Most salaried employees assume their employer-provided group life cover is sufficient. It almost never is.
The problem with employer group life cover
- Typically only 3–5× annual salary — far below the recommended 10–15×
- Cover ends the day you leave the job — no continuity
- Cannot be converted to individual cover without medical underwriting
How much cover do you need?
Calculate your Human Life Value (HLV): Annual income × years to retirement × 10–12. Also add any outstanding loans. The total is your minimum cover requirement.
Consider your EPF
Your EPF corpus provides some base financial security. You may deduct the current EPF balance from your total cover requirement, but do not over-rely on it.
Best time to buy
As early as possible. Premiums are cheapest in your 20s and 30s. A 25-year-old pays roughly 40% less premium than a 35-year-old for the same cover. Lock in low premiums while you are healthy.
Key features to look for
- Cover until at least age 65 (retirement age)
- Claim Settlement Ratio above 97%
- Online purchase (lower premium vs agent-sold)
- Critical illness rider (optional but useful)
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