Income Protection Redundancy

If you are looking to protect your income from the risk of unemployment or more specifically the risk of redundancy then the insurance policy most appropriate to your needs may well be Accident, Sickness and Unemployment cover also known as income protection redundancy cover.

Insure your mortgage payments against accident, sickness and unemployment.

Protect up to the lesser of £2,500 or 60%
of your gross (pre-tax) earnings.

Choose a length of cover which will either pay out for up to 12 or 24 months.

Cover up to an additional 25% of your
mortgage payments for associated costs.

Type of policy - Accident Sickness and Unemployment Accident and Sickness Unemployment Mortgage payment £ per month Date of birth ddmmyyyy

Income protection insurance provides long term incapacity (sickness and injury) cover only. With so many insurance policies available in the market today it can be confusing and a great number of people buy income protection insurance mistakenly when in fact they were looking for an Accident, Sickness and Unemployment (ASU) policy.

Income protection redundancy or ASU?

If you are just looking an income protection to cover redundancy it is possible to exclude both accident and sickness from your ASU policy (leaving just the cover for unemployment). ASU policies are usually bought to cover specific payments that need to be made, such as loan repayments, and are therefore sometimes called Payment Protection Insurance or Mortgage Protection Insurance if the policy is sought to cover mortgage repayments and associated mortgage costs. These policies are a great way to protect your finances in the event of redundancy.

If you need any help or advice finding the right policy to protect your income from impact of redundancy, as insurance brokers dealing with this day in, day out we are in a great position to help, so please don’t hesitate to get in touch.

Next Steps

For general insurance information and the regulation of the market please visit the insurance section of the Financial Services Authority’s Money Made Clear website.

If in the past you have been sold an income protection policy when in fact an accident, sickness and unemployment policy would have been more appropriate given you were looking for redundancy cover you need to follow the appropriate complaints procedure with your insurer or adviser. If you are not satisfied with the result you should contact the Financial Ombudsman Service.

This entry is filed under Income Protection Guide.