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Life Insurance

Life Insurance : Acko Life Insurance Company in India 2023

Secure Your Future and Your Loved Ones with Life Insurance. Learn about various Life policies, Tax Benefits & coverage options.

Life Insurance

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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.

How does life insurance work?
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Life insurance operates on a simple concept. 

Let's consider an example to better understand how life insurance works in India. 
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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.

Types of life insurance policies in India
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Here’s a list of different types of life insurance policies in India.

Term Life insurance
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Here, the policyholder pays a fixed premium for a specific term. If the policyholder does not survive this period, the insurer offers the death benefit to the assigned beneficiary. However, if the insured person survives the policy term, they do not receive any payout. This type of life insurance plan is the most straightforward and cost-effective option available.

Whole Life insurance
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Under this type of policy, the policyholder makes consistent premium payments throughout their lifetime in exchange for lifetime coverage. Upon the policyholder's passing, the designated beneficiary receives the death benefit as per the terms of the policy.

Endowment Plan
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This plan offers both savings and financial support. Throughout the policy tenure, the policyholder pays regular premiums. If the insured person survives the policy duration, the insurer pays a lump sum amount at the end of the term. However, if the policyholder passes away before the maturity date, the designated beneficiaries will receive the death benefit.

Unit-linked Insurance Plans (ULIPs)
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ULIPs provide a combination of investment opportunities and life insurance coverage. The policyholder's premium payments are allocated to different funds, which they can choose according to their investment goals and risk tolerance.

Pension Plan
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This type of policy focuses on the pension element. Throughout their working career, the insured pays regular premiums, and after retirement, the insurance company provides the policyholder with a consistent income. In the event of the policyholder's demise, either before or after retirement, the designated beneficiaries will receive the death benefit.

Return of Premium
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In this type of policy, premiums are refunded when the policy term ends. Thus, it comes with survival benefits and can be an inclusion in some other type of plan as well.

What is ACKO Flexi Life Plan?
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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.

Features of the ACKO Flexi Life Plan
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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.

ACKO Life Insurance Riders
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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.

Comparison of different Life Insurance Plans in India 2023
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Here’s a table designed to provide you with a snapshot of different Life Insurance Plans in India.


Term Plan

Whole Life Plan

Endowment Plan


Return of Premium

Pension Plan

Duration in years

5 to 85

Till the time you cross 100 years of age

5 to 35

10 to 20

5 to 65

Entire life

Availability of maturity benefit

Conditional upon the inclusion of Return of Premium option

Maturity on completing 100 years of age

When policy term ends

When policy term ends

Survival benefit

Income at periodic intervals till policyholder is alive

Benefits of a Life Insurance Policy
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Here are some prominent benefits of having a life insurance policy in India.


Financial protection for loved ones
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Life insurance offers financial security to the insured person's family in the event of the policyholder's death. This support can help cover outstanding debts, daily living expenses, children's education, and other financial obligations, ensuring that the family's financial well-being is protected.


Peace of mind
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Life is unpredictable, and uncertainties are part of life's journey. Having a life insurance policy gives policyholders peace of mind, knowing that their family will be taken care of financially even if they are not around to provide support. This sense of security allows individuals to focus on their daily lives and future goals without worrying about financial uncertainties.


Accumulation of savings
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Certain types of life insurance policies, such as Endowment Plans and Whole Life Insurance, come with a savings component. Over time, these policies build cash value, which can be leveraged through policy loans or withdrawals. This accumulated savings can be utilised to meet various financial needs, such as funding a child's higher education or planning for retirement.


Tax benefits
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Life insurance policies offer tax advantages, making them an attractive investment option. The premiums for life insurance policies are eligible for tax deductions. Additionally, the death benefit received by the beneficiaries is usually tax-free.


Supplementing retirement income
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Life insurance policies with a savings component can serve as an extra source of income during retirement. Depending upon the chosen policy, the accumulated cash value can be withdrawn or received as regular payouts to supplement retirement income, providing financial independence in the golden years.


Loan facility
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Many life insurance policies allow policyholders to avail loans against the cash value of the policy. This loan can be utilised during emergencies or to meet any financial requirements without surrendering the policy.


Business continuity
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Business owners can purchase a suitable life insurance policy to financially protect their companies from financial losses in the event of the death of a key employee or business partner.


Financial legacy
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Life insurance allows individuals to create an inheritance for their heirs and leave a financial legacy for the family’s future.

Why is buying life insurance a good idea?
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Apart from the benefits stated in the previous section, here’s why buying life insurance is a good idea.


Dealing with outstanding debts
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If you have significant debts, such as a home loan, car loan, or personal loans, the death benefit received by your beneficiaries can be used to pay off these debts, preventing them from inheriting financial liabilities.


Protecting your family's future
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Life insurance is a tool to protect your family's future financial goals and aspirations. Whether it's funding your children's education or ensuring a comfortable retirement for your spouse, a life insurance policy provides a way to secure your family's long-term financial well-being.


Affordable and accessible
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Life insurance policies come in various types and coverage amounts, making them affordable and accessible to people from all walks of life.


Locking in lower premiums
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Purchasing life insurance early in life allows you to lock in lower premiums. Premiums tend to increase with age and health conditions, so buying a policy when you are young and healthy can save you money in the long run.

Factors that affect Life Insurance premium
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Let's explore the most significant elements that impact the cost of life insurance in India.

Investment Return Calculator (Power of Compounding)
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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.

Using the Investment Return Calculator
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Life Insurance Policies that offer compounding benefits
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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.

