A term insurance plan with the right coverage is important for anyone earning between ₹20 and ₹30 lakh. It gives your family financial security by offering a large payout if you pass away during the policy term. This money can help cover loans, daily expenses, and other future needs. A term life insurance plan also gives peace of mind, knowing your loved ones are protected. Keep reading to learn everything you need to know about choosing the best term insurance for your family's financial future.
Life Cover Starting @ just ₹18/day*
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99.38% Claim settlement ratio*
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If you are a professional with an annual income of ₹20 to ₹30 lakh, the general thumb rule is to have coverage that is 15 to 20 times your yearly income. While this thumb rule gives you a starting point, you should also consider other factors before deciding on the exact coverage.
Nevertheless, your personal financial situation will determine the level of coverage you require, so it would be advisable to consult a financial advisor about the best options available.
Example: Ravi is a 35-year-old professional earning ₹25 lakh per year. He has a home loan and two school-going kids. Based on his income and responsibilities, he chooses a 5 crore term insurance plan to secure his family's future.
You should choose term insurance because it offers high coverage at low cost, gives financial security to your family, provides tax benefits, and brings peace of mind knowing your loved ones are protected.
Term insurance plans give high coverage at very low premiums compared to other life insurance options. This makes affordable term insurance plans easy to buy for young adults and professionals who want protection without straining their budget.
A term life insurance plan gives a lump sum (sum assured) to your family if you pass away during the policy term. This money helps them stay financially secure, continue their lifestyle, and pay off loans or debts.
If you have a mortgage or loans, term insurance would be highly effective in clearing all these debts so that your loved ones are not burdened in case of your unfortunate demise.
You can often secure a substantial death benefit for a lower premium, providing financial security for your loved ones in case of your untimely passing.
With term insurance, you can determine the right coverage and policy term (duration) depending on your needs and financial requirements.
The premiums paid on term insurance get tax deductions under Section 80C of the Income Tax Act. Death benefits are generally exempt from tax under Section 10(10D).
Upon your untimely death, the plan provides a lump sum that helps your loved ones cover living expenses, debts, and future needs. Keeping this financial protection in place brings immense peace of mind.
You should buy term insurance online because it is cheaper, faster, and easier to manage. Here are the main benefits of buying a term insurance plan online:
Online affordable term insurance plans cost less as there are no middlemen.
You can compare term life insurance plans, riders, and claim settlement ratios in one place.
Use an online term plan calculator to instantly see the term insurance premium for your chosen coverage amount.
You can buy policies anytime, anywhere, from your phone or laptop.
All policy details are available online, so you know exactly what you are buying.
No paperwork, and you can manage everything digitally, including claims.
Choosing the right term insurance coverage involves several key factors to ensure the policy meets your needs. Here are some important considerations:
It's vital to calculate how much your loved ones would need if you were no longer around. Do not forget your outstanding debts, such as mortgages or loans that must be covered.
Choose a period that aligns with your financial responsibilities. Ask yourself if your finances will change or if you will have new responsibilities.
Consider your budget so you have sufficient money to pay premiums. Compare quotes from various insurers to get the best deal.
A little input in health can dramatically influence premium costs. Consider how pre-existing conditions or lifestyle choices (such as smoking) may impact costs. Understand the underwriting process and what medical exams or information might be required.
Look for policies that allow for conversion to permanent insurance without a medical exam.
To add more protection, you may purchase riders, such as critical illness or accidental death benefits.
Read reviews and ratings from other customers about the insurer's believability and supportiveness. Research the financial strength and claims-paying ability.
Be aware of the tax benefits the death benefit and payments of premiums might generate.
Consider how major life changes, like marriage, having children, or changing jobs, may affect your insurance needs in the future.
The factors that determine term insurance premiums for people with a salary ranging from 20 lakh to 30 lakhs are given below:
The table below compares the ACKO Life Flexi Term Plan with traditional term insurance plans, highlighting key differences in flexibility, premium payment options, and value-added features.
| 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 |
| Free Will Creation | Yes | No, Generally does not offer integrated will creation services |
ACKO Life Flexi Term Plan is a modern, highly flexible, and customer-centric solution for long-term financial protection from ACKO. The plan offers a degree of policy flexibility unmatched by most traditional insurers. This unique plan from ACKO stands out in the market due to several key differentiators.
You won’t have to pay higher premiums that typically increase with age or inflation adjustments over time.
