Why would I need life insurance as well as my death in service benefit provided by my employer?

If you’ve got a death in service benefit through your employer, you may be thinking you do not need life insurance as well. 

The level of cover set under your death in service benefit is determined by your employer and so you may want to consider whether this amount would be enough to support your loved ones should anything happen to you. Would the lump sum provided by your employer’s scheme be enough to cover debts and maintain your family’s lifestyle?

What if you left your current employment, to change jobs or retire? You no longer have that death in service benefit in place once you leave your job. While you could take out life insurance after leaving a job, it is important remember that premiums rise with age.

When getting a mortgage, it is a requirement that you have life cover in place to cover this loan and you will not have the option so assign your death in service benefit to your mortgage as circumstances can change and the term of your death in service is not guaranteed and the amount of your benefit may not cover the amount of your loan.

Therefore, it is important to take out additional life assurance to have consistent cover in place regardless of the changes that occur in your career. It is also beneficial to have this cover in place early as you can decide the level of cover that is sufficient, you can avail of lower premiums, and it can be assigned to a mortgage if required.
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You can buy life insurance anytime and keep it whether you’re working or not.