Securing your family’s future is a primary concern for almost everyone, especially in today’s fast-paced world. In this scenario, only an appropriate term insurance plan can be the smartest financial decision that you can take. A ₹25 lakh term insurance plan is a popular choice among many people seeking affordable coverage. Let’s explore how this coverage works and why you should choose a ₹25 lakh term insurance policy.
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The sum assured in term insurance is the guaranteed amount your insurer pays to your nominee if you pass away during the policy term. It acts as a lifesaver for your families, providing immediate financial security in your absence. So, what is ₹25 Lakh Term Insurance?
A ₹25 lakh term insurance plan offers simple and affordable protection. It’s a practical coverage option for anyone who wants to protect their family’s financial needs without spending too much on premiums. Some of the key reasons to choose a ₹25 lakh term plan include:
Term insurance premiums for a ₹25 lakh coverage term plan are relatively low. Naturally, you can afford this even if your income is not high.
This coverage amount of ₹25 lakh provides essential protection if you have limited financial responsibilities or short-term goals.
You can use this term policy with a sum assured of ₹25 lakh to supplement your existing employer-provided insurance.
This affordable term plan, with a sum assured of ₹25 lakh, will give you peace of mind by ensuring your loved ones won’t face sudden financial stress if something unexpected happens.
The right life cover amount isn’t the same for everyone. It depends on your income, lifestyle, family size, and long-term financial goals.
It is always wise to choose a sum assured that is about 10-15 times your annual income. For instance:
Experts also recommend choosing 15-20 times your annual income if you have dependents, outstanding loans, or major future expenses, such as children’s education or home EMIs. You can use ACKO’s online calculator to estimate the right coverage and premiums.
Here are the benefits of choosing ACKO term insurance with ₹ 25 lakh coverage:
₹25 lakhs sum assured can help your family manage daily living expenses if you are no longer there to support them.
Buying a plan with ACKO is a fully digital process. You can check premiums, upload documents, and complete KYC without visiting the office.
Premiums for a ₹25 lakh policy start as low as a few hundred rupees per month, depending on your age and health conditions.
ACKO’s policy terms and conditions, including the exclusions, are well explained.
You can choose the payment terms, duration, and other criteria, including accidental death benefits.
You can get your policy approved online with minimal paperwork after verification is complete.
ACKO’s claim service prioritises customer convenience, ensuring timely payouts.
You can claim a deduction of up to ₹1.5 lakh annually for the premium paid under Section 80C. Also, under Section 10(10D), the claim amount going to your nominee is tax-free.
Suppose a 28-year-old computer engineer earns ₹3.5 lakhs per year. He is married, supports his wife and parents, and wants to ensure their well-being in case anything were to happen to him. He has an ACKO Term Insurance policy with a ₹25-lakh sum assured for a 20-year term.
In the event of his unfortunate demise, his loved ones will receive ₹ 25 lakhs as a lump sum.
The amount can cover daily expenses and small debts, and provide financial stability during a difficult time, for a very modest annual premium.
Before buying a ₹25 lakh sum assured, you must understand whether it’s worth your financial situation. So, consider these:
This coverage plan is ideal for individuals who:
Before purchasing a 25 Lakh Term Insurance plan, you must keep a few things in mind.
Ensure the sum assured meets your family’s immediate needs in the event of your demise.
Use your insurer’s (like ACKO) calculator and get a clear idea of the differences in coverage and premium before making any decision.
You can enhance your insurance benefits by adding riders such as critical illness, accidental death, and disability income. This comes at a very small cost.
Be transparent and disclose any pre-existing medical conditions when purchasing a plan. This will help avoid claim disputes later.
Reconsider your coverage every few years or after major life events such as marriage.
ACKO offers different term insurance options to match your family’s needs and budget. If ₹25 lakh isn’t enough, you can easily explore higher coverage plans to get the protection you need.
Buying a term insurance plan with a ₹25 lakh sum assured is a smart move if you are looking for affordable life protection. It offers a balance between manageable premiums and meaningful financial security. With ACKO Term Insurance, you get added advantages, as it is a fully digital platform that offers fast and hassle-free service.
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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