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Best Term Insurance Plan : Buy Term Insurance Policy Online in India 17th May 2024

Term Insurance Plans: Quickly understand term life insurance: its death benefit and types. Explore ACKO Life for smart coverage choices

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Let's build a perfect life insurance cover for you
Your Name
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Female
Have you smoked in the past 12 months?
Yes
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Your age
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+91
ARN: L0053 | *T&Cs Apply

Home / Life Insurance / Term Insurance

What is Term Insurance?
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Term Insurance is one of the most common types of life insurance plans. You pay a fixed premium for a specific year or period, i.e., a policy term, and get a large life coverage in exchange.

Term insurance is a financial protection tool designed to provide security to your loved ones in your absence. The benefit can cover various expenditures like children's education, loan repayments, daily expenses, and maintenance of living standards even after losing a crucial income source. It's an excellent choice for individuals with financial dependents. Regular Term Insurance, Return of Premium Term Insurance, Increasing Term Insurance, and Decreasing Term Insurance are popular term plans in India. 

Here's why you should buy a Term Insurance Plan online in 2024

Pure and Straightforward Plan
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Purely designed to offer a payout to nominees in your absence during the term. Unlike whole life insurance, it does not accumulate cash value over time. 

Highly Affordable Premiums

Highly Affordable Premiums
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One of the most affordable types of life insurance. You pay a small amount regularly, and your family gets a comprehensive payout if you pass away during the policy term.

Financial Protection for your family

Financial Protection for your family
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Ensures your family won't struggle financially if something unfortunate happens to you. Get a lump sum (sum assured) to cover expenses like daily living, education, and even outstanding loans.

Peace of mind

Peace of mind
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Knowing your family is financially secure provides peace of mind.

Tax Benefits
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Tax benefits are available under sections 80C & 80D of the Income Tax Act 1961. 

Customisable

Customisable
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Choose the coverage amount (sum assured) based on your family's needs and budget. Decide how long you want the coverage to last.

How does Term Insurance Work?
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Term insurance works on a simple concept of income replacement for your financial dependents in your absence, i.e. ensuring that the expenses of the family related to loans (personal, home, education, etc.), kids' education, daily expenses and lifestyle expenses (travel, car, etc.) are taken care of in the event of an unforeseen circumstance.

The Term insurance plan works as follows:

Let's look at an example:

Rohit, a 29-year-old, protects his family's future with a 20-year insurance plan covering INR 1 Crore. He is a non-smoker, so he pays just Rs 620/month, ensuring financial protection for his loved ones in case of any unfortunate event (untimely death). All this while he enjoys his peace of mind. 

Why Should You Buy a Term Insurance Plan?
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Term insurance is an excellent choice for parents, newly married couples, working women, young professionals, and taxpayers. Let's explore some of its distinct features for a clearer understanding:

ACKO Life Flexi Term Plan
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ACKO Life Flexi Term Plan is a unique plan offering flexible coverage for your changing lifestyle! This exclusive plan is known for its unmatched flexibility. Here is a list of things you can customise in your ACKO Life Flexi Term Plan

Sum Assured or Coverage amount required to provide safety to financial dependents can change over a period of time as the financial dependents increase (kids) or financial obligations such as loans are taken (home, personal or education loans) or lifestyle changes as income levels change (you get promoted etc.)

Extensive life coverage at an affordable premium. 

Flexibility to customise policy terms, payment frequency, payment options, change nominees, add riders and more to accommodate changes across life.

Easy and Convenient: Easily buy or make claims on your term insurance policy. No more hassle, just simple and quick steps.

Will creation services: Create a will to draw a clear picture of which assets go where.

Let's understand the flexibility of ACKO Life Flexi Term Plan with an example: 

Meet Rahul, who has an annual income of 10 lakh. He got married at 30 and bought a 1 crore coverage ACKO Flexi Term Life Plan for his spouse, Rina.

