It’s great to stay positive, but being prepared never hurts. Life doesn’t always go as planned, and that’s where life insurance comes in. A life insurance plan can offer financial support. It gives your family the money they need if you’re not around anymore. Here’s how it works.
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Life Insurance
Life insurance is a contract between a policyholder and an insurance company. When you have a life insurance plan, you pay your insurance company a fixed premium regularly to keep the plan active. If something happens to you and you're no longer around, your insurer will give a large sum of money to your family or a chosen nominee. This helps them manage daily expenses and stay financially secure during a difficult time.
Now, you might wonder, is life insurance only about what happens after death? Many people assume so. But in reality, life insurance isn’t one-size-fits-all. People buy it to meet different goals. It could be to:
Based on your financial goals, here’s how you can look at life insurance:
Term Insurance plans offer a large life cover at affordable premiums. In your absence, the benefit can cover daily living costs, loans, or any bills. This way, your loved ones are protected from financial burdens when you're no longer around.
These plans help you create a retirement fund. They also provide regular income after you stop working. This helps you stay financially independent.
These plans help you build a financial corpus while keeping your life covered. They are good for long-term savings and financial discipline.
These plans are designed to help you save for your child’s education or marriage. They will continue even if you pass away. This means your child’s dreams can still come true.
To buy life insurance, you must understand how these plans function. Thorough knowledge will help you in making informed decisions. So, let's explore different policies to determine which one works best for you.
| Term Plans | Life cover for a fixed time. Payout (money) goes to family if you pass away |
| Whole Life Insurance Plans | Financial protection for a lifetime till the age of 99 |
| Unit-linked Insurance Plans (ULIPs) | Life cover plus investment options with a lock-in period of 5 years |
| Endowment Insurance Plans | Life cover plus guaranteed returns at the end of the policy term |
| Pension Plans/ Retirement Plans | Life cover plus post-retirement incomes |
| Term Plan with Return of Premium (TROP) | Life cover + money back if you stay alive till the end |
| Child Insurance Plans | Life cover + savings for your child’s future |
Term insurance is the most basic and affordable type of life insurance. It offers pure financial protection with no savings or returns. It’s a straightforward way to make sure your loved ones are financially protected.
Here’s how a term insurance plan works:
Term insurance replaces your income for your dependents if you’re not there. It covers family expenses like loans (personal, home, education), kids' education, daily needs, and lifestyle costs (travel, car, etc.). Since term insurance replaces income, it’s smart to keep the plan active until retirement age.
Many term insurance plans provide extra coverage with riders. These include benefits for accidental death, total permanent disability, and critical illness. These riders add an extra layer of financial protection on top of the sum assured provided by the term plan.
A simple example of a Term Insurance plan: Ravi, a 35-year-old IT professional, buys a 30-year term insurance policy with a sum assured of ₹1 crore. He pays an annual premium of ₹10,000. If Ravi passes away during the policy term, his wife and children will receive ₹1 crore as a death benefit. However, if he survives the 30-year term, he does not receive any maturity benefit.
A Whole Life Insurance plan, or permanent life insurance, offers lifelong coverage. The plan lasts until the policyholder reaches 99 or 100 years.
With this policy, the policyholder (insured) pays premiums regularly for lifetime coverage. When they pass away, the named nominee gets the death benefit as per the policy terms. However, if the insured lives beyond the maturity age, i.e. 100 years, the insurer pays the maturity payout to them.
A simple example of a Whole Life Insurance plan: Meera, a 40-year-old business owner, buys a whole life insurance policy. This policy will cover her until she turns 100. She pays regular premiums throughout her life. If she passes away at 85, her nominee (her daughter) receives the sum assured of ₹50 lakh. If she reaches 100, she receives an endowment payout.
ULIPs give more than one benefit. They are long-term investment plans with a lock-in period of 5 years. They have a feature that divides a policyholder's premiums into two parts.
Overall, ULIPs provide many life insurance benefits. These include flexibility, market-linked returns, fund-switching, partial withdrawals, and death benefits. However, it's important to understand each factor well to make informed choices.