It allows seamless modifications to the Coverage Amount (Sum Assured) and Policy Duration. This flexibility means that you can increase or decrease your coverage based on your evolving life circumstances, such as marriage, buying a house, or having children.
A fully digital policy management system is offered. Policyholders can easily make any policy adjustments (endorsements), such as:
Adding the right riders to your term insurance plan gives extra protection for serious risks like accidents or illness. Here are some useful term insurance riders you can add to increase the value of your plan.
Accidents can happen anytime, especially for working professionals who travel or drive regularly. The accidental death rider gives your nominee an extra payout if you die due to an accident. ACKO Life offers this protection through the ACKO Life Accidental Death Benefit Rider, which adds more financial security for your family.
If an accident leaves you permanently disabled and you can’t work anymore, this rider pays you a regular income. It helps manage monthly expenses when your earnings stop. ACKO Life provides the ACKO Life Accidental Total Permanent Disability Benefit Rider, which supports your financial stability in such situations.
This rider pays a lump sum if you are diagnosed with a serious illness. It helps cover hospital bills and loss of income during treatment. ACKO Life offers the ACKO Life Critical Illness Benefit Rider, which covers 21 critical illnesses. This rider ensures that your family stays financially protected during tough times.
Here is the complete list of 21 covered critical illnesses.
✔️ Cancer of Specified Severity
✔️ Myocardial Infarction (First Heart Attack Of Specific Severity)
✔️ Open Chest CABG
✔️ Open Heart Replacement Or Repair Of Heart Valves
✔️ Coma Of Specified Severity
✔️ Kidney Failure Requiring Regular Dialysis
✔️ Stroke Resulting In Permanent Symptoms
✔️Major Organ /Bone Marrow Transplant
✔️ Permanent Paralysis Of Limbs
✔️ Motor Neuron Disease With Permanent Symptoms
✔️ Multiple Sclerosis With Persisting Symptoms
✔️ Benign Brain Tumor
✔️ Blindness
✔️ Deafness
✔️ End Stage Lung Failure
✔️ End Stage Liver Failure
✔️ Loss Of Speech
✔️ Loss Of Limbs
✔️ Major Head Trauma
✔️ Primary (Idiopathic) Pulmonary Hypertension
✔️Third Degree Burns
A high claim settlement ratio means the insurer pays most of the claims they receive. This is very important for professionals with ₹20-30 lakh income, as they usually choose high coverage amounts like ₹3 to ₹5 crore.
When you buy a term insurance policy, you want to be sure your family will get the money without any problems if something happens to you. And, ACKO Life has a 99.38% claim settlement ratio, which makes it a strong choice for high-income earners who want peace of mind.
If your annual income is ₹20 to ₹30 lakh, the recommended term insurance coverage is around 15 to 20 times your salary. Below are some coverage options worth considering.
1 Crore Term Insurance: A good starting point for basic protection, especially for those with fewer financial responsibilities.
3 Crore Term Insurance: Ideal for professionals with moderate financial needs, dependents, and ongoing loans.
5 Crore Term Insurance: Strong protection for families with higher monthly expenses, long-term goals, or home loans.
7 Crore Term Insurance: Suitable for professionals with multiple dependents, a high-cost lifestyle, or future planning needs.
10 Crore Term Insurance: High-value coverage for those wanting to fully secure their family's income replacement for many years.
12 Crore Term Insurance: A smart choice for those expecting rising costs, inflation, or growing financial responsibilities.
To choose the right cover, you can also use a term plan calculator. It will show you the premium for different coverage amounts, so you can find a plan that fits your budget and goals.
Buying a term insurance plan is an important step, but many people make simple mistakes that can reduce its benefits. Here are some mistakes to avoid:
Many people buy less cover to save on premium, but this can leave your family underprotected.
Costs increase over time. Choose enough coverage to protect your family’s future needs.
Riders like critical illness and accidental death can make your plan stronger. Don’t skip them.
Premiums go up with age. The earlier you buy, the cheaper it is.
Always give correct health information. Hiding facts may cause claim rejection later.
Avoiding these mistakes will help you buy the right term life insurance policy that truly protects your loved ones.
Securing a term insurance plan is a vital step for professionals earning between ₹20 to ₹30 lakh. With a sufficient sum assured, you can ensure that your loved ones are financially protected even in your absence. Understanding the required coverage and the numerous factors influencing the premiums is key to buying the right term plan. A term plan calculator can help you estimate the right coverage and premiums to help you make informed decisions.
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