Acko Enters Life Insurance Space With Launch Of Acko Flexi Term Plan

Just over two months after foraying into the automotive sector, insurtech unicorn Acko Tech has rolled out Acko flexi term life insurance plan to offer flexible coverage, allowing policyholders to adjust the amount as financial responsibilities change.

With this launch, the company aims to become a one-stop destination for all protection needs. The plan provides comprehensive coverage, offering customers financial protection throughout their lives, it said in a statement.

As per the company, the plan provides the option to modify the policy duration to fit life goals, whether for short-term or long-term protection. 

Besides, it will provide flexibility by allowing customers to switch between different payout options at any time during the policy. Policyholders can select from a lump sum, monthly instalments, or an annuity, tailoring their payouts to meet their changing financial needs, even during the claims process.

Varun Dua, founder, Acko, said in a statement, “We wanted customers to look at life insurance not as a means of investment, but as pure-play protection for them and their families. Our focus going forward will continue to be on pure-protection related products such as the term life product that we have launched recently.”

Founded in 2016 by Varun Dua and Ruchi Deepak, Acko offers insurance for vehicles, health and travel. It counts the likes of General Atlantic, Multiples Private Equity, Lightspeed, and Intact Ventures among its investors. Last year, it also launched an insurance plan for batteries of electric vehicles (EVs). 

This comes months after Acko bought digital chronic care management company OneCare to build a comprehensive healthcare ecosystem.

The company claims to have distributed insurance policies to over 78 Mn unique customers and issued more than 1 Bn policies to date. 

Acko has raised over $450 Mn in total funding from investors, including Amazon, General Atlantic and Multiples Private Equity. In FY23, the startup reported a net loss of INR 738.5 Cr, up 53% year-on-year, while its operating revenue grew 32% to INR 1,758.6 Cr.