Do you still need life insurance if you have death in service?
It is a real benefit, and it is the reason a lot of families think they are covered when they are not.
Death in service usually pays two to four times basic salary and stops the day you leave the employer. Against a mortgage and years of lost income it is a contribution rather than a plan, and it pays nothing if you survive a serious illness. Personal cover is also priced on your health at the age you buy it.
What death in service actually is
Death in service is a benefit some employers provide, usually two to four times salary, paid if you die while employed by them.
It is a good benefit. It is also the reason a lot of families are underinsured without knowing it.
The four gaps
What the multiple actually covers
| Salary | 3x death in service | Typical mortgage | Roughly what is left |
|---|---|---|---|
| £30,000 | £90,000 | £180,000 | £90,000 short of the debt alone |
| £45,000 | £135,000 | £240,000 | £105,000 short |
| £60,000 | £180,000 | £300,000 | £120,000 short |
Before any allowance for replacing income, childcare or a funeral. Illustrative figures to show the shape of the gap.
Want this checked against your own situation?
Send us the figures and we will tell you what they mean. If it is not ours to advise on, we will say who should.
Ask us a questionPrefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.
We advise on and arrange life cover, critical illness cover and income protection ourselves. There is no fee to you for our advice. If you take out a policy, the insurer may pay us a commission.
Working out the shortfall
Confirm the multiple
Ask HR. Two, three and four times salary are all common.
Check whether bonus counts
Many schemes use basic salary only, which changes the figure.
Work out the real need
Debts plus income replacement plus one-off costs.
Subtract the scheme benefit
The difference is what your own cover should be.
Check the nomination form
Death in service is usually paid under a trust, and it needs a nomination too.
The form nobody fills in
Death in service is normally paid at the trustees' discretion, guided by your expression of wish. If there is no form, they decide without you.
Update it after a marriage, a divorce, a birth or a death. It is the same issue as a pension nomination and it goes wrong in the same way.
Where you stand
- Your mortgage is more than the scheme multiple
- The scheme uses basic salary only
- You have children who are not yet independent
- You may change jobs in the next few years
- You have no mortgage and no dependants
- Your partner earns enough to run the household alone
- The scheme pays four times a high salary
- You also hold personal cover already
Check broadband before you make an offer in Service?
Broadband speeds can vary street by street in Service?, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.
Want all your bills in one?
We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.
We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.
Questions people actually ask
Do I still need life insurance with death in service?
How much is death in service usually worth?
What happens to death in service if I change jobs?
Is death in service taxed?
Who receives my death in service benefit?
How do I check broadband speed at a property in Service??
Where to go next
Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.
Want to know what the gap is?
Send us the multiple and your mortgage balance. We will do the sum and tell you what closing it would cost.
Start a conversationPrefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.
We advise on and arrange life cover, critical illness cover and income protection ourselves. There is no fee to you for our advice. If you take out a policy, the insurer may pay us a commission.