You know better than any of us whether your children need to be in school.
I completely sympathize as we are in a similar situation.
I think your concerns are realistic.
The chances of getting covid are very high for any teacher or parent whose children continue in school. It also isn't possible to shield from one's own children.
If the risks of a fatal outcome ar 1-2% then the chances of surviving are 98-99% and that is a more reassuring way of looking at it.
By the same way of looking at things, even elderly parents are much more likely to survive as an outcome. However, one wouldn't choose to take the risk, and of course, there can be long-lasting after-effects of covid , not just long covid.
Personally, I would not consider trying to climb Mount Everest, specifically because of the risk of adverse outcome or death (fatality 6.5%) The risk for me is probably in that region for covid, so I am pretty keen to avoid it!
It is not a reasonable comparison to make with the risk of a car accident, for example (1770 UK road deaths in 2018 compared with 45-60,000+ covid deaths March- October 2020)
We have had 61,469 deaths so far, and government advisers are predicting that the second wave could be even worse.
In these circumstances, a lot of parents who can home school are going to realistically look at keeping children at home, and we certainly will be considering this further, especially as cases and deaths rise and the local area teeters on going up a tier. It will be interesting to see what happens after term.
One positive way of thinking about this situation is that as a vulnerable parents who can home school, you do have enough time, education and savings to do it, and are in these respects very fortunate. Such parents are lucky to have a situation that gives us choice, even if the government is not currently making it easy for us.
You don't need to listen to people who tell you that you "have to" keep children in school. There is no" have to", it is your choice, and a choice you would be making either way with the children's best interests at heart. You are lucky to have each other and that is the important thing. Please don't feel guilty either way, it is such a difficult decision.
I'm really pleased that my children had a good experience of home schooling over the summer, and also pleased that they enjoyed going back to school. We may need to move between the two again, and it's good that both options have some appeal for them.
There is always time to make up education, you may well not be able to make good an insult to health.
Re mental health, this situation is indeed itself anxiety making.
Books on prescription reading list here, in case it's helpful reading-well.org.uk/books/books-on-prescription/mental-health#self-help
NHS anxiety site
anxiety around covid