Acko Life Insurance Review: Should You Trust a New Insurer in 2025?

Acko Life Insurance Review: Should You Trust a New Insurer in 2025? You’ve probably seen Acko’s quirky ads or used their app for motor insurance. Now, they’ve launched a term insurance plan that promises low premiums, paperless onboarding, and flexible coverage. On paper, it looks like a solid choice for young, digital-first buyers. But life insurance isn’t like buying a new phone or booking a ride. It’s about long-term trust, and that’s where most people hesitate. At Ditto, we’ve helped over 7 lakh Indians choose the right life and health insurance. And when newer players like Acko enter the scene, our advisors dig deep to review the fine print, compare features, and check what works and what’s missing. So, is Acko’s Flexi Term Plan actually worth considering? Here’s our honest take.

Why Acko Life Insurance Is Suddenly Everywhere

If you’ve been online recently, chances are you’ve seen Acko Life Insurance pop up on your feed, whether it’s through cheeky ads featuring Munna Bhai and Circuit, viral influencer collabs, or slick Instagram reels targeting Gen Z. Acko isn’t just launching a new product; it’s launching a full-blown campaign to change how young Indians think about life insurance.

However, targeting young audiences hasn’t stopped Acko from raking in the big bucks. In FY 2024–25, it clocked ₹63.64 crore primarily from group life premiums, even before launching its first retail term plan.

Having said that, we also realise that bold marketing isn’t a replacement for trust, especially when it comes to insurance. And that’s precisely where concerns begin: there’s no historical data available on Acko’s claim settlement track record, and its general insurance arm was recently fined ₹1 crore by the IRDAI.

Given the circumstances, is purchasing Acko life insurance really worth it for you?

To address that question, we reviewed ACKO’s Flexi Term Plan like we do any insurer: by breaking down what’s real, what’s missing, and whether the plan can stand up against established giants.

Heads up: It takes an average person up to 5 hours to read and analyze a policy and 10 hours or more to compare different plans and decide.

We propose a better alternative: a 30-minute FREE consultation with Ditto’s certified advisors. We have a spam-free guarantee and will never push you to buy a plan. Don’t delay—we have limited slots daily, so book a quick call here before they run out.

How New Is Acko in the Life Insurance Game?

Founded in 2016 by Varun Dua, Acko quickly gained popularity in the motor and health insurance space with its paperless, direct-to-consumer approach, backed by giants like Amazon and Accel. Its seamless digital experience and competitive pricing helped it stand out in a crowded market.

Building on that success, Acko entered the life insurance space in 2023 after receiving IRDAI approval. While the ambition and financial backing remain strong, the life insurance arm is still in its infancy. And that’s where the challenge lies. Despite the promise, Acko’s individual life insurance product lacks publicly available claim settlement data, making it hard to judge how well the company will deliver when it matters most.

So, how does Acko’s newness translate into the product itself?

What Do You Get with Acko’s Flexi Term Plan?

Now that you’re aware of Acko’s ethos as a company, let’s dive right into the plan that prompted us to write this article. 

To understand a term plan effectively, we must first examine its fundamental features. Why? Because if the basics aren’t covered, what good are bells and whistles?

Feature	What It Means for You
Digital-First Setup	100% paperless onboarding and servicing, no agents, no paperwork, everything online.
Annual Sum Assured Flexibility	You can increase or decrease your life cover in ₹25L blocks every year after 3 years.
Term Flexibility	You can increase the policy term once a year (up to age 70) and decrease it after 5 years.
Free Will-Writing	Get estate planning support through a third-party partner at no extra cost.
Death Payout Options	Choose how your family gets the claim: lump sum, monthly income, a combo, or rising monthly payouts.
Age Limits	Entry: 18–65 years; Policy ends at 70 years.
Premium Payment Frequency	Only annual premium payments are permitted. No monthly or quarterly options are available currently.

In short, ACKO’s Flexi Term Plan checks most of the fundamental boxes, namely, digital convenience, flexible sum assured, and customisable payout options. There’s also the ability to tweak your coverage and policy term annually, which is a genuinely useful feature, especially for younger buyers with evolving responsibilities.

That said, limitations like the lack of monthly payment options and a fixed exit age of 70 might be deal-breakers for some. Overall, these aren’t just flashy add-ons; they offer meaningful flexibility if used wisely.

