Not all income protection policies cover redundancy, but all the insurers in this comparison do. Find the cover you need for the cheapest price by completing our quotes form.

What income can you cover?

Each insurer lets you choose an income, but with the following restrictions:

  • Maximum cover: This is the highest percentage of your income an insurer will cover

  • Maximum benefit: This is the highest amount of income an insurer will cover

The maximum benefit can affect the percentage of cover you get, for example:

If you want to cover 60% of a 30,000 annual income (18,000), but an insurer has a maximum benefit of 15,000, you can only cover 50% of your income.

What else is covered?

Most policies that pay out for redundancy also pay out if:

  • You are ill and cannot return to work

  • You get injured and cannot return to work

Whichever reason you have to claim on an income protection insurance policy, you could get an income for as long as you need it, up to the end of your policy.

When will it pay out?

This depends on what you choose when you apply for a policy. You usually get two options:

  1. 1.

    Have an income paid to you as soon as you become redundant

  2. 2.

    Defer your income payout for a fixed term, e.g. 12 or 24 months

If you choose a deferral period, your premiums are likely to be cheaper. Only do this if you can afford to replace your income until your policy starts paying out.

Income protection insurance for redundancy FAQs

Q

Can I get redundancy protection if I am self employed?

A

Yes, but you will need to provide a year's audited accounts to prove your income when you apply. Compare self employed cover here..

Q

How long does an income protection policy last?

A

Most insurers offer cover up until you retire, but others specialise in shorter term cover for 12 or 24 months.

Q

Can I cover 100% of my income?

A

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.

Q

Does income protection payout if I die?

A

No, income protection only covers your income for the term of your policy. Look for a life insurance policy if you want a payout when you die.

About our income protection insurance for redundancy comparison

Q

Who do we include in this comparison?

A

We include companies from our panel that offer income protection insurance for redundancy. They are regulated by the Financial Conduct Authority (FCA).

Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.