At 35, with two kids (Nirvana and Kavir) and a 50 lakh home loan, he increased the coverage to INR 2 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 1 crore. This shows how ACKO Life Flexi Term Plan adapts to individuals' changing life circumstances.

Term Insurance Riders - Meaning & Benefits | ACKO Life Flexi Term Plan
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In simple terms, Term insurance riders are optional features/add-ons that you can choose to include in your basic term insurance policy. These riders serve various purposes, such as:

Enhancing Coverage

Enhancing Coverage
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Adding a rider enhances the overall base plan’s coverage, providing peace of mind

Financial Protection

Boosting Financial Protection
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Easily boost financial protection against accidental death, accidental disabilities, critical illness, etc.

Specific Needs

Matching Specific Needs
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Designed to cater to the specific and various needs of individuals.

ACKO Life Flexi Term Plan Riders
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ACKO Life Flexi Term Plan comes with an option to enhance your coverage with the help of useful add-ons. 

1. ACKO Life Accidental Death Benefit Rider

Accidental Death Benefit Rider is one of the most affordable riders, purely designed to protect your family with an additional amount of money if your death is caused by an accident.

2. ACKO Life Accidental Total Permanent Disability Benefit Rider

Accidental Total Permanent Disability Rider is designed to protect your financial well-being in case a major accident leaves you permanently unable to work or care for yourself. It provides an extra amount to cover daily expenses. Additionally, we will waive off all future premiums of your ACKO Life Flexi Term Plan.

3. ACKO Life Critical Illness Benefit Rider

ACKO’s Critical Illness Rider is an extra layer of protection for your term insurance. If you get seriously ill, this rider can provide you with a large amount of money to help you through a tough time. 

Another key benefit of this rider is that ACKO waives off all future premium payments due for your ACKO Life Flexi Term Plan. We cover 21 critical illnesses, including life-threatening common illnesses among women, such as breast cancer, cervical cancer, fallopian cancer and ovarian cancer. 

List of Covered Critical Illnesses

Cancer of Specified Severity

Benign Brain Tumor

Myocardial Infarction (First Heart Attack Of Specific Severity)

Blindness

Open Chest CABG

Deafness

Open Heart Replacement Or Repair Of Heart Valves

End Stage Lung Failure

Coma Of Specified Severity

End Stage Liver Failure

Kidney Failure Requiring Regular Dialysis

Loss Of Speech

Stroke Resulting In Permanent Symptoms

Loss Of Limbs

Major Organ /Bone Marrow Transplant

Major Head Trauma

Permanent Paralysis Of Limbs

Primary (Idiopathic) Pulmonary Hypertension

Motor Neuron Disease With Permanent Symptoms

Third Degree Burns

Multiple Sclerosis With Persisting Symptoms

 

How does a Term Insurance Plan work at ACKO?
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A term insurance plan works in the simplest manner, ensuring a hassle-free journey experience for you!

Buy Term Plan

Buy Term Plan
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You start by choosing a term insurance plan and you pay a regular premium for this plan

Coverage Period

Coverage Period (Term)
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You also pick a "term" for your insurance plan for 10, 20, 30 years, or more.

Claim

Claim
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Submit the required documents to our support email [[email protected]] or simply dial [18002101992] and the ACKO claims team will take care of you.

Who Should Buy a Term Plan?
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Buying a term insurance plan is a practical option for everyone, especially those who are financially dependent, to secure their family’s finances in case something unfortunate happens. Here’s a list.

Breadwinners
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If you're the one who brings home the bacon, term life insurance is essential. It ensures your family won't face financial difficulties if you're no longer there to provide for them.

Debt Holders
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If you have loans or debts, like a home loan or car loan, term life insurance can cover those debts so your family doesn't get burdened.

Family Dependents
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Term insurance is a smart decision if you have loved ones who depend on you financially, like a spouse, kids, or ageing parents. It offers peace of mind, knowing that even if you're not present, there is financial protection to safeguard your loved ones' well-being.

