The Role of Life Insurance - Why Do You Need it?

Marriage marks the beginning of a new journey. You are devoted to caring for your better half, and it becomes your responsibility to ensure that your spouse can maintain the same standard of living even in your absence.

• That’s why buying an adequate life insurance cover is strongly recommended when you get married.
• As a rule of thumb, you should have a life cover of at least 15-20 times your current annual income when you tie the knot.
• So if you earn ₹10 lakhs annually, you should buy a ₹1.5 - 2 crore term insurance plan.
• This amount is a financial safety net for your spouse to maintain their lifestyle without worries.

ACKO Life Flexi Term Plan allows you to customise your coverage to fit your income and spouse’s lifestyle needs. You can change the Sum Assured as your income increases over the years.

Buying a home is a significant milestone with its share of expenses and long-term financial liabilities like home loans.

• As a homebuyer, it is critical to have an adequate term insurance cover so your family does not inherit the burden of unpaid loans.
• Your life insurance coverage should be extensive enough for your home loan amount.
• Additionally, you should have a buffer amount to cover other household expenses and your family’s lifestyle.
• For instance, if you have taken a ₹50 lakh home loan, your life cover should be at least ₹1 crore.

With the ACKO Life Flexi Term Plan, you can quickly increase your Sum Assured if you take a home loan later. Once the loan is repaid, you can reduce the coverage to pay only for the required coverage.

The birth or adoption of a child is a joyous turning point in one’s life. As a parent, you want to secure the best possible future for your child, even in your absence.

• Adequate life insurance coverage ensures that your child’s needs, such as higher education, marriage, etc., are met.
• When you have a child, it is recommended that you have coverage of at least 15-20 times your current annual income.
• Additionally, you can consider dedicated child insurance plans that build a corpus over time to take care of their future milestones.

Retirement is a significant milestone where you stop earning an active income. At this stage, you need to have accumulated enough wealth to maintain your lifestyle.

• If you have financial dependents, adequate life insurance ensures they can live comfortably after you.
• It helps replace the loss of income for dependents and leaves them with a financial safety net.
• Typically, you should have a life cover of at least 8-10 times your last drawn annual income before retirement. 

ACKO Life Flexi Term Plan lets you increase or decrease your Sum Assured as per changing needs. It stays committed to protecting your family. 

Critical illnesses like Cancer, Heart Attacks, Kidney Failure, etc., can financially drain families in addition to being emotionally taxing. 

• Having adequate insurance becomes vital for expensive treatments like chemotherapy, surgery, dialysis, etc. 
• It reduces the financial burden on your family when they are already dealing with a health crisis.

ACKO Life Critical Illness Benefit Rider pays out upon diagnosis of 21 critical illnesses. It provides much-needed financial support during the most challenging times. Future premiums are also waived, so your family has one less thing to worry about.

Starting one's own business is a significant decision that usually requires taking loans, mortgaging assets, etc. It also means financial dependence on the business for your family. 

• Adequate life coverage ensures that your business continues to operate and that loan/debt obligations are met in your absence.
• Your nominees can use the claim amount to hire professional help to continue running the business. 
• When starting an enterprise, you should have a life insurance policy covering at least 20-25 times your current annual income.

The ACKO Life Flexi Term Plan offers high coverage at affordable premiums, making it ideal for budding entrepreneurs to protect their ventures.

Whether receiving an inheritance or building your estate, planning is essential to smoothly passing it on to successors.

• Life insurance ensures that estate taxes and other settlement costs do not shrink the assets your beneficiaries inherit.
• The proceeds from the policy claim can be utilised to pay any such taxes or expenses.
• One can nominate the estate/assets directly as beneficiaries in their term policy for smooth execution. ACKO Life Flexi Term Plan provides Will creation services to draw a clear picture of which assets go where.

In addition to the above goals, you may have some other significant personal or family goals close to your heart—a dream vacation home, sponsoring your sibling’s global education, a grand wedding for your daughter, etc.

• Having adequate term insurance means your family cannot sacrifice such dreams even if you are not there to share the joy.
• The corpus protects their financial ability to fulfil your particular wishes and create memories as you desire.

Under its customisable coverage, the ACKO Life Flexi Term Plan can help cover significant, non-recurring expenses so that such legacy dreams can become a reality.