A simple example of a Unit-linked Insurance Plan (ULIP): Priya, a 28-year-old marketing professional, buys a ULIP with an annual premium of ₹1 lakh. The insurer invests her premiums in a mix of equity and debt funds. Over 10 years, the market grows, and her investment accumulates to ₹15 lakh. If she passes away during this period, her nominee receives either the fund value or the sum assured, whichever is higher.
Endowment Plans are useful for those who need life coverage and fixed returns.
An endowment plan is designed to provide life cover and help build savings habits over time.
A simple example of an Endowment plan: Anil, a 32-year-old engineer, buys a 20-year endowment plan with a sum assured of ₹20 lakh. He pays ₹50,000 annually. If he survives the policy term, he will receive ₹20 lakh plus any bonuses declared by the insurer. If he passes away before maturity, his family will receive the sum assured of ₹20 lakh.
Pension plans are considered to be long-term investment plans that provide financial protection as well as post-retirement incomes. With a pension plan, the policyholder pays regular premiums, and after retirement, the insurer provides the insured with a consistent income. The designated beneficiaries will receive the death benefit in the event of the policyholder's demise, either before or after retirement.
A simple example of a Pension plan: Suresh, a 45-year-old government employee, buys a retirement plan and pays ₹1 lakh annually for 15 years. After he retires at 60, the insurer starts giving him a regular pension of ₹50,000 per month. If he passes away, his spouse continues to receive the pension or gets a lump sum payout.
A Term Plan with Return of Premium, or TROP, is a type of term life insurance policy. It pays a death benefit and refunds all the premiums if the policyholder lives through the term. TROP works like a regular term plan, but it has one key difference: it returns the premiums paid at maturity.
With TROP, the policyholder can choose how often to pay premiums. They can pay monthly, quarterly, half-yearly, annually, or in a single payment. It is often considered one of the ideal options for many who want life cover as well as guaranteed returns.
A simple example of a Term Plan with Return of Premium (TROP plan): Rajesh, a 30-year-old banker, buys a TROP policy for 25 years with a sum assured of ₹50 lakh. He pays ₹20,000 annually. If he passes away during the policy term, his family gets ₹50 lakh as a death benefit. If he survives, he gets back the total premiums paid (i.e., ₹20,000 × 25 = ₹5 lakh).
Parenting involves several responsibilities, including ensuring financial protection for children.
Child insurance plans are a smart financial solution that help parents save for their child’s future. In most child insurance plans, the parent is the one covered by the plan, not the child. The parent (policyholder) pays premiums so their child receives financial protection.
If something happens to the parent, the plan may waive future premiums (which means it stops asking for future payments) but still give the promised money (called the maturity benefit) when the term ends.
A simple example of a Child Insurance Plan:
Scenario 1
Sunita is a 35-year-old mother. She buys a child insurance plan for her 5-year-old son. The plan has a maturity benefit of ₹25 lakh when he turns 18. She pays ₹30,000 annually for 13 years. When her son turns 18, he receives the full sum assured of ₹25 lakh, as promised under the policy.
Scenario 2
In the unfortunate event of her passing during the policy term, the insurer will waive all future premiums. Her son will still receive ₹25 lakh when he turns 18. This highlights the importance of ensuring your child plan includes a premium waiver benefit, a key feature that safeguards your child’s future, no matter what happens.
| Parameter | Term Insurance | Whole Life Insurance | ULIPs | Endowment Plans | Retirement Plans | TROP |
| Overview | Fixed-term cover | Lifetime cover | Cover + invest | Cover + returns | Post-retire income | Term + premium back |
| Best For | Family protection | Lifelong cover | Growth + cover | Safe savings | Retirement | Cover + refund |
| Death Benefit(To policyholder) | Life Cover | Life Cover | Sum Assured | Sum Assured | As per plan | Life Cover |
| Returns | None | Guaranteed | Market-linked | Guaranteed | Varies | Premium refund |
| Maturity (To nominee) | No | At 100 yrs | End of term | End of term | Regular payouts | On survival |
| Affordability | Lowest | High | Medium–High | Medium | High | Medium–High |
| Tax Benefits | Yes (80C) | Yes (80C) | Yes (80C & 10(10D) | Yes (80C & 10(10D) | Yes (80C) | Yes (80C) |
| Flexibility | High (Riders, cover options) | Low | Medium (Fund switch) | Low | Low | Low |
| Policy Term (Duration) | 5-85 yrs | To age 100 | 10-20 yrs | 5-35 yrs | Whole life | 5-65 yrs |
If you have someone who relies on you financially, you must consider life insurance. Whether you’re single, married, a parent, or a business owner, life insurance helps. It makes sure your loved ones won’t face financial issues if something happens to you.
