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.

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.

Unemployment insurance FAQs

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 get income 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

When does it pay out?

A

After completing a successful claim, most insurers send you any missed income then continue to pay you monthly until you return to work.

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 for dying.

About our unemployment insurance comparison

Q

Who do we include in this comparison?

A

We include companies from our panel that offer income protection insurance that covers unemployment. 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.