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Term Insurance Plan : Buy Best Term Insurance Policy Online in India 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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Term Insurance

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Term insurance can be a slightly complex concept to understand. So let us try to make it simple. Imagine term insurance as a kind of financial safety net, kind of like a shield that protects your loved ones if something unfortunate were to happen to you. It's like having a backup plan for life's uncertainties.

You, the policyholder, pay a regular amount of money to an insurance company, in this case ACKO. This is called a premium, and you usually pay it monthly or annually. In return, the insurance company promises to provide a big lump sum of money to your family or beneficiaries if you were to pass away during the term of the policy.

Now, here's the key thing about term insurance: It's pure and straightforward protection. It doesn't come with any investments or savings features like some other insurance plans. Instead, it's like saying, "If something happens to me during this period, make sure my family gets financial support."

Term insurance is an excellent choice for many people because it's usually quite affordable, especially when you're young and healthy. It's a way to ensure that your family won't struggle financially if you're not around to provide for them.

Reasons to Buy Term Insurance Online in 2024
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Here's why you should consider buy a Term Insurance Plan online in 2024

Financial Security
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Life is unpredictable, and we can't foresee what might happen. Term insurance ensures that if something unfortunate happens to you, your family won't struggle financially. It provides them with a lump sum amount (the sum assured) to cover expenses like daily living, education, and even outstanding loans.

Affordable Premiums
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Term insurance is one of the most affordable types of life insurance in India. You pay a small amount regularly (the premium), and in return, your family gets a significant payout if you pass away during the policy term.

Tax Benefits
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Another perk is that you can get tax benefits. The premiums you pay are tax-deductible under Section 80C of the Income Tax Act as per the tax regime you opt for. Plus, the payout your family receives is usually tax-free under Section 10(10D).

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Term insurance plans are flexible. You can choose the coverage amount (sum assured) based on your family's needs and your budget. You can also decide how long you want the coverage to last.

Peace of Mind
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Knowing that your family will be financially secure if something happens to you provides peace of mind. You can go about your daily life without worrying about their future.

Who should buy a Term Insurance Plan from ACKO?
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Buying a Term Insurance plan is a practical option for everyone who can afford to pay a premium. This plan ensures the financial security of your family. However, there are a few people that must secure their family’s finances in case something unfortunate happens. Here’s a list.


Family Dependents
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If you have people who rely on you financially, like a spouse, kids, or ageing parents, term life insurance can be a good idea. It helps ensure that even if you're not around, they can still manage financially.


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If you're the one who brings home the bacon, term life insurance is important. 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 that your family doesn't get burdened with them.


Single Parents
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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.


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 an inheritance or financial legacy for your heirs, term life insurance can help ensure they receive it.


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.

How does a term life insurance plan work at ACKO?
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The working of a term life insurance is quite simple. Let’s break it down for you.

You Buy a Term Insurance Plan
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You start by choosing a term insurance plan from an insurance company in India. You pay a regular premium for this plan, which is like a small amount of money you give to the insurance company.

Coverage Period (Term)
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You also pick a "term" for your insurance plan. This is like a time frame during which the insurance will be active. It could be 10, 20, 30 years, or more. Depending upon the terms and conditions of the insurance company.

What Happens if Something Happens to You?
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Now, let's say something unfortunate happens to you during the term you chose. It could be an accident, illness, or anything that leads to your passing away. Your family, who you mentioned as beneficiaries when you bought the plan, will receive a lump sum amount from the insurance company. This is called the "death benefit." It's financial help to your family during a tough time. They can use this money to cover expenses like paying off loans, daily living costs, your children's education, and more.

Which are the different types of Term insurance Plans available in India?
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Term plans are designed to provide financial safety to your loved ones as per your unique needs. Here is a list of different types of Term Plans available in the Indian market.

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 choose the best Term Insurance Plan?
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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 are some tips on choosing the right term insurance plan.

Know Your Needs
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The first step is understanding what you need. Term insurance is all about providing financial security to your loved ones if something happens to you. So, consider factors like your age, income, family size, and future goals. Think about how much money your family would need if you were no longer around to support them.

Coverage Amount
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This is also called the 'Sum Assured.' It's the amount your family will get if something happens to you. Aim for a coverage amount that can take care of your family's expenses, like daily bills, loans, and education for your kids. A good rule of thumb is to aim for 10-15 times your annual income.

Choose a suitable policy term
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How long do you want the insurance to last? Some policies can go up to 40 years or more. It should ideally cover you until your retirement age when your family might be less dependent on your income.

Opt for useful riders
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Some policies come with extra benefits called 'riders.' These can cover things like critical illnesses, accidental death, or disability. Think about whether you need any of these extras.

Online vs. Offline
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You can buy term insurance online or choose to visit an insurer’s branch office in person. Online plans are often cheaper because there are no agent commissions. Additionally, with online insurance you receive a lot of services claim tracking.

Compare Quotes
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Don't settle for the first option you find. Get quotes from multiple insurance companies and compare them. This will help you find the best deal.

Read the fine print
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Don't skip the policy document. Read it carefully to understand all the terms and conditions. If you have questions, ask the insurance company for answers.

Pay the Premiums in time
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Premium is a sum of money you pay regularly to keep the policy active. Make sure it's affordable and fits into your budget. Remember, term insurance is a long-term commitment, so choose the sum assured of your plan wisely.

Review the plan periodically
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Life changes, so should your insurance. Review your policy every few years to make sure it still meets your needs. You might need to increase coverage if your income or family size grows.

Disclose things honestly
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Be completely honest when applying for the policy. If you hide any information or provide false details, it can lead to problems when your family  needs to claim.

What are the factors that affect Term Insurance premium rates at ACKO?
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Here are some of the factors that can affect the premium of your ACKO Flexi Life Insurance Plan.