Here's who stands to gain the most from life insurance:
If you have kids, make sure they are financially secure, even when you’re not there. A life insurance payout can cover educational expenses, living expenses, and future goals.
Let's look at a simple example: Rajesh, 38, is planning for his daughter Aanya's further studies. If something unexpected happens to him, Aanya can claim ₹1 crore. This helps her study abroad without worrying about money.
If your family or spouse depends on your income for bills, rent, or a mortgage, life insurance can prevent financial hardship if you pass away unexpectedly.
Let's look at a simple example: Priya and Arjun have recently purchased a flat in Mumbai with a ₹75 lakh home loan. If Arjun dies unexpectedly, his life insurance will help Priya. She won't have to worry about the loan or losing their home.
Insuring early translates into lower premiums and lifelong protection. Also, some policies allow you to save and invest while being protected.
Let's look at a simple example: Let's look at a simple Rohan, who is 25 years old, buys a whole life insurance plan. It offers ₹1 crore cover, and he pays only ₹800 each month. Ten years go by, and he marries and has a family. His policy gives him financial protection. It also builds savings for his child's future.
Your company is your legacy. Life insurance protects your loved ones, employees, and business partners from sudden financial stress.
Let's look at a simple example: Sneha, age 42, runs a successful bakery in Bangalore. She buys an online life insurance policy. This way, if she passes away unexpectedly, her family will have money. They can use it to pay salaries, settle business loans, and keep the bakery running without stress.
Life insurance can secure your loved ones' finances. It helps pay for end-of-life costs, medical bills, and estate planning. It also protects inheritances.
Let's look at a simple example: Dinesh, 65, wishes to leave ₹50 lakh for his grandchildren and pay for any medical needs in his old age. His life insurance policy ensures that his family won’t face end-of-life costs and secures their future.
The ACKO Life Flexi Term Plan is a unique life insurance option that adapts to your evolving lifestyle.
By choosing a comprehensive term plan like the ACKO Life Flexi Term Plan, you are making a significant move toward safeguarding your family’s financial future. A well-thought-out term insurance plan ensures that your loved ones remain financially secure, even in unforeseen circumstances.
Here are 6 reasons to choose the ACKO Life Flexi Term Plan:
The coverage amount needed to protect your financial dependents can change over time. This may happen as your number of dependents grows (e.g., having children), as you take on new financial responsibilities (e.g., home, personal, or education loans), or as your lifestyle evolves with changes in income (e.g., a promotion or career growth).
Increase or decrease as your financial dependents, loans, lifestyle, and income change.
Have complete control over how the sum assured will be paid to your nominee (monthly or one-time full payment).
We will help you create a will to outline which assets go where clearly.
The premiums are wallet-friendly. They provide great coverage, helping you stay protected while also saving on taxes.
Being digital-first means you can easily buy or make claims on your term insurance policy with us.
