Do I still need life insurance if I have death in service?

Usually yes. Employer cover is set as a multiple of your salary and not against what your household owes, it ends on the day you leave, and you do not control any part of it.

The three gaps

The amount
A multiple of salary is a convenient way for an employer to set a benefit. It is not a calculation of your mortgage, your other debts, the years your children still need supporting, or what your partner would need to stop working for a while.
The job change
Cover ends the day employment does, with no right to continue it. Anyone who leaves, retires or is made redundant is uninsured from that morning, often without noticing.
The control
Your employer chooses the scheme, the multiple and whether to keep it at all. None of those decisions are yours, and any of them can change.

What your own policy adds

A multiple of salary is a convenient way for an employer to set a benefit. It is not a calculation of what your household owes.

Related questions

Can I just top up the employer cover?

Some schemes offer additional voluntary cover. It usually still ends with the job, so it addresses the amount and not the gap at a job change.

Should I count death in service when working out how much I need?

Yes, for as long as you expect to be there. It is sensible to know what the position would be without it as well.

What if I am about to change jobs?

Arrange your own cover before you leave. Cover is priced on your age and health at the time you apply, and a gap between jobs is a gap in protection.

Is my partner covered by my scheme?

No. Death in service covers the employee. Cover on a partner who does not earn is regularly the most under-bought policy in a household.

Where this fits

The gap is your household's costs minus what your employer would pay. We work that out with you in an hour.

Death in service and relevant life coverGet a complimentary health check

The advisers for this subject

Sunny Bharj

Sunny Bharj

Independent Financial Adviser

Tony Springer

Tony Springer

Independent Financial Adviser

Advising through Equity & General Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Check the firm on the FCA register under number 474163.

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