Working Women
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In today’s workforce, women stand shoulder-to-shoulder with men. Term insurance is a good option for tax savings or securing a family's financial future. Moreover, various term plans offer different riders, like critical illness riders, that provide comprehensive coverage for life-threatening illnesses commonly affecting women.

Business Owners
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If you own a business, term life insurance can be crucial to ensure the smooth transition of your business or to cover business debts in case something happens to you.

Young and Healthy People
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Buying term life insurance when you're young and healthy can be cheaper. It's like locking in a good deal for the future.

Estate Planning
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If you want to leave your heirs and inheritance or financial legacy, term life insurance can help ensure they receive it.

Single Parent
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If you're a single parent, your children depend on you entirely. Term life insurance can give you peace of mind, knowing that your kids will have financial support if something happens to you

9 Types of Term Insurance Plans in India
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Term plans are available to provide financial security to your loved ones. However, it's crucial to understand that each plan functions differently. Let's explore and learn about various types of term plans available in the Indian market to determine which one works best for you.

Regular Term Insurance
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Think of this as the basic version. You pay a fixed premium every year, and if something unfortunate happens to you during the policy's term, your family gets a lump sum amount (the sum assured). It's like a safety cushion for them.

Increasing Term Insurance
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This one is smart because it takes inflation into account. Your coverage amount (the sum assured) increases every year by a certain percentage. So, it keeps pace with the rising cost of living.

Decreasing Term Insurance
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Imagine you have a home loan or some other big debt. This type of term plan is designed for that. As you pay off your debts, the coverage amount decreases because your financial responsibilities are decreasing too.

Return of Premium Term Insurance
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With this plan, if you outlive the policy term, you get back all the premiums you paid over the years. It's like getting a refund, but it's only if you're alive at the end of the term.

Convertible Term Insurance
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This one is flexible. You can start with a basic term plan and later convert it into a more comprehensive life insurance policy, like an endowment or whole life plan. It's like upgrading your insurance.

Term Insurance with Riders
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Think of riders as add-ons to your term plan. You can customise your policy by adding riders for things like critical illness, accidental death, or disability. They provide extra protection for specific situations.

Group Term Insurance
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Sometimes, employers offer this to their employees as part of the employee benefits package. It covers a group of people under a single policy, and the premiums are usually lower.

Joint Term Insurance
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This is for couples. You and your spouse can be covered under one policy. If either of you passes away, the surviving spouse gets the benefit. It's a way to ensure financial security for the family.

Term Insurance for Single Parents
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This is specially designed for single parents. It ensures that your child's financial needs are met if something happens to you.

How to Buy ACKO Life Flexi Term Plan 
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The process to buy ACKO Life Flexi Term Plan is simple and straightforward. 

Note: This is a generic process; the exact steps can vary depending on the chosen plan and other details. 

How much Term Cover do I need? 
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Buying term insurance is a long-term commitment you make. Calculate your life coverage with the ACKO insurance calculator and get accurate premiums and life insurance.

Check Here to calculate your term cover

What is a Term Insurance Calculator?
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You want to make sure your family is financially secure if something happens to you. But you need to figure out how much coverage you need or how much it will cost. That's where a Term Insurance Calculator comes in.

In simple terms, a Term Insurance Calculator helps you determine how much insurance you need and how much it will cost. It's like a virtual assistant that takes the guesswork out of protecting your loved ones financially.

Then, the calculator does some quick maths and gives you an estimate of how much you'll pay for the insurance each month or year. It also tells you how long the coverage will last (usually a specific number of years).

10 Things That Influence Your Term Insurance Premium at ACKO
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Here are some of the factors that can affect the premium of your ACKO Life Flexi Term plan:

Age
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Your age plays a big role. The younger you are when you buy a term insurance policy, the lower your premium will be.

Health status
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Your health condition matters a lot. Insurance companies may ask you to undergo a medical check-up. If you're healthy, you'll likely get a lower premium. But if you have health issues, your premium may be higher.