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ACKO Life Flexi Term Plan stands out in the market due to several key differentiators. Below is a comparison of the unique features of ACKO’s plan versus traditional market offerings
| Parameters | ACKO Life Flexi Term Plan | Traditional Plans |
| Claim Settlement Ratio | 99.38% | Varies from 98-99% |
| Policy Adjustments | Instant changes via app ⏱️ | Depends on the medium ( offline and online ) |
| Increasing Cover Option | Yes. No restrictions* | Restricted to life big events such as marriage, welcoming a child, etc. |
| Cost Savings | Up to 40% savings* | Costs grow over time 📉 |
| Future Premium Hikes | Age wise premiums remain the same 🚫💸 | Age wise Inflation adjusted premium |
| Customisability | Flexible coverage/term | Rigid, limited options 🧱 |
| Riders | Offers valuable riders to enhance protection | Riders may be provided depending on the plans |
| Length of Claim Form | Easy, digital, and short | Moderately long/Very long/Not available online |
| Option to Exit the Plan | Yes* | Approx. 80% of insurers provide |
| Digital Experience | Fully online, app-based 📱 | Often requires offline processes, paperwork, or branch visits |
| End-to-end Digital Support | Yes | Depends on the insurer |
| Home Pickup of Claims | Yes, ACKO team will personally collect the documents | Roughly 20% of insurers provide |
| Free Will Creation | Yes | No, Generally does not offer integrated will creation services |
This example demonstrates how ACKO Life Flexi Term Plan adapts to individuals' changing life circumstances.
Rahul, who earns 10 lakhs annually, married at 30 and purchased a ₹1 crore coverage (20-year term) ACKO Flexi Term Life Plan for his wife, Rina.
At 35, with two kids (Nirvana and Kabir) and a 50 lakh home loan, he increased the coverage to ₹3 Crore as his responsibilities increased.
By 45, after repaying the home loan and accumulating a substantial income corpus for his kids' education, he reduced coverage back to ₹2 crore.
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The top 10 benefits of choosing the best life insurance in India, include financial protection, tax benefits, and savings in the long run. Selecting the best life insurance guarantees complete coverage for you and your family's future.
Life insurance offers financial security to the insured person's family in the event of the policyholder's death. This support can help with debts, daily expenses, children's education, and other bills. It protects the family's financial health.
Life is a thrilling journey, and uncertainties are part of it. A life insurance policy offers peace of mind. It ensures that your family is financially secure, even if you're not there to help.
Several life insurance policies, such as Endowment plans and TROP, provide maturity benefits. Such plans are ideal for individuals who want guaranteed returns on the premiums paid.
Life insurance pays a death benefit, or sum assured, to beneficiaries if the policyholder passes away while the policy is active.
Policies offer policyholders tax deductions under Sections 80C, 80D, and 10(10D). Furthermore, the death benefits paid to nominees or loved ones are often not subject to taxes.
Business owners can invest in a good life insurance policy. This can help their businesses avoid losses if an employee or business associate passes away.
Life insurance policies with a savings component can serve as an extra source of income during retirement.
For example, life insurance endowment schemes can give you regular income when you retire.
Some life insurance policies, such as Endowment Plans and Whole Life Insurance, have a savings feature. These policies accrue cash value over time and can be accessed when needed.
Life insurance helps people build an inheritance for their heirs. It leaves a financial legacy for the family’s future.
Many life insurance policies allow policyholders to take out loans against the cash value of the policy. This loan can be used during emergencies or to meet financial requirements without surrendering the policy.
Life insurance operates on a simple concept, so let’s understand the basics of how life insurance works in a straightforward manner.
Choose the best plan that fits your needs after comparing options.
Determine how much coverage you need, decide on an affordable premium based on your income, and pay regularly.
Your family is financially secure with life coverage.
Easily claim death or maturity benefits according to your plan.
Life insurance operates on a simple concept, so let’s understand what happens when you buy the right life insurance. To start with, you must understand that when you purchase life insurance, you're entering into a contract with the insurer that provides financial protection for your loved ones in case of your passing. Here’s what happens next:
Life insurance is based on a simple idea. Let’s see what occurs when you choose the right policy. When you buy life insurance, you make a deal with the insurer. This contract offers financial support for your loved ones if you pass away. Here’s what happens next:
Picking the right life insurance plan is a wise financial choice. Here's why life insurance is essential:
In India, the age limit for eligibility ranges from 18 to a maximum of 65. Purchasing life insurance is simpler while young and healthy, yet the question arises: “Why insurance? I'm young and in good health”. Well! Let’s look at 3 common scenarios.
