Compare income protection cover

Compare income protection cover
- Compare the market with our team of experts
- Choose from long-term, short-term and guaranteed policies
- Suitable for anyone earning a full-time wage
Unemployment insurance is a type of income protection that provides a monthly income if you lose your job. We’ve looked at what it includes and how you can compare insurers and find the best policy for you.
When you buy unemployment insurance, you pay a monthly premium to an insurer and then, if you lose your job, it will pay you a monthly sum of money for a set period of time.
There are lots of different types of income protection insurance policies and it can be confusing to pick the right one.
Unemployment insurance will only cover you for unemployment under certain circumstances, and doesn’t provide cover if you become ill or you have an accident which means you can’t work. This type of cover is known as accident, sickness and unemployment (ASU) insurance.
When you buy unemployment insurance, an insurer will ask you lots of questions about your health, lifestyle and employment. From these details it will calculate how likely you are to make a claim and then charge you a set amount to pay it each month, known as your premium. You need to continue paying this every month in order to keep the policy in place.
If you are made redundant or you lose your job, you can make a claim on the policy. It will then pay a monthly sum of money, which is usually up to 65% of your usual income, for a set period of time until you find a new job or until you retire, depending on the policy.
Unemployment insurance covers you if you lose your job. Each insurer will set its own specific scenarios it covers, but in general, the following apply:
There are some general exclusions unemployment insurance does not cover. These include the following:
You can choose how long you’d like an unemployment insurance policy to last for. A short-term unemployment insurance policy will last for 12 or 24 months and is usually cheaper to buy. A long-term unemployment insurance policy can last until you reach retirement age, and is more expensive.
It can be confusing picking a type of unemployment cover because there are several to choose from. They include the following:
The amount you pay for this type of insurance depends on lots of different factors including the following:
There are some simple steps to follow to ensure you find the best policy for you.
If you lose your job, you can make a claim on your unemployment insurance, but there is a period of time you’ll have to wait until you receive the money. You will likely need to wait around six months (but this could be more or less depending on the insurer) between buying the policy and making a claim.
In 2020 we all had to think a lot more about our finances, as the coronavirus pandemic meant lots of UK workers lost their jobs.
If you’re worried your job is at risk, a policy like this could help. However, before you buy it’s important to check the small print. Some insurers may not take on new customers who want to claim for job loss because of the pandemic, so take a few minutes to read the small print if this relates to your situation.
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