Calculate Term Insurance premium
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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. 

Step 1: Determine your coverage needs.
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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.

Step 2: Use online premium calculators.
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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.

Step 3: Compare different plans.
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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.

How to buy the best Life Insurance Policy online from ACKO
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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.

FAQs for Life insurance
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Here are some common questions about Life Insurance plans.


Can I purchase a Life Insurance policy online?

Yes, a lot of insurance providers offer life insurance coverage online. From the convenience of your home, you can compare policies, determine rates, and purchase policies online.

What does a Life Insurance policy rider mean?

You can add a rider to increase your Life Insurance policy’s coverage. Riders offer extra benefits such as Critical Illness coverage, Disability coverage, Accidental Death compensation, and Premium Waivers.

Is my Life Insurance policy a good collateral for a loan?

Yes, several types of Life Insurance plans, including Whole Life and Endowment Policies, let policyholders borrow a loan against them. The loan amount is typically limited to a portion of the policy payout and has an interest charge.

What is the minimum age to buy a life insurance policy in India?

The minimum age to buy a life insurance policy in India is 18 years.

Can a person have multiple life insurance policies in India?

Yes, a person can have multiple life insurance policies in India, subject to the insurer's terms and conditions.

Are there any tax benefits of buying a life insurance policy in India?

Yes, premiums paid towards life insurance policies are eligible for tax benefits under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh.

Is it mandatory to undergo a medical examination before buying a life insurance policy in India?

It depends on the age and sum assured of the policy. For higher sum assured or older age, a medical examination may be required.

Can a person buy a life insurance policy online in India?

Yes, many life insurance companies in India offer the option to buy policies online through their websites or mobile apps.

Here are some common questions about Life Insurance Plans in India.

Is life insurance worth buying?

Yes, life insurance is worth considering in India. It provides a safety net for your family, replaces your income, and helps achieve future goals. Premiums are affordable, and there are tax benefits too. It's an investment in your family's security and peace of mind.

How much life insurance cover do I need?

To determine your life insurance coverage, consider your family's daily expenses, outstanding debts, future goals, income replacement, and potential medical/funeral costs. Add these up for a good estimate of the sum assured you need to set while buying the policy.

What is a life insurance premium?

A life insurance premium is the money you pay regularly to your insurance company. It's like a safeguard for your family. If something happens to you, they get financial help.

Do’s and don’t of life insurance policies

Here are a few things that you should and should not do during your life insurance journey,


  1. Assess Needs: Understand your financial goals.

  2. Compare Plans: Research before choosing.

  3. Know Policy Details: Read and ask questions.

  4. Choose Right Type: Match policy to your goals.

  5. Honest Information: Truthful health and habits.

  6. Pay Premiums On Time: Avoid lapses.

  7. Nominate Beneficiary: Ensure smooth claims.

  8. Review Regularly: Update as life changes.


  1. Avoid Unnecessary Riders: Choose relevant ones.

  2. No False Information: Be truthful.

  3. Not Just for Tax: Focus on coverage.

  4. Avoid Over-Insuring: Get needed coverage.

  5. Think Before Cancel: Consider implications.

  6. Update Nomination: Reflect life changes.

  7. Renew Timely: Prevent policy lapse.

  8. Supplement Employer's Cover: Get personal policy too.

Keep these tips in mind when navigating life insurance options in India.

Why is buying life insurance important?

Life insurance is super important in India. It's like a safety cushion for your family. If something happens to you, they get money to help with expenses and future plans. It's a way of showing love and responsibility. Plus, it can give you tax benefits. Stay smart, get life insurance!

Is life insurance benefit paid in a lump sum?

Yes, in India, life insurance benefits are usually paid as a lump sum amount. This means your loved ones receive a single, larger payment all at once, providing them financial support when needed most.

What will happen if my life insurance nominee dies before me?

In an unfortunate event where your life insurance nominee passes away before you, you need to appoint another nominee. You can easily update your nominee by contacting your insurance company. They'll guide you through the process so that your family is financially protected against the worst.

Life insurance and critical illness cover, do I need both?

When it comes to life insurance and critical illness cover in India, think of them as different types of protection.

  • Life insurance helps secure your family's financial future if something happens to you. It gives them a payout to cover expenses.

  • Critical illness cover, on the other hand, offers a lump sum if you're diagnosed with a major illness. It helps you manage medical costs and recovery.

Having both adds extra security, like having two safety nets. It's a personal choice based on your needs and peace of mind. Chat with a financial advisor to decide what's best for you!

What is the maximum age for life insurance?

In India, most life insurance companies offer policies up to around 70-80 years old. It's smart to consider it sooner for better rates. 

How many life insurance policies can a person buy?

In India, there's no specific limit to how many life insurance policies you can buy. It's up to you and what you need. Just remember, while it's okay to have more than one policy, it's important to choose wisely and consider your budget. If you're unsure, it's a good idea to talk to a financial advisor for guidance. 

How to file a life insurance claim?

Here's a quick guide on how to file a life insurance claim in India:

  • Collect Documents: Gather the policy document, death certificate, and ID proofs.

  • Notify Insurer: Inform the insurance company about the policyholder's passing.

  • Get Forms: Obtain claim forms from the company, or download them from their website.

  • Complete Forms: Fill the forms accurately, including nominee details.

  • Attach Documents: Submit the forms with death certificate and ID proofs.

  • Review Process: The company will review the claim and documents.

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.

Discover what the media is saying about Acko Life Insurance
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India gets 2 more life insurance players; IRDAI awards licences after a gap of 12 years
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