If your monthly income is tight, you may wonder how you could afford life insurance. However, term insurance is relatively cheap and could be within your reach. Many term plans are available in the market, including the ACKO Life Flexi Term Plan, which starts at just ₹534 per month*.
Why insurance? I am healthy, I do not get sick, or if I get sick, I do not spend much money in the hospital, and so on. Staying fit and not having risky habits is advisable, but leaving out life insurance as you are young may prove costly.
The family's health history largely needs to be known because particular diseases may be hereditary. However, maintaining healthy practices is advisable, and acquiring a life insurance plan is smart. You can also add extra coverage by adding riders, like critical illness and accidental death. It only makes sense to plan for the future so as to keep away from situations that are beyond one’s control.
The person who buys the policy and pays premiums
The policy provider that accepts the risk and pays for losses during the policy term
Add-ons for extra protection, like Accidental Death or Critical Illness
The person covered under the policy
Amount the insurer pays during a claim
Total duration of financial protection and benefits
The person selected by the policyholder for the benefits
The regular amount agreed to paid (monthly, quarterly, half-yearly or annually) by the policyholder
Amount paid by the insurer when the policyholder outlives the policy term
Amount paid to the nominee if the policyholder passes away during the policy term
A window/time the insurer gives to the policyholder to review and cancel the policy without surrender charges
A window/time to pay premiums after the due date before the policy becomes inactive
Choosing the best life insurance policy can feel like a big task, yet it does not have to become overly complex. Here is the easy-to-read breakdown of factors to consider while selecting the best life insurance policy for yourself:
First things first: What are you trying to protect?
Income: If anything were to happen to you, how much money would your family need? Think about your salary and how long they might need help.
Debts: Do you have a mortgage, automobile loan, or other large payments? These are important to include.
Future Costs: You may have children who will require college funding, or you'd like to secure your partner for retirement. These are important, too.
Most policies include add-ons called "riders" that may help pay for additional situations. Typical ones are:
Accidental Death Benefit: If you pass away as a result of an accident, it provides additional coverage.
Critical Illness: Provides payment in case you are diagnosed with a severe disease (such as cancer).
Waiver of Premium: If you're disabled and cannot work, they'll waive premiums.
There are different types of life insurance:
Choose the one that fits your needs.
One general guideline is to purchase coverage equal to 10-15 times your annual income. However, it is also important to consider your individual circumstances and how much your family would need.
Determine how much you can comfortably pay our premiums. Remember that term life is generally less expensive than whole life, but you will need to decide depending on what works best for you and your needs.
You want to ensure that the insurance company you choose can pay out when you need it. So, look at its solvency ratio and CSR (Claim Settlement Ratio).
No one enjoys reading the print, but you'll want to know what's included and excluded. Be sure you know about things such as exclusions.
Things in life change, and your life insurance needs could also change. So, check on your coverage every few years to ensure that it continues to meet your situation.
Keep these tips in mind when navigating life insurance options in India.
Understand your financial goals.
Research before choosing.
Read and ask questions.
Match policy to your goals.
Be truthful about health and habits.
Avoid lapses.
Ensure smooth claims.
Choose relevant ones to enhance coverage and stay protected.
Update as life changes.
Be honest, but only state facts if you’re sure.
Find out the claim process, premium payment, etc.
Focus on coverage.
Prevent financial burden in case of unexpected events.
Consider implications.
Reflect life changes.
Prevent policy lapse.
Ignore messages or calls from unauthorised entities.
Get a personal policy, too.
No doubt! You’ve worked hard to build a comfortable life, paying off loans, saving for your child’s education, and securing your family’s future. But what if something unexpected happens? Would your loved ones be able to manage their expenses, EMIs, or long-term goals without your income? This is where life insurance steps in as a reliable financial backup.
In contrast to stock market investments that are volatile, life insurance guarantees financial help. Its benefits support your family with everyday expenses, debts, or college fees if you’re no longer there. Certain plans also assist you in accumulating wealth over a period of time. And with tax advantages, you can lower your taxable income and secure your future.
Women should consider investing in a life insurance plan to secure their financial future and protect their loved ones. Here are six universal reasons:
Think of life insurance riders as add-on features to your policy. They're customisations that enable you to include additional coverages for various conditions.