In short, Acko’s Flexi Term Plan offers digital convenience and annual flexibility in coverage and term, but lacks monthly payment options and ends at age 70; a mixed bag for modern, younger buyers.

What’s Lacking in Acko’s Flexi Term Plan

At Ditto, we like to be upfront about what’s missing, especially since leaving out important details may jeopardise your family’s future. Here’s what you should keep in mind before considering Acko’s Flexi Term Plan:

What's Missing in Acko’s Flexi Term Plan	Why It Should Matter to You
Terminal Illness Cover	Acko doesn’t offer a feature that pays out early if you’re diagnosed with a condition that's likely fatal within 6 months.
Claim Track Record	There’s no reliable public data on Claim Settlement Ratio (CSR), Amount Settlement Time (ASR), or complaints.
Market Scale	Most of Acko’s current business is from group plans, not retail policies like this one.
Aggregator Listings	Not yet listed on popular comparison sites. This makes it more challenging to compare features and prices.
No post-sales/claims support	No agents, no middlemen. While this helps cut costs, it also means no handholding during post-sales issues or claims.

Some of these drawbacks, like a small market scale or low aggregator visibility, are expected from a new player. But when it comes to life insurance, claims matter more than campaigns. If a strong claim track record is a priority for you (as it should be), Acko may not be the safest bet, at least not yet.

Curious about better alternatives? Check: Top Term Plans for 2025

What Add-Ons or Riders Are Available?

ACKO’s Flexi Term Plan offers a handful of optional riders that can be added to your base cover. While the list isn’t extensive, it does include some useful features. Let’s break them down:

1) Accidental Death Benefit (ADB) Rider

If the policyholder passes away due to an accident, this rider ensures the nominee receives an additional payout equal to the base sum assured.

For example, if your policy has a ₹1 crore cover, your nominee would get ₹2 crore in case of accidental death: ₹1 crore from the base policy and ₹1 crore from the rider.

At Ditto, we usually advise against opting for this rider. Why? Because accidental deaths are already covered under standard term insurance. We’ve seen many users overlook this detail and end up paying extra for a benefit they already have.

A smarter move? Simply increase your overall sum assured. It’s simpler, more cost-effective, and avoids layering your policy with unnecessary add-ons.

2) Accidental Total and Permanent Disability (ATPD) Rider

If the policyholder meets with a serious accident that causes a total and irreversible disability, like losing both limbs or eyesight, this rider steps in with a lump sum payout. That money can help cover medical expenses, lifestyle changes, or even replace lost income. Plus, the best part? You don’t have to worry about future premiums. They’re waived off, so your policy stays active without adding any financial stress.

3) Critical Illness Rider

This rider covers 21 serious illnesses, including cancer, stroke, kidney failure, and major organ transplants. Once diagnosed (after a 90-day waiting period), you receive a fixed lump sum payout, no matter how much your treatment costs.

Like the ATPD rider, this one also includes a waiver of premium benefit, which means you won’t have to pay any more premiums after the claim.

4) Waiver of Premium Benefit

Built into both the ATPD and Critical Illness riders, this benefit ensures that all future premiums are waived if the rider is triggered. It helps keep the policy in force without financial strain during difficult times.

Here’s another area where Acko falls short compared to some established players:

No Auto Cover Continuance or Instant Payout on Claim Intimation

Acko’s Flexi Term Plan doesn’t allow policyholders to defer premium payments for a year during financial hardship without losing coverage. It also doesn’t offer an instant payout when a claim is filed.

Apart from that, some term plans in the market provide an upfront amount as soon as a claim is reported, helping families handle immediate expenses. Others even keep a part of the cover going for the spouse or kids.

Ditto’s Verdict: Acko’s rider set is basic but functional. You get the essentials: accident cover, disability support, and critical illness protection with premium waivers. But that’s about it. There’s no terminal illness cover, no instant payouts on claim filing, and no provision for delaying premium payments.

We often tell first-time buyers that while these riders can help you slightly beef up your term cover, they’re not a substitute for comprehensive protection. If claims are your #1 concern, especially during emergencies, you might want to explore plans that offer more robust benefits like terminal illness payouts, auto cover continuance, or early claim settlements. These features can make a real difference when your family needs immediate financial support.

