rider is like an extra layer of protection you can add to your regular life insurance policy. It's like having a safety net for unexpected accidents. Here's how it works:

Life Insurance Policy without the Accidental Death Rider: Your regular life insurance policy pays out a sum of money to your family or beneficiaries if you pass away due to natural causes, like illness or old age.

Accidental Death Rider Benefit: Now, when you add the Accidental Death Rider to your policy, it means that if you were to meet with an accident and unfortunately lose your life because of it, your family would receive an additional amount of money on top of what your regular policy covers.

This extra money from the Accidental Death Rider can be really helpful for your family during a tough time. It can help them with immediate expenses, like medical bills or funeral costs, and it can also provide some financial support for the future, like paying off loans or helping with daily expenses.

Critical Illness Rider

If you get really sick with a specific serious illness (like cancer, heart disease, or stroke), the rider kicks in. It pays you a lump sum of money, kind of like a bonus, to help cover your medical bills and other expenses while you're fighting the illness.

Accidental Total Permanent Disability Rider

A basic life insurance policy pays if something happens to you. Here your family gets the death benefit to help them financially. But what if you also want to make sure you're covered if you have a terrible accident that leaves you permanently disabled and unable to work? That's where ACKO's Accidental Total Permanent Disability (ATPD) rider comes in. The ATPD rider is like an extra layer of protection you can add to your regular life insurance policy. It's like having a safety net for accidents. Let's break the Accidental Total Permanent Disability rider for better understanding.

Accidental: This part of the rider means that the disability must happen because of an accident, not an illness. So, if you're in a car crash or something similar, and it leaves you disabled, the ATPD rider kicks in.

Total Permanent Disability: This is the key part. "Total" means that your disability is so severe that you can't work anymore. "Permanent" means it's not something that will get better over time. It's long-lasting or forever. For example, if you lose a hand or become paralyzed due to the accident, that could be considered a total permanent disability. We do understand that discussing this is not the easiest thing. But being prepared for the worst is the only way of ensuring a financially stable future for your loved ones.

So, if you have the ATPD rider, and you meet these conditions because of an accident, you can make a claim. This money can be really helpful because you may need it for medical bills, rehabilitation, or just to cover your regular expenses since you can't work anymore.

Here’s a table designed to provide you with a snapshot of different Life Insurance Plans in India.

Let's explore the most significant elements that impact the cost of life insurance in India.

Compounding in life insurance refers to the accumulation of bonuses and returns on the policy's sum assured and any accumulated earnings from previous years. As these bonuses and returns are added back to the policy's value, they grow further and generate more returns in subsequent years.

Several life insurance policies in India come with compounding benefits to help policyholders maximise their returns. Some of the most popular options include the following.

The premium you pay for Term Insurance depends on several factors, including age, sum assured, policy term, health condition, and lifestyle habits. Accurately calculating the premium ensures that you get sufficient coverage without overburdening your finances.

Here’s an example explaining how to calculate Term Insurance premium. 

Meet Rahul, a 30-year-old software engineer, who is keen on securing his family's financial future with a Term Insurance plan. 

Rahul assesses his family's financial requirements, which include clearing outstanding loans, supporting his children's education, and ensuring a comfortable lifestyle for his family. After thorough consideration, he arrives at a sum assured of INR 2 Crore.

To get an estimated premium amount, Rahul uses an online premium calculator. He inputs his age (30 years), the sum assured (INR 2 Crore), and selects a policy term of 30 years. As Rahul leads a healthy lifestyle without any smoking or alcohol consumption, the calculator provides him with an estimated premium of INR 15,000 per year.

With the estimated premium in mind, Rahul begins comparing various term insurance plans offered by different insurers. He carefully reviews the features, additional riders, and customer reviews to shortlist the plans that align with his needs. After conducting thorough research, he narrows down the choices to a few promising policies, and purchases the most suitable one.

Here’s how you can buy the best life insurance policy that suits your requirements from ACKO via our seamless online process using our website/app.

Note that this is a generic process, and the exact steps can vary depending upon the chosen plan and other details.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.