The following is a list of typical life insurance riders that can contribute more value to your policy:
If you pass away in an accident, this rider provides your loved ones additional funds on top of your standard benefit.
Will pay you a lump sum benefit if you fall seriously ill from a major ailment such as cancer, heart disease, or stroke.
If you get disabled and are unable to work, this rider will waive your premium payments.
Allows you to tap into a portion of your death benefit prematurely if you have a terminal illness. You can use this to pay for medical expenses or other requirements.
If you require long-term care (such as in a nursing home), this rider allows you to use some of your death benefits to cover those costs.
If you outlive your term life insurance policy, this rider returns the premiums you've paid.
Your life insurance premium depends on key factors: your age, the sum assured, the policy term, your health, and your lifestyle habits. Accurately calculating the premium ensures sufficient coverage without overburdening your finances. Use the ACKO insurance calculator to determine your premiums and life insurance quotes.
Meet Shivam, a 30-year-old software engineer keen on securing his family's financial future with a life insurance plan.
Shivam looks at his family’s financial needs. This includes paying off loans, helping with his children's education, and making sure they live comfortably. After thorough consideration, he arrives at a sum assured of ₹2 Crore.
Shivam uses an online premium calculator to estimate his premium amount. He inputs his age (30 years) and the sum assured (₹2 Crore) and selects a policy term of 30 years. Since Shivam lives a healthy life and doesn't smoke or drink, the calculator suggests a premium of ₹15,000 each year.
Keeping the estimated premium in mind, Shivam starts comparing term insurance plans from different insurers. He checks the features, extra riders, and customer reviews to pick the plans that suit his needs. He does thorough research. Then, he narrows his options to a few good policies and buys the best one.
Use the ACKO insurance calculator to determine your premiums and life insurance quotes. https://www.acko.com/life/p/segment
Your life insurance should cover your income and support your family for many years. But how much is enough? A guideline is usually to have 10-15 times your income covered by insurance. If you earn ₹10 lakh a year, you may need at least ₹1 crore in life insurance. This helps ensure your family's financial security. https://www.acko.com/life/p/segment
What does your family require each month in rent, food, utilities, and everyday expenses? Multiply it by the number of years they'd require assistance.
Include any mortgage, car loan, or credit card debt. This helps protect your loved ones from having to repay them.
Consider school fees, college costs, and other financial dreams. These may include weddings, buying homes, or supporting your kids' careers.
If your parents are old or you have health problems, add extra coverage for medical costs or long-term care.
Take your current savings, assets, or investments away from the coverage amount you need.
Having more than one life insurance policy is a good financial plan. Life changes over time. Younger people may only need a simple term plan. But as their responsibilities grow, like marriage, children, and loans, they might need more coverage.
For instance:
Having more than one policy provides flexibility, improves coverage, and avoids delays in settling claims. However, it is essential to evaluate your financial capacity and avoid over-insuring.
Buying life insurance is a key financial choice. You can purchase a policy in two ways: online from an insurer's website or offline. But which one is preferable? Let's analyse the benefits of both.
