Compare unemployment insurance
Compare insurance they offer to help you keep on top of bills in periods of unemployment. See how much you can save with our unemployment insurance comparison service from claimanything.com
What is unemployment insurance?
It is a type of income protection that pays you a monthly income if you lose your job. For example, you could claim on a policy and get an income until you can return to work if:
- The company you work for goes into administration
- You work for yourself and your business gets dissolved
The insurers in this comparison could pay you an income, but only if you become unemployed through no fault of your own.
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How unemployment insurance protects you
Here’s how it works. If you have bought an unemployment insurance policy and you lose your job, you will be paid a tax-free monthly income, which starts after a pre-agreed waiting period. This is sometimes called the deferred period. The longer this period is, the lower your premium, so it’s worth looking at a couple of options.
If you have chosen accident, sickness and unemployment cover, you are likely to have higher monthly payments, but you will receive a payout not only for unemployment, but if you have an accident or an illness that means you are unable to work for a certain period of time. Again there is a waiting period with this policy.
If you’re thinking about buying this kind of policy, you’ll need to look at the level of cover you would need. Consider whether you only need to cover your mortgage, loan or debt repayments or whether you might need to cover your wages as well.
If you work for an employer, you may already have some cover against accidents and illness. You could look into what you would be due if you were made redundant, so that you know roughly how long you could last before you would need some financial help. If you’re self-employed you won’t have back-up from your employer, so this kind of policy might be very important for you.
Does it only cover unemployment?
You can choose to either take out a policy that only covers unemployment, or that also covers accident and sickness. You could also find cover for redundancy.
What isn’t covered?
You will not get paid an income if you:
- Quit your job
- Get fired from your job
If you become unemployed due to misconduct, fraud or dishonesty, you will not be eligible for a payout.
Other reasons why an insurer will not pay out include:
- You gave false information when you applied
- Your claim is not covered in your policy
If you do not give accurate information about yourself when you apply for income protection, you could invalidate your policy.
Do you need life insurance too?
Many people that buy unemployment insurance also buy life insurance. This product is designed to provide a large sum of money to your partner and/or children if you were to die. A lot of people buy life cover to provide enough money to pay off the mortgage, so that their family won’t have the worry of paying for their home when they aren’t around. The funds could also be used for funeral costs, debts or support in some other way.
There are a few trigger points in life that might make a person think about buying a life policy. Buying a home is one of these, as could mean that your partner or family could inherit a mortgage free home.
Another is getting married or settling down with a partner. A third is starting a family. It can be a pretty important cover to have in place and could mean a great deal to the people left behind if you were to die.
How long does an income protection policy last?
Most insurers offer cover up until you retire, but others specialise in shorter term cover for 12 or 24 months.
Can I get income protection if I am self employed?
Yes, but you will need to provide a year’s audited accounts to prove your income when you apply.
When does it pay out?
After completing a successful claim, most insurers send you any missed income then continue to pay you monthly until you return to work.
Can I cover 100% of my income?
Some insurers could offer to cover 100% of your income, but still set a maximum amount, e.g. 100% of your income or £50,000 a year.
Does income protection payout if I die?
No, income protection only covers your income for the term of your policy. Look for a life insurance policy if you want a payout for dying.
Who do we include in this comparison?
We include unsecured loans you can get in the UK from our panel. Like other comparison sites, we make money when you click through to a product or service, or go on to purchase it after visiting our site. If you use one of our broker services, we make commission after you buy a product, but it doesn’t cost you anything extra. Our comparisons are free for you to use and you get the same or a better deal than going direct.