Life insurance needed if no mortgage and employer offers death in service benefit??

[maxiflump1]

I'm am going to speak with a proper financial advisor but just wondering if anyone could guide us in the right direction in the meantime.

We are in a very fortunate position in that we have just managed to pay off our mortgage due to some inheritance. We both work in the public service and both have a death in service benefit that pays out a significant amount if we were to die. Do we also need separate life insurance? I think we probably need to look at critical illness/loss of limb cover but can we do this separate to life insurance? We have one Ds (3) and another baby on the way so need some protection if one of us was to fall very ill.

Thanks!

You can get just critical illness cover without life insurance.

If you were to move jobs, would the death payout be invalid?

Thanks @BakerBear. Yes I think if we moved jobs it would change but no plans for either of us to go anywhere for the foreseeable future (both been with relevant public sector bodies for 15+ years)

How much is the payout though?

I have life insurance that pays out 425k.

It will pay off our mortgage and leave 100k left

Both schemes pay out £100k in event of one of our deaths and we have no mortgage.

Could you survive on one salary? How long would 100k last if you used it to pay for childcare to allow the surviving parent to keep working? My advice would be that the last thing you want to worry about is money if you are widowed. If you can afford more life insurance then buy it. Definitely consider critical illness insurance. Also have you looked into pension benefits for surviving spouse in your current jobs?

not strictly necessary, but advisable.
talk to the advisor, there are lots of options.

and what if you lose your job?

Depends in part on whether you can afford premiums versus how much it would pay out. If you are young and healthy premiums will be very cheap.

You are not paying for a mortgage anymore so paying £20 out a month could be a worthwhile investment.