| Benefits of Purchasing Life Insurance Online | Benefits of Purchasing Life Insurance Offline |
| Lower Premiums: Cheaper policies with no middlemen. Example: ACKO Life Flexi Term Plan from ₹534/month. | One-on-One Assistance: Agents help with policy selection, paperwork, and understanding. |
| Speed & Simplicity: Quick comparisons, reviews, and purchases without agents. | Direct Contact: In-person interactions with agents for questions and policy clarifications. |
| Greater Transparency & Control: Direct access to policy details without sales influence. | Ideal for Complex Policies: Advisors assist with high-value or investment-linked plans. |
| Quick Approval & Claims: Faster processing and minimal paperwork, especially through online apps. | Support in Claims & Servicing: Agents assist with claims and provide a hassle-free process. |
| Convenient Management: Renew, track, and modify policies easily online. | Suitable for Non-Tech-Savvy People: Easier for those who are not comfortable with online purchases or management. |
When you buy life insurance, the process you go through can have a big influence on your experience. Here are some important reasons to keep in mind:
| When buy life insurance online | When buy life Insurance Plan Offline |
| ✔️ You desire an affordable policy with cheaper premiums. | ✔️ You like face-to-face guidance to know policies in detail. |
| ✔️ You prefer a quick, self-investigated process without an intermediary's intervention. | ✔️ You are buying a complicated scheme (like ULIPs, endowment plans, or high-sum insurance). |
| ✔️ You are at ease comparing policies online and paying digitally. | ✔️ You require assistance with paperwork and claim settlement. |
| ✔️ You require a basic term insurance plan with no investment aspect. | ✔️ You do not feel at ease making online payments. |
The Supreme Court of India has ruled that failing to disclose existing life insurance policies when purchasing a new one can lead to a claim being rejected. In one of its recent judgments, a claim was repudiated due to the policyholder’s failure to disclose multiple existing policies. Insurers assess risk and premiums based on full disclosure, including the Human Life Value (HLV). Non-disclosure can result in policy cancellation or claim denial. This ruling highlights the importance of declaring all existing life insurance policies to avoid future complications.
Source: https://economictimes.indiatimes.com/wealth/insure/your-life-insurance-claim-may-be-rejected-if-you-take-a-new-plan-without-declaring-the-ones-you-already-have-says-sc/articleshow/119420255.cms?from=mdr
ACKO Life Insurance ensures a lump sum payout so your loved ones obtain instant financial stability. This includes the fact that in the event of an unfortunate incident, the entire sum assured will be made available to your family at one time.
Why is a Lump Sum Payout Advantageous?
Your dependents will not have to worry about everyday expenses such as groceries, rent, or utility bills.
Pending home loans, car loans, or credit card debt will not fall on your dependents.
Whether it is your child's education, marriage, or long-term investments, the payout ensures financial security.
Your loved ones can decide how to use the money based on their short-term and long-term needs.
In India, if you are considering purchasing a life insurance policy, here is a list of the key documents that generally require:
A government-approved ID - Aadhaar card, Passport, Voter ID, or PAN card.
The insurer may require your birth certificate to confirm your date of birth.
The insurer may use documents like a bank statement or your Aadhaar card to confirm your address.
To demonstrate that you can pay the premiums, the insurer may request salary slips (usually for the last 3 months), bank statements (for the previous 6 months), Form 16, etc.
Certain insurers may request medical history or a medical check-up report, particularly if:
A few passport-sized photographs, usually around 2-3.
The details of the person who will receive the sum assured, such as name, age, contact details, etc.
Some insurers may ask for your profession, especially if you’re in a high-risk occupation, such as a pilot or miner, as it may affect your premiums.
ACKO Life Insurance offers an affordable, pure-protection term plan called the ACKO Life Flexi Term Plan. Regular life insurance policies often involve agents and brokers. They earn commissions, which can increase the cost for customers. ACKO's direct-to-customer model skips intermediaries. This cuts distribution costs and offers lower premiums with high coverage.
In 2023, the average life expectancy in India is about 72.03 years. Males live to about 70.52 years, while females average 73.60 years. While life expectancy has improved, uncertainties remain.
Poor diet and a sedentary lifestyle lead to deteriorating health. A study shows that around 61% of Indian women and 47% of Indian men are at risk for lifestyle-related diseases.
In India, the probability of an individual developing cancer during their lifetime is one in nine. Additionally, Also, the number of cancer cases is expected to increase by 12.8 % in 2025, compared to 2020.
Heart disease remains a leading cause of mortality in India due to stress, poor diet, and tobacco use. Life insurance gives financial readiness for medical emergencies and future healthcare expenses.
As of 2021, India has the highest medical inflation rate among Asian countries, standing at 14%. Furthermore, it is anticipated that the medical inflation rate will experience an additional increase of 10% in 2023.
India recorded approximately 4,80,583 road accidents in 2023. These accidents resulted in nearly 1,72,890 deaths, averaging about 474 fatalities daily.
