With the implementation of numerous insurance schemes from the government and private insurance companies, the term insurance industry in India is experiencing rapid growth. The steady rise in the number of people opting for term insurance for financial security is primarily due to greater awareness of the multitude of benefits a term insurance plan has. Read on to learn more about term insurance and how it can secure your family financially.
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Most people understand how vital term insurance is to financial planning. In case of the policyholder's sudden death, a term insurance plan will provide a lump sum amount to meet various financial obligations. Go through the pointers below to learn why term insurance is a must-have investment for long-term financial security.
The most crucial reason for purchasing term insurance is that it will provide your family with necessary financial protection in case you (the policyholder) die suddenly. The sum assured will be a financial safety net and cover any financial obligations, day-to-day expenses, etc.
Peace of mind is necessary for progress in life, whether maintaining healthy family relationships or securing business deals. Having term insurance with proper coverage helps you gain immense peace of mind. Securing your family and prosperity go hand in hand.
If you have taken out loans to buy a car or a house, you know the responsibility of loan repayment and fear that if something happens to you during the loan tenure, it can become a liability for your family. Term insurance extends your family's financial support to repay the loan and protects your hard-earned assets, too.
While many expenses such as housing, loan payments, and education can be planned for, unexpected events—like the COVID-19 pandemic—can still catch us off guard. Term insurance is a wise investment for long-term financial security that protects against unforeseen challenges.
After the untimely demise of a sole earner or a loved one in a family, it may become challenging to continue in the habitual pattern of life and maintain the same lifestyle. At such trying times, term insurance can help a family by providing financial support.
You can add additional protection by opting for riders like critical illness insurance, accidental total permanent disabilities, and accidental death benefits. These riders provide an extra layer of financial protection on top of the basic term insurance plan's sum assured, helping you provide long-term financial security.
Term plans offer comprehensive coverage. If you want to choose a high sum assured in other policies, you will have to pay much higher premiums, which can become unaffordable in the long run. This affordability of term insurance plans allows you to get the best sum assured and ensure your family will have sufficient financial security in your absence.
Term insurance can be purchased at cost-effective premiums. You can leave a substantial amount for your dependents as you get considerable coverage at attractive premium rates. This allows you to safeguard your family's future without burning a hole in your pocket.
The concept of term insurance is simple: It aims to replace your income for your dependents during your absence. In the event of an unfortunate and unpredictable circumstance, term insurance ensures that lifestyle expenses and daily expenses (car, travel, etc.), children's education, and loan repayment expenses (education, home, personal, etc.) are met easily.
Here is how a term insurance plan works:
Let’s understand this more simply with an example:
Amit, a 28-year-old, has purchased a plan with a coverage of ₹1 crore for 20 years to ensure financial protection for his family. As a non-smoker, the insurance company only requires him to pay ₹620/month as a premium. In exchange for ₹620 each month, Amit enjoys peace of mind and assurance of financial protection in case of his untimely death.
There are various types of term insurance plans in India, including Regular Term Insurance, Increasing Term Insurance, Decreasing Term Insurance, Term Insurance with Riders, Convertible Term Insurance, Return of Premium Term Insurance, and Joint Term Insurance. Therefore, it can be daunting to choose the one that fits your requirements just right.
Follow this simple guide on how to choose the right term insurance for financial security:
Any decision regarding a financial product like insurance should start with assessing your financial responsibilities. This can include things like loans and the family's day-to-day expenses.
The second step is evaluating future events that will require considerable financial strength, such as your children's higher education, marriage, etc. You should also consider increasing healthcare expenses as your spouse gets older.
Take into account any assets you have, including savings accounts, fixed deposits, investments of various kinds, etc., that your family can use in emergency situations. That way, you can subtract the amount and get a more accurate sum assured.
Include the rate of inflation in your calculation so that you can predict future expenses more accurately. The rising cost of living will require a slightly higher sum assured.
After establishing the future requirements, it is time to align them with your budget. If they do not align, you will not be able to sustain paying even the apparently affordable premiums.
Get quotes from several top insurance providers and compare their offerings. If the premium they charge against the coverage or sum assured you need seems acceptable, consider their features and benefits.
Periodically reviewing your sum assured is crucial to successfully managing life's new changes and challenges. For example, if you experience significant life changes, such as planning a baby or buying a house, you may consider changing the coverage accordingly.
If you talk to anyone with some experience with term insurance, he/she will advise you to opt for a plan when you are young. This lets you enjoy the low premiums and ensure long-term financial security most affordably.
ACKO Life Flexi Term Plan is ideal for providing long-term security as the minimum entry age is 18 and the maximum entry age is 65 and provides coverage up to 70. The convenience of managing the entire policy lifecycle digitally adds to its appeal, particularly for individuals who prioritise ease of use and adaptability. Here are the other reasons that make the ACKO Life Flexi Term Plan a unique one:
| Feature | ACKO Flexi Term Life Insurance Plan | Traditional Market Offerings |
| Protection Against Future Premium Hikes | No higher premiums for increasing coverage in the future—rates are locked from the policy start. | Future coverage increases often increase premiums based on current age and rates. |
| Inflation and Age Impact on Premiums | Protects against premium increases due to inflation or age over time. | Premiums typically rise with age and inflation over the policy’s term. |
| Long-Term Cost Savings | Can save up to 40% on premiums over time, assuming historical price trends continue. | Premium increases over time lead to higher overall costs. |
| Customisable Coverage and Policy Duration | Coverage and Policy Duration can be adjusted easily to match life changes (marriage, children, etc.). | Limited flexibility to change coverage or policy term—often requires purchasing a new policy. |
| Digital Experience | Fully digital, with seamless online adjustments for personal details, Sum Assured, riders, etc. | Adjustments often require offline processes, paperwork, or branch visits. |
| Policy Adjustments | Modifications like adding riders, updating nominees, and changing payout modes can be done via the Acko app. | Adjustments are typically more time-consuming and less convenient. |
| Free Will Creation | Includes a feature to create a will, which helps to outline asset distribution clearly. | Generally, they do not offer integrated will creation services, requiring separate arrangements for estate planning. |
| Riders | Offers valuable riders to enhance protection | Riders may be provided depending on the plans. |
You can buy the ACKO Life Flexi Term Plan online simply and hassle-free. Follow these steps to get your term plan now:
Go to the official ACKO website or download the ACKO app.
Click on the ‘Products’ menu and choose ‘Life’.Select the ACKO Life Flexi Term Plan.
Select the ACKO Life Flexi Term Plan.
Fill out the form and answer all the questions honestly to become eligible for the plan and help ACKO determine the premium.
Pay the premium online.
Download the plan from the app or receive it in your registered mail ID.
Whether you are a sole breadwinner, business owner, single parent, working woman, debt holder, or young and healthy people who want to safeguard their family in their absence, term insurance is the way to go. Consider the above points and opt for a plan that suits your needs.
Here are some of the frequently asked questions about term insurance for financial security:
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Reviewed by Vaibhav Kumar Kaushik 
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