Term Insurance for Salaried Employees
Your employer's group insurance is not enough. Learn why salaried professionals need personal term insurance and how much coverage you actually need beyond your company policy.
Important: Your Company Insurance Has Limitations
Most companies provide coverage of just 1-2 times your annual salary. If you earn ₹12 lakhs, your company cover might be only ₹12-24 lakhs. Your family would need much more to maintain their lifestyle, pay off loans, and fund future goals. Plus, this coverage ends the day you leave your job.
₹12L
Your Salary
₹24L
Company Cover
₹1.5 Cr
Actual Need
Key Considerations for Salaried Employees
Why You Need Personal Term Insurance
Continuous Coverage
Personal term insurance stays with you regardless of job changes, layoffs, or career breaks. You're protected even during job transitions.
Higher Coverage Amount
While employer coverage is limited to 1-2x salary, personal policies can provide ₹1-5 crore coverage based on your needs.
Customizable Features
Choose riders, payout options, and policy terms that suit your specific situation. Employer plans are one-size-fits-all.
Fixed Premiums
Lock in lower premiums when you're young. Employer group insurance premiums increase with age and are not guaranteed.
Family Protection
Ensure your family's financial security is not tied to your employment. Your coverage continues even if you lose your job.
Peace of Mind
Focus on your career knowing your family is protected. No need to worry about coverage gaps during job changes.
Recommended Coverage by Salary Range
Recommended Cover
₹50 Lakh - ₹75 Lakh
Est. Annual Premium
₹4,000 - ₹6,000
Tips:
- Start with basic coverage
- Focus on clearing debts first
- Consider increasing cover as income grows
Recommended Cover
₹75 Lakh - ₹1.5 Crore
Est. Annual Premium
₹6,000 - ₹12,000
Tips:
- Cover all outstanding loans
- Include children's education fund
- Add critical illness rider
Recommended Cover
₹1.5 Crore - ₹3 Crore
Est. Annual Premium
₹10,000 - ₹20,000
Tips:
- Comprehensive coverage essential
- Consider increasing cover option
- Include multiple riders
Recommended Cover
₹3 Crore - ₹5 Crore+
Est. Annual Premium
₹15,000 - ₹30,000
Tips:
- May need multiple policies
- Stagger coverage based on goals
- Estate planning considerations
| Feature | Company Insurance | Personal Insurance |
|---|---|---|
| Coverage Amount | 1-2x Salary (Limited) | As per Need (₹1-5 Cr) |
| Portability | Lost when you leave job | Stays with you for life |
| Customization | One-size-fits-all | Fully customizable |
| Riders | Limited or none | Multiple options |
| Premium | Employer pays | You pay (tax benefits) |
| Claim Control | Employer involvement | Direct nominee claim |
Frequently Asked Questions
Learn More About Term Insurance
Secure Your Family's Future Today
Don't rely solely on your employer's coverage. Get a personal term insurance policy that stays with you through all career changes.