The sudden loss of a family's primary breadwinner can result in a financial crisis. Many families find it hard to meet basic needs. They also struggle to pay debts and support a child's education after a loss.
To buy an ACKO Flexi Term Plan online, you can follow this simple step-by-step guide:
Open the ACKO mobile application or visit the ACKO website.
Log in to your account using the credentials or create an account if you do not have one.
Select the plan according to your life insurance requirements once you log in.
Answer a few questions to determine your life insurance eligibility and the premium amount.
Once eligible for the preferred plan, you can pay the premium online.
After paying the premium, you will receive it through email or download it from the application.
Please note that it is a generic process and may differ depending on your preferred plan and other details.
Organising these papers lowers claim settlement time, and your loved ones receive the sum without any delay.
The documentation of your insurance coverage. Always store a copy somewhere safe.
One that is issued by local authorities and is the key document needed for the claim.
Aadhaar Card, PAN Card, or Passport is needed to authenticate the nominee's information.
To ensure an easy direct deposit of the amount of the payment.
In the event of natural or death due to illness, medical history could be required.
In case of the death of the policyholder, the nominee or legal heir needs to take these steps to raise a claim:
Notify immediately via the customer care or branch office.
Submit original policy documents, death certificate, proof of identity, and bank details for processing.
The insurer validates the claim, and once confirmed, it is settled in the nominee's bank account.
The sooner the documents are presented, the earlier the claim gets settled.
Regarding life insurance, certain types of death typically aren't covered. Here are the 6 most common types:
Involvement in high-risk activities like skydiving or extreme sports may not be covered. Some policies offer "riders" or add-ons that cover such activities.
Life insurance policies usually don't pay the death benefit for suicide that occurs within the first year of the policy.
Life insurance usually does not cover death that occurs while committing a crime, like a robbery or other unlawful activity.
Many life insurance policies have an exclusion for death due to war or terrorism.
If a medical condition that was not reported when the policy was acquired leads to death, coverage may be denied.
If the life insurance policy lapses due to unpaid premiums, no payment will be made to the beneficiary.
When there is no nominee specified, or the nominee is pre-deceased, the claim is paid according to legal procedures:
The claim amount is transferred to the spouse, children, or parents according to India's laws of succession.
The sum is divided as per the guidelines stated in the Will.
To avoid unnecessary complexities, update your nominee's information from time to time, particularly after key life events such as marriage or the birth of a child.
So, if you’re trying to claim your life insurance after it matures, here’s the standard procedure
First, read the information in your life insurance policy. It will typically state when you can expect to receive your payout.
Contact the insurance company to let them know you're willing to make a claim.
You must submit a few documents, such as your policy information and proof of identity (any additional documents required by your insurance company).
The insurance company will process the claim after receiving all the required information. You can always follow up to get the updates.
You’ll receive your maturity benefit if all requirements are met. Depending on your policy, it may be a lump sum or in instalments.
Your life insurance requirements vary as your life changes. These are four important times when you should go over and revise your policy:
Your partner financially relies on you. Revising your policy guarantees their future.
Kids bring new expenses. An increased coverage will ensure their education, medical care, and well-being.
A home loan is a serious long-term financial commitment. Your insurance must cover the outstanding loan so your family is not burdened.
As your income grows, so do your expenses and lifestyle expenses. Reviewing your policy keeps your coverage adequate. Reviewing your policy from time to time ensures that it is always aligned with your financial goals and obligations.
Here are some common questions about Life Insurance plans.
Here are some more common questions asked on Discussion & Forums about Life Insurance plans.
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ACKO Tech, the parent company of ACKO General Insurance, has announced its expansion into the life insurance sector with the launch of ACKO Life Insurance. The company's debut offering is ACKO Flexi Term Life Insurance Plan. Read more
ACKO Tech, the parent company of ACKO General Insurance, has launched ACKO Life Insurance with its new Flexi Term Life Insurance Plan. This move marks ACKO's expansion from general to life insurance. The ACKO Flexi Term Life Insurance Plan offers customizable coverage to adapt Read more
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. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions. For full disclaimer kindly click https://www.acko.com/life/disclaimer/
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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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