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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.

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

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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.

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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.

Tips to choose the best Term Insurance with the right sum assured option
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Here's a simple guide on how to choose the best term insurance plan with the right sum assured for your family.

Assess Your Financial Responsibilities: Start by making a list of 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.

Estimate Future Expenses: Think about the future needs of your family. For example, if you have young children, you'll want to ensure there's 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.

Factor in Inflation: Remember that the cost of living tends to rise over time due to inflation. So, 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 in the future.

Consider Existing Assets and Savings: Take into account any existing savings, investments, or assets you have that your family can fall back on in case of an emergency. Subtracting these from the required Sum Assured can help you determine a more accurate figure.

Think About Your Budget: Your budget plays a crucial role in choosing the right Sum Assured. Ensure that the premium you'll be paying for the term plan comfortably fits within your budget. You don't want to strain your finances by going for a sum that's too high.

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

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 the ACKO Flexi Benefit, you can easily make changes to your policy through the ACKO app.

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.

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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.

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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.

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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.

What is a Term Insurance Calculator?
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Imagine you want to buy life insurance in India. You want to make sure your family is financially secure if something happens to you. But you're not sure how much coverage you need or how much it will cost. That's where a Term Insurance Calculator comes in.

Think of it like a helpful tool on a website or app. You input some basic information about yourself, like your age, gender, and how much money you want your family to receive if you pass away. It might also ask about your smoking habits and health condition, as these can affect the cost.

Then, the calculator does some quick math 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).

So, in simple terms, a Term Insurance Calculator helps you figure out 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.

What is a Term Insurance Rider?
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A Term Insurance Rider is like adding extra toppings to your pizza! In this case, it's extra benefits you can attach to your basic term insurance policy. These benefits are designed to give you more coverage and protection beyond the regular policy. Here are the riders that you can add to your ACKO Flexi Life Insurance Policy.

Eligibility criteria to buy a Term Insurance Plan at ACKO
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Here is the eligibility criteria for buying a term plan at ACKO.


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At ACKO, we offer term life insurance to people between the ages of 18 and 65. So, if you're anywhere in this age range, you're eligible to apply for term insurance.


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You generally need to have a source of income to buy term insurance. This is because you'll be paying regular premiums to keep the policy active. It's usually not a problem if you have a job, run a business, or have some form of steady income.


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Your health plays a big role in eligibility. Insurance companies may require you to undergo a medical check-up to assess your health. If you're in good health, you're more likely to pay a lower premium. But don't worry, having some health issues doesn't always mean you can't get insurance; it might just affect the premium you pay.


Lifestyle Choices
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Lifestyle habits like smoking or drinking can affect your eligibility and the cost of your policy. If you smoke or drink heavily, you may pay more for your term insurance.


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You'll need to provide the necessary documents like proof of age, identity, and address when applying for term insurance. Make sure you have these documents in place.


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Always provide accurate information in your application. Misleading the insurer can lead to problems later on, especially during the claim process.

How to file a Term Life Insurance Plan claim at ACKO?
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Claiming term insurance online through the ACKO app is a straightforward process. Here's a step-by-step guide on how to do it.

Open the app and either register for an account if you're a new user or log in using your existing credentials if you already have an account. You might need the policy number or other personal information during this step.

Once you're logged in, look for the ACKO Flexi Life Plan and click on "Claims”.

Double-check all the information you've entered and the documents you've uploaded. Once everything looks good, hit the "Submit" button.

If your claim is approved, the insurance company will process the settlement. The funds will be disbursed according to the terms of the policy, usually to the nominee or beneficiary mentioned in the policy.

Documents Required for Term Life Insurance claim process
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Here is a list of documents that you may need to file a claim. 

Here are some key terms related to term insurance

Term life insurance can be a bit confusing, and there are some common myths about it in India. Let's break down these myths and find what the reality is.

Myth 1: Term Life Insurance is Too Expensive 

Reality: Term life insurance is actually quite affordable. You pay a small premium regularly, and in return, your loved ones get a lump sum if something happens to you during the policy term. It's like buying peace of mind at a reasonable cost.

Myth 2: Term Life Insurance Has No Benefits if You Survive 

Reality: Some people think that if they don't pass away during the policy term, they won't get anything back. But that's not true. Term insurance provides financial security to your family if you're no longer around. Your peace of mind is the benefit!

Myth 3: Term Insurance is Only for the Elderly 

Reality: Term insurance is for everyone, not just older folks. In fact, it's a smart move to get it when you're young and healthy because premiums are lower. It helps protect your family's future, especially if you have dependents.

Myth 4: You Don't Need Term Insurance if You Have Savings 

Reality: While savings are important, they might not be enough to cover your family's financial needs in case of your unexpected absence. Term insurance adds an extra layer of protection to ensure your loved ones are financially secure.

Myth 5: Buying Term Insurance is Complicated 

Reality: Buying term insurance is easier than ever today. You can do it online, and many insurance companies offer simple, user-friendly processes. You don't need to go through a lot of paperwork or deal with complicated jargon.

Myth 6: It's Okay to Underinsure 

Reality: Underinsuring yourself defeats the purpose of term insurance. Make sure your coverage amount is sufficient to support your family's financial needs, including daily expenses, loans, and education.

Myth 7: Smoking Doesn't Affect Premiums Much 

Reality: Smoking significantly increases your premiums because it's a risk factor. If you quit smoking, you can reduce your premiums over time. It's a win-win for your health and your wallet.

Myth 8: You Can't Change Your Policy Once It's Bought 

Reality: You can adjust your term insurance policy if your life circumstances change, like getting married, having children, or buying a home. Insurance companies often allow you to modify your coverage.

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


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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