Do I need insurance?

[DuaLipaSuction]

We have 2 DCs and fortunately the house is paid for.

I work for the Civil Service so DH would get a payout if I die in service, plus we have a little bit.

I've read today that I should have life insurance or income insurance if I have DC.

Do I need it?

Life insurance and income insurance are separate things. Life insurance pays out if you die (or, depending on the policy, if you’re diagnosed with a terminal condition) and would provide a lump sum which could enable your DH to e.g. leave his job for an extended period of time to support your DC through bereavement. You’ll already have death in service benefit through the CS, it’s entirely up to you whether you’d want to supplement this with additional life insurance.

Income protection insurance would provide you with a monthly payment if you became unable to work due to ill-health or disability (you can also get them for redundancy, but these tend to be the most expensive policies as for most people, redundancy is far more likely than disability.) If you rely on your income then it’s a good idea to have income protection insurance, particularly since it could also help pay for private medical treatment or additional therapy.

Thank you Comtesse for the explanation. It's been so long since we looked at personal insurance that I genuinely appreciate the explanation

At my work we have benefits that cover both death in service (x12 salary payout) and income protection in the case of illness (I think 2 years) and so I don’t pay separately for protection - so definitely worth making sure you know what your work benefits cover in full 👍