Unemployment Insurance

Unemployment Insurance is available to both the employed and the self employed.

We are able to provide policies for people who want to protect their mortgage or their rental payments in the event of redundancy and other forms of unemployment..

If you have no mortgage (or a very small one) but still want to protect yourself from being made redundant or losing your job please click here : Income Related Unemployment Cover.

Our preferred mortgage linked policy will pay out for 12 or 18 months.

You must be working at least 16 hours per week before you can apply for a policy.

All forms of unemployment are covered - the most common being redundancy.

Unemployment however does not just mean redundancy. It could be that your company relocates to a different location, and you don't want to move, or your employer feels you are missing targets or your work is not up to scratch. In these cases many policies will not pay out - however this policy usually will. In very simple terms, as long as it is considered that did not make yourself unemployed, you are covered.

However if you are dismissed because of gross misconduct, it is unlikely you would be able to claim.

Insurers will not allow claims for redundancy and unemployment to be made in the early days of the policy. This is known as the "exclusion period". If a policy is bought to protect a new mortgage, the insurance provider will normally waive the exclusion period. Our preferred policy has a 90 day exclusion period.

The exclusion period exists to prevent people who are already aware of immediate redundancy applying for unemployment insurance.

To make a claim you must be registered as unemployed with the Department of Work and Pensions.

Conditions for the self employed are covered in the section below.

We have researched the market and feel the policy we currently feature is the best policy on the market, in terms of quality and price.

We are not obliged to sell the policy of any particular company. We constantly review the policies we offer and can change them at any time.

Monthly Mortgage Payments
It is possible to protect your monthly mortgage payments, as wells as any associated endowments, mortgage linked life insurance and your buildings and contents insurance. You can also increase the sum by an extra 25%, for you to use as you wish.

The policy has a maximum payment of £2,500 per month for the employed, and £1,500 per month for the self employed and company directors.

Remember you have the choice to include accident and sickness within the insurance policy and not just cover redundancy and unemployment.

The Employed
These policies will pay out if you are made redundant or lose your job for any reason other than gross misconduct.

Examples of when the policy will pay:

Redundancy

Your company relocates but you are unable to move with them

Your company folds, you receive no redundancy

You may also be entitled to claim if your contract is terminated due to poor performance (poor annual reports, missing sales targets, etc)

You must be entirely without gainful employment and registered as available for work with the Department for Work and Pensions. You must not be receiving payment in lieu of notice.

The policy will not pay out:

If your work is seasonal and you are now “out of season”

If you are on a fixed term contract (special conditions apply)

If you resign

If you take voluntary redundancy

If you lose your job due to events that you were aware of prior to the policy start date i.e. Your company inform you that you may face redundancy, and you then apply for an insurance policy.

If you were not working for at least 6 months before becoming unemployed

If you refuse any reasonable offer of alternative employment by your employer

Platinum Perspective
If you lose your job, through no fault of your own, then you can expect the policy to pay out.

If you punch the boss on the nose, please don’t bother to make a claim!

The Self Employed
To make a successful claim if you are self employed or a company director:

You will need to have permanently ceased trading, and in the case of a company director you will need to show that the company has been involuntarily wound up.

You will not be entitled to claim if you are simply experiencing difficult times, and profits are not as good as previous years.

The policy will not pay if you choose to close the company or cease trading as one name and start again as a new company.

You must be entirely without gainful employment and registered as available for work with the Department for Work and Pensions.

Married partners working exclusively in the same business can, of course, double the benefit by each taking a policy.

Platinum Perspective
Company directors and the self employed should take unemployment cover on the understanding that it will only pay after they have done everything possible to save their business.

These policies will never pay out if:

You cease to be resident in the UK
Are involved in civil commotion, riot, insurrection or war

This page has a comprehensive explanation of how unemployment insurance works.

If you are concerened about redundancy or other forms of unemployment please read this page. We are always willing to answer any questions you have

Unemployment Insurance is available to both the employed and the self employed.