Lifestyle choices
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If you smoke or drink alcohol, it can increase your premium. These habits are associated with higher health risks, so insurance companies may charge more to cover those risks.

Policy Term
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The length of your insurance policy also affects the premium. Longer-term policies often have higher premiums compared to shorter ones.

Sum Assured
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This is the amount of money your family would receive if something happens to you. If you want a higher sum assured, your premium will be higher too.

Rider Benefits
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Some policies offer extra benefits called riders, like critical illness or accidental death coverage. Adding these riders will increase your premium, but they provide additional protection.

Occupation
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Your job matters too. Risky jobs, like working in construction or mining, can lead to higher premiums.

Hobbies
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If you have a risky hobby, like skydiving or racing, it can also increase your premium. Insurance companies consider your lifestyle when setting the rate.

Gender
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In some cases, your gender can affect your premium. Historically, women have had lower premiums because they tend to live longer and have fewer health problems, but this gap is narrowing.

Rising Costs
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Inflation and other economic factors can also impact premium rates over time. Prices can go up as the cost of living increases.

7 Tips to Choose the Best Term Insurance with the Right sum assured option
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Choosing the best term insurance plan in India is like picking the perfect pair of shoes – you want something that fits your needs just right. Here's a simple guide on choosing the best term insurance plan with the right sum assured for your family.

1. Assess Your Financial Responsibilities: Start by listing your financial responsibilities. Consider things like outstanding loans, your family's day-to-day expenses, children's education, and any other financial commitments you have. This will give you a rough idea of how much money your family would need to maintain their lifestyle and meet their future needs if you're not around.

2. Estimate Future Expenses: Think about your family's future needs. For example, if you have young children, you'll want to ensure enough money for their education and other important life events. If you have a spouse who depends on your income, calculate how much they would need to cover their living expenses.

3. Factor in Inflation: Remember that the cost of living tends to rise over time due to inflation. It's a good idea to factor in inflation when estimating future expenses. What might seem like a sufficient sum today may not be enough.

4. Consider Existing Assets and Savings: Consider any savings, investments, or assets your family can use in case of an emergency. Subtracting these from the required Sum Assured can help you determine a more accurate figure.

5. Think About Your Budget: Your budget is crucial in choosing the right Sum Assured. Ensure the premium you'll pay for the term plan comfortably fits your budget. You want to avoid straining your finances by going for a sum that's too high.

6. Compare Quotes: Get quotes from different insurance companies and compare their offerings. Look at the premiums they charge for the Sum Assured you need and the features and benefits of their policies.

7. Review and Update Regularly: Life circumstances change, so it's essential to review your term plan and the Sum Assured periodically. If you have significant life changes, like getting married, having children, or buying a new home, consider adjusting your coverage accordingly. With ACKO Life Flexi Term Plan, you can easily change your policy through the ACKO app.

9 Documents Required for Term Life Insurance Claim Process
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Here is a list of documents you may need to file a claim. 

15 Basic Term Insurance Terms You Should Know
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Term Insurance
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A type of life insurance that provides coverage for a specified period,  known as the "term."

Premiums
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The regular amount agreed to paid (monthly, quarterly, half-yearly or annually) by the policyholder.

Insurer
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The policy provider that accepts the risk and pays for losses during the policy term.

Policy Term
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Total duration of financial protection and benefits.

Insured Person/ Life Assured
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Person covered under the policy.

Nominee/ Beneficiary
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Person selected by the policyholder for the benefits.

Policyholder
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Person who buys the policy and pays premiums.

Maturity Benefit
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Amount paid by the insurer when the policyholder outlives the policy term.

Death Benefit
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Amount paid to the nominee if the policyholder passes away during the policy term.

Sum Assured/ Coverage
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Amount the insurer pays during a claim.

Riders
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Add-ons for extra protection, like Accidental Death or Critical Illness.

Grace Period
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A window/time to pay premiums after the due date before the policy becomes inactive.

