Term Insurance for Salaried Employees (2026)

Key takeaways

Employer cover (often 1–3× salary) is a fraction of the 10–15× you need.
It vanishes when you switch or lose your job — exactly when you may need it.
Buy a personal term plan early; treat employer cover as a bonus.

The employer-cover illusion

Most companies offer group term cover of 1–3× your annual salary — sometimes a flat ₹5–10 lakh. Against a real need of 10–15× income plus loans, that's a drop in the bucket. Worse, it ends the day you resign, retire, or get laid off.

Not sure how this applies to you? A free call with Vijay Singh Rana sorts it out in minutes — book here.

What salaried employees should do

Buy a personal term plan sized to your actual need (use our free calculator), with a term running to retirement. Keep the employer cover as a free top-up, not the foundation. And review the personal plan at every promotion, loan or child — your cover need grows with your salary.

Tax angle

Term premiums qualify for deduction under Section 80C (old regime) up to ₹1.5 lakh — a nice bonus, not the reason to buy. Buy for protection; take the tax break as a side benefit.

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Vijay Singh Rana — HDFC Financial Advisor · IRDAI & AMFI Registered

Frequently asked questions

Is my company's group insurance enough?

Almost never — it's typically 1–3× salary versus a 10–15× need, and it ends with the job.

When should I buy my own plan?

As early as possible — premiums are lowest when you're young and healthy.