Life cover & benefits
Is company group term life insurance enough, or do I need my own term plan?
Usually you need both. Group term life, paid for by your employer, covers you with no medicals up to a limit, around the clock, worldwide. But it ends when you leave the job, and the amount is set by the employer. A personal term plan stays with you, and the amount is your choice.
In short
- Group term life is paid by the employer and needs no medicals up to the free cover limit.
- It ends when you leave the job.
- A personal term plan stays with you, at a sum you choose.
- The honest answer is both.
Group term life and personal term, side by side
| Group term life | Personal term plan | |
|---|---|---|
| Who pays | The employer | You |
| Medicals | None up to the free cover limit | Usually, depending on age and sum |
| Sum insured | Set by the employer, often a multiple of salary | Your choice |
| Where it covers | 24 hours a day, worldwide | As per the policy |
| When it ends | When you leave the job | At the end of the term you choose |
Where group term life wins
Cost and access. The employer pays, and everyone up to the free cover limit is covered regardless of health. For someone who would struggle to buy cover alone, that matters a great deal.
Where personal term wins
It is yours. It continues when you change jobs, take a break, or start a business, and the sum insured is your decision, not a multiple of a salary set by someone else. Buying it younger and healthier usually costs less, and the cover is locked in.
So is company cover enough?
Rarely on its own. Treat group term life as a strong base that comes with the job, and personal term as the cover that stays with your family whatever happens to the job. Most people are best served by both.
A note for employers
A flat multiple of salary leaves the lowest-paid employees with the thinnest cover. If something happens to them, their families get the least. Setting a meaningful minimum sum insured, alongside the salary multiple, is a design choice worth making.
Frequently asked questions
Is group term insurance enough?
Rarely on its own. It ends when you leave the job and its amount is set by the employer, so most people also keep a personal term plan.
What is the difference between group term life and term insurance?
Group term life is bought by an employer for its employees and ends when you leave. A personal term plan is bought by you, continues across jobs, and its sum insured is your choice.
Does group term life continue after resignation?
Usually not; it ends with your employment. Don't assume it can be continued or moved to an individual policy without checking with the insurer.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. No insurer or product is named or recommended. What any policy covers depends on its own wording and schedule. For advice about your situation, talk to us.