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