Quick Overview
ACKO Life Flexi Term Plan is the flagship individual term insurance product from ACKO Life Insurance. ACKO Life received its IRDAI registration on March 31, 2023, and subsequently launched the Flexi Term Plan in September 2024. Designed as a digital-first offering, the plan focuses on simplicity, paperless processes, and flexibility and is primarily aimed at young, urban, digitally comfortable buyers.
Its key differentiator is built-in flexibility. Unlike most term plans, where coverage and tenure are fixed at purchase, this plan allows you to modify the sum assured, policy term, and premium payment term during the policy, subject to underwriting.
However, ACKO Life is still a new entrant in the life insurance space. With limited public data on claims performance, complaints, and long-term financial strength, assessing how the insurer may perform decades later remains difficult.
Key Features of Acko Life Flexi Term Plan
Flexible Sum Assured Adjustment
The plan allows you to increase or reduce your life cover in increments of ₹25 lakh once in each policy year. Any increase in cover is subject to underwriting. A reduction in the sum assured is permitted only after completing three full policy years, and the cover cannot be reduced below ₹25 lakh.
Policy Term and Premium Payment Term Flexibility
You can extend the policy term or the premium payment term once every policy year, provided the policy maturity age does not exceed 70 years. Any change is subject to underwriting and may result in an incremental premium.
Multiple Death Benefit Payout Options
At the time of purchase, you can choose how the death benefit is paid, either as a lump sum, as fixed monthly payouts, as increasing monthly payouts, or as a combination of an upfront lump sum and monthly income.
Complimentary Will Writing Service
While the policy is in force, policyholders get access to a Do-It-Yourself (DIY) digital will writing tool at no additional cost, allowing them to create, modify, and download their will as needed.
Digital First Experience
The entire journey, from buying the policy to servicing requests and making permitted changes, is designed to be handled online, with minimal paperwork and faster turnaround.
Eligibility Criteria for Acko Life Flexi Term Plan
Benefits of Acko Life Flexi Term Plan
Adaptable Coverage
As your income grows, liabilities increase, or life goals change, you can adjust your sum assured instead of buying a new policy.
No Need for Multiple Policies
Built-in flexibility reduces the need to purchase additional term plans as your financial needs evolve.
Lump Sum Payout Advantage
A lump sum death benefit generally makes more sense than monthly income options, as it provides immediate access to the full amount.
Better Control for Nominees
Lump sum payouts allow nominees to repay loans, manage emergencies, or invest based on actual financial needs.
Inflation Protection through Choice
Unlike fixed monthly payouts that lose value over time, a lump sum gives nominees the flexibility to invest and potentially grow the funds.
Optional Riders Available
- Accidental Death Benefit (ADB) Rider: Pays an additional amount if death occurs due to an accident while the policy is active. Generally not recommended, as accidental deaths are already covered under the base term plan.
- Accidental Total and Permanent Disability (ATPD) Rider: Pays a lump sum and waives all future premiums if the insured suffers a qualifying permanent disability due to an accident. It may be useful for those in high-risk occupations or with frequent travel.
- Critical Illness (CI) Rider: Pays a lump sum and waives future premiums on diagnosis of any one of the 21 specified critical illnesses, subject to waiting periods. Despite a limited illness list, this rider is recommended as it offers financial support and premium relief during major health events.
List of Covered Illnesses
Inclusions and Exclusions of Acko Life Flexi Term Insurance
Common Inclusions: Most Acko term insurance plans generally cover death due to natural causes (for example, cardiac arrest), death resulting from terminal or critical illness, death caused by natural disasters or pandemics, and accidental death.
Common Exclusions: Before choosing a plan, it’s important to know the scenarios where Acko will not honour a claim. The key exclusions are highlighted in the infographic below and are generally applicable across term insurance products.
Premium Comparison of ACKO Life Flexi Term Plan Vs. Other Insurers
Note: Premiums shown are annual without any discounts.
Why Choose Ditto for Term Insurance?
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Ditto’s Take on Acko Life Flexi Term Insurance
The ACKO Life Flexi Term Plan suits buyers looking for a simple, affordable, and flexible term plan, particularly those early in their careers. Features such as the adjustable cover, policy term flexibility, and the complimentary will-writing tool make it appealing for digitally savvy users.
However, it is still too early to strongly recommend ACKO Life for individual term insurance. The life insurance business is new, with limited data on individual term claims, scale, and long-term performance. Since term insurance is a long-term commitment, established insurers with proven claims experience and financial stability remain the safer choice for most buyers.
Note: Acko is not a partner insurer of Ditto. The information outlined in this article is sourced directly from the insurer’s website and other publicly available sources.
Frequently Asked Questions
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