By News18,Varun Yadav

Copyright news18

We may have come across social media posts where some global corporations talk about their comprehensive coverage they provide in case an employee passes away. This includes the family receiving a portion of the salary for multiple years, monthly allowances for children, immediate stock benefits (if any), among others.
While we feel envious of various benefits such companies provide, the reality for most people is far from modest. Do a quick math on how much financial support your family will get from your company’s life insurance coverage. If the answer makes you feel barely hopeful than being confident, then there is a need to re-look at your life insurance coverage.
The life insurance offered by employers often is a variable linked to one’s salary and may not necessarily take into account your individual family structure and needs. Let’s understand if your current employer life cover is truly enough for you and what one should do to bridge this financial gap and ensure your family is adequately protected in your absence.
Employer Life Cover: The Hidden Gaps
Your company’s life insurance might feel like a safety net, but what if it’s more like a sandcastle against the tide? When the unexpected hits, standardized coverage often may fall short of what your family truly needs. Here’s why the employer coverage may fall short:
Limited Coverage: Most employer-sponsored life insurance policies offer coverage, typically just two to three times your annual salary. That might sound decent, but in reality, it may only support your family for a few years, far lesser than what’s needed for long-term financial security.
Not Permanent: Your coverage is tied to your job. If you decide to leave the organisation, retire or get laid off, the policy coverage may disappear, leaving you completely uninsured during that period. It is also possible that the next organisation you join may have no life coverage. Even if your next employer offers a life cover, the terms or coverage may be different or limited.
No Personalization: The plan offered by your employer is typically standardized and usually follows a one-size-fits-all approach with very little scope for customization. The personalization it offers is usually very limited. You may not be able to adjust or increase your coverage or add any riders based on your individual needs and financial responsibilities. A personal term life cover gives you better control to tailor a plan that suits your unique requirements.

How a Personal Life Cover Can Help
When it comes to protecting your family, a policy tied to your job simply may not be enough. Real security comes from a plan that’s built around your life and takes into consideration your responsibilities and your future. That’s where an individual term life cover can step in, offering not just coverage, but confidence in the face of various uncertainties of life.

Death Benefit: A Financial Lifeline

We can never predict when life takes a swift turn and the unexpected happens. A personal term life cover ensures that the coverage you have is based on your needs and takes into account different liabilities and financial responsibilities. This can ensure your family receives that lump-sum payout that can help them meet their different over time. This gives your family stability and dignity, giving them the ability to continue their life in a similar manner without financial panic. From covering daily expenses to paying off loans, this benefit becomes a crucial pillar of support.

Critical and Terminal Illness Cover

A sudden diagnosis can change everything. With term life insurance, you are offered various riders that you can opt for. One such rider is critical and terminal illness cover. Under this rider, you can receive an additional lump sum amount in case you get diagnosed with a critical or terminal illness. This added layer of financial protection can help you with your medical costs and even seek better treatment options within India or abroad, without having to drain your savings or investments or relying on others.

Accidental Death Benefit: An added layer of protection

Accidents don’t come with warnings. In India, road accidents are one of the most common types of accidents. In 2023 alone, India saw over 480,000 road accidents with more than 172,000 people losing their lives. Under an accidental death benefit, if a fatal accident occurs, this additional payout ensures your loved ones aren’t left struggling.

Accidental Total and Permanent Disability

Accidents don’t just cause fatalities. It can also make you prone to various disabilities, potentially hampering your ability to earn. If you get permanently disabled due to an accident, impacting your earning ability, the accidental total and permanent disability rider can act as an added layer of financial cushion.

Customization That Fits Your Life

Unlike employer plans, individual term life policies let you choose your coverage amount, add riders for specific needs, and align the policy with your long-term goals like securing your child’s education, protecting various liabilities like home loan, car loan, and building a financial cushion for your family.
Life as they say is unpredictable. However, your family’s future doesn’t have to be. Choosing a term life insurance plan isn’t just about checking a box as part of your financial planning. It’s more to do with love and responsibility, ensuring your family can live a dignified life even in your absence. You are not just preparing your family for the unexpected. You are empowering your family to keep on living no matter what life has in store for you. And that’s a decision worth making today.

By Sabyasachi Sarkar is MD & CEO of Go Digit Life Insurance
The views expressed in this article are those of the author and do not represent the stand of this publication.