Can anyone buy unemployment cover?

Being made redundant is an incredibly stressful time – for you and any dependents that rely on your income. Savings pots (if we are lucky enough to have them) won’t last too long, so is an unemployment policy something worth considering during these uncertain times? And can anyone take out cover? We have the answers.

What is unemployment insurance?

Unemployment insurance is a form of income protection that pays out if you out of work due to redundancy. Quite simply it will give you that peace of mind if you unfortunately suffer an income shock leaving you to consider how you pay your bills (mortgage, rent, gas and electric, council tax, to name a few!).

If you have a policy and you become redundant, you’ll be paid a tax-free monthly income that starts after you’ve been off work for a pre-agreed waiting period (depending on your policy).

If you’re an employed worked worker, no matter how safe and secure you feel with your employer there is always a small risk at the possibility of losing your job. If you don’t have a big savings pot (to cover at least 3 to 6 months of monthly income) then an unemployment policy can be there to provide a much-needed safety net. Even with savings in the bank it can dry up quickly, so it’s worth finding out if an unemployment policy is something for you to consider.

When losing your job you can look to Universal Credit or Employment Support Allowance, however, even if you are eligible, often this doesn’t last long nor is it likely to make up for a loss in salary – made all the more stressful as inflation continues to rise and fuel bills are set to hit record levels in winter. Unemployment insurance can help bridge this gap and the team at A-Plan Life & Health will be able to advise you, based on your own individual circumstances, as we are all a little different!

Does it cover you for leaving a job voluntarily?

As with all insurance you cannot claim on something you have done deliberately so you can’t make a claim if you are fired, quit your job or if you volunteer to take redundancy. You also can’t buy a policy if you already know redundancies are likely in your organisation. This will all be checked before buying a policy with some eligibility questions.

Can I buy cover if I am self-employed?

If you are self-employed, you can buy cover that will pay out if you are off work, but this works slightly differently as is called ‘accident and sickness income protection’. This will pay out if you are off work with an illness or injury and off work for this reason. The team at A-Plan Life & Health can help here also, so it’s worth finding out more if this is a concern for you.

What are the main advantages of unemployment insurance for you?

It will pay you a tax-free income if you are made redundant – giving you the best chance and time to find that next rolePayouts can be up to 60% of your current salary meaning those bills will get paid and your lifestyle shouldn’t take too much of a hit in that uncertain timeProvide peace of mind for dependents whilst you are looking for that fabulous new roleCan be purchased with accident and sickness insurance in one policy meaning even more protection for an unexpected income shock

Would you like to find out more? Contact your local branch or call 0800 172 172 to find out if unemployment cover is right for you.