So, if you’re just looking to beef up your term cover slightly, these riders can help. However, suppose you're seeking more comprehensive protection, particularly with features that activate during emergencies or provide long-term support for your family. In that case, you may need to look elsewhere or opt for a more feature-rich plan.

To summarise, Acko’s rider options are practical and straightforward, covering accident, disability, and critical illness with premium waivers. However, they lack advanced features like terminal illness cover, instant claim payouts, or auto cover continuance, which some competitors offer.

Who Should (and Shouldn’t) Consider This Plan?

Term insurance isn’t one-size-fits-all. Acko’s Flexi Term Plan may suit certain profiles better than others. Here’s a quick filter to help you decide:

Go for Acko if:

• You’re under 35 and buying term for the first time:The plan is designed for younger, digital-first buyers, with premiums that are competitively priced. But here’s the thing: Most term plans are affordable if you buy young. So it’s worth comparing Acko with established insurers that offer stronger claim histories at similar prices.
• You prefer app-based insurance & DIY management:Acko’s 100% paperless journey and app-first ecosystem make it convenient if you want to manage everything yourself. However, nearly all top insurers today offer digital onboarding, e-KYC, and app servicing. So, this is no longer a unique advantage.
• Flexibility matters more than bells and whistles:You can increase or decrease your sum assured or policy term annually, which is handy if your life stage or goals change. That said, many legacy insurers offer life-stage benefit riders, increasing/decreasing term options, and the ability to tweak your coverage with add-ons, and often come with stronger policy depth.

Our Ditto’s advisors say, “Acko works well if you’re in your 20s or early 30s and want a simple, flexible cover. But if you’re thinking long-term, say, buying insurance after marriage or for your kids, you’d be better off opting for plans with stronger track records.”

Avoid Acko if:

• You want a proven claim track record: Acko Life is new, with no public data on how claims are handled. If trust and reliability are key, this could be a red flag.
• You need a terminal illness cover or a comprehensive policy: The plan lacks terminal illness coverage and offers a minimal rider set. It may not be enough for complex financial needs.
• You want insurer stability over innovation: Acko is a bold new player, but if you prefer tried-and-tested insurers with decades of life insurance experience, this might not be the one for you.

Quick Summary: Pros and Cons

Pros	Cons
Affordable for young buyers.	Acko does not offer an early payout if you’re diagnosed with a terminal illness.
Annual flexibility built in. You can increase or decrease your life cover or policy term each year.	No reliable claims data is available yet.
Free will-writing services are a useful add-on that helps with estate planning.	On a low scale compared to legacy insurers, Acko has just ₹64 crore in life premiums.
The entire process, from onboarding to servicing, is paperless, agent-free, and designed for app-first users.	The plan lacks depth in areas such as rider options, payment frequency, and health-linked benefits.

Ditto’s Verdict: Should You Buy Acko’s Flexi Term Plan?

If you're in your 20s or 30s and value tech-first convenience, flexibility, and low premiums, Acko’s Flexi Term Plan is a solid pick. It suits those who prefer a DIY, digital experience without agents or paperwork.

But for long-term peace of mind, especially around claims, Acko’s lack of track record is a concern. It’s still new in life insurance, where trust builds over decades.

Our take: Acko is promising, but better suited for early adopters than cautious buyers. For now, we recommend established insurers for reliable, long-term protection.

To wrap it up, Acko’s Flexi Term Plan may appeal to younger, digital-savvy buyers seeking flexibility. Still, its lack of claim history, limited riders, and missing features like terminal illness cover make it less ideal for those prioritising trust, stability, or comprehensive protection.

Why Consider Buying Through Ditto?

Still unsure what to buy? At Ditto, our IRDAI-certified advisors decode jargon, compare premiums in real-time, and flag all hidden conditions—all at no cost to you. Book a quick call, and we’ll map out the best route to the protection your family requires. No spam, no misleading, and no obligatory purchase. This is why customers like Tanmay below love us:

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Conclusion 

Acko Life Insurance is bold, digital-first, and affordable, but still very new in a space where trust takes time. If you're young and want simple, flexible coverage online, Acko's Flexi Term Plan is a good place to start.

But if you value claim history, terminal illness cover, and proven reliability, a more established insurer might suit you better for now. Acko shows promise, but it’s not the right fit for everyone just yet.

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