Lapse
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Premiums are not paid, and the policy is not revived within the grace period, leading to a loss of coverage and no payout for beneficiaries.

Free Look Period
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A window/time the insurer gives to the policyholder to review and cancel the policy without surrender charges.

Underwriting
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The evaluation process insurers use to check your health, lifestyle, and other factors to determine your premium and application approval.

Why buy term insurance online from ACKO?
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Here are a few reasons why buying a term plan online is a better idea than buying the plan offline.

Convenience
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Shopping online for term insurance is as simple as ordering your favourite food or clothes from the comfort of your home. No need to visit an insurance office or meet with agents. You can do it anytime, anywhere, at your own pace.

Cost-effective
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Online term insurance plans are often more affordable because there are no intermediaries or agents involved. You can compare quotes from different companies easily and choose the one that fits your budget.

Transparency
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When you buy online, you can see all the details and terms clearly on the website. No hidden fees or confusing jargon. It's like reading a book with no fine print.

Quicker Process
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Traditional insurance can be time-consuming with paperwork and meetings. Online, you can complete the process faster, sometimes even in a matter of minutes.

Multiple options at your fingertips
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You have a wide range of options online. You can customise your term insurance plan to suit your needs - choose the coverage amount, policy duration, and add riders like critical illness or accidental death coverage.

No Pressure
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Online buying means no pushy salespeople trying to upsell you. You can take your time to understand the policy and make an informed decision.

Instant Quotes
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With a few clicks, you can get instant quotes from multiple insurance companies. It's like getting multiple recommendations from friends without having to ask them.

Secured transactions
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Reputed insurance websites use encryption and secure payment gateways to protect your personal and financial information. So, your data is safe.

Frequently Asked Questions (FAQs)
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Here are some common questions about Term Plans in India.

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What is the eligibility criteria for buying Term Life Insurance in India?

Most insurance companies require the policyholder to be a citizen or resident of India, be of a certain age (usually between 18 and 65 years), and have a stable income source.

How much coverage should I opt for in my Term Life Insurance policy in India?

You should consider factors such as your income, expenses, debt, and future financial obligations, such as children's education or mortgage payments, when determining the coverage amount.

Can I renew my Term Life Insurance policy in India?

Most Term Life Insurance policies in India come with a renewable option, which allows you to renew the policy for another term after the initial term expires. 

What happens if I outlive my Term Life Insurance policy in India?

If you outlive your Term Life Insurance policy in India, the policy will expire and you will not receive any payout.

Is buying term insurance a good idea?

Yes, buying term insurance is a good idea because it offers financial protection to your loved ones if something happens to you. It's affordable, and the premium you pay is for pure insurance, so there's no investment component. This means you get a high coverage amount at a low cost.

How much does term insurance usually cost?

Term insurance in India can cost as little as a few hundred rupees per month, but it depends on factors like your age and health. To get an exact price, compare quotes from different insurance companies. It's a smart way to protect your loved ones financially if something happens to you.

What is the best age to buy term life insurance?

Buying term insurance early is a good idea as most people are young and healthy. Thus, their premium is low. So, now is the right time to buy a term insurance plan. 

Do term insurance premiums go up every year?

Term insurance premiums go up every year because the older you get, the higher the risk, and the higher the cost to insure you.

How to Calculate Term Life Insurance Premiums?

To calculate term life insurance premiums in India.

-Decide how much coverage you need.

-Choose the policy term (how long you want to be covered).

-Assess your age and health.

-Get quotes from different insurance companies.

-Decide on the premium payment frequency (monthly or annually).

-The insurance company calculates your premium based on your details.

-You can add extra coverage options (riders) if needed.

-Review the cost and policy details, then purchase the policy. Be honest about your health for accurate coverage.

Do term insurance plans offer tax benefits?

When you pay premiums for your term insurance, you can get a tax deduction under Section 80C of the Income Tax Act. This can help you save money on your income tax. Just remember to check the specific tax rules and limits that apply to your policy and situation.

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.

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