Why get accident, sickness and unemployment cover?
It’s estimated that one in three Britons couldn’t afford to pay their rent or mortgage for longer than a month if they lost their job tomorrow, according to a study by Shelter. And many would struggle to keep up payments on cars, credit cards and loans. Accident, sickness and unemployment cover can help protect you if you lose your job or are unable to work.
Frequently asked questions
What are the different types of accident, sickness and unemployment cover?
Accident, sickness and unemployment insurance describes the situation you’re covered against rather than what you are actually covering. Insurance products in this area include mortgage payment protection, loan payment protection and income protection.
You can get cover for three main reasons:
- accident and sickness
- accident, sickness and unemployment
You can choose which is best for you. For example, your employer might provide great sick pay and so you will only be concerned with unemployment insurance.
Alternatively, you might be self-employed and therefore can’t make yourself redundant, so will only want insurance that covers you if you have an accident or become ill.
How much cover do I need?
You can choose a sum that represents your mortgage amount or your total bills. Our online journey allows you to cover 50% of your pay before tax is deducted (your gross pay).
How long should my policy last for?
You can choose between six months, 12 months and 24 months, but 12 months is the most common.
How does insurance impact on my sick pay?
It doesn’t. The idea of this type of insurance is to take over to help cover costs when your sick pay ends.
Sick pay can vary. Some employers will provide you with your full salary for a period of time while you are ill, with some of the better packages paying you for up to 12 months.
Otherwise, you can get £92.05 a week from your employer for up to 28 weeks if you qualify for Statutory Sick Pay (SSP).
Before you buy your insurance, you should check what your employer will pay you and for how long. This is because it will affect the waiting period before your insurance payouts start (sometimes called the deferred period) and consequently, the cost of your insurance.
If you’re self-employed you won’t have any sick pay from an employer, so you might want to consider income protection that covers you if you become ill.
What is a deferred period?
This is the time between going off sick or losing your job and being paid your insurance benefits. So, for example, your income protection payments could kick in once you’ve been off work for six weeks. The longer your deferred period, the cheaper your monthly premiums are likely to be.
How can I compare accident, sickness and unemployment protection policies?
It’s easy with our comparison service. Just fill in a few details about yourself and choose what you want to cover – your mortgage payments or your income.
Then pick the kind of cover you’re interested in – unemployment only, accident and sickness or accident, sickness and unemployment. It only takes a few minutes.
You’ll then see a page listing your quotes in price order, with the cheapest at the top. There are also different tabs you can select to see the different kinds of cover and how much they would cost.
But don’t use the price as the main selling point, as sometimes paying a little more will give you much you more cover.
What if I want to talk to someone about my insurance?
Our friendly advisers at Assured Futures understand that accident, sickness and unemployment insurance can be complicated. They’re at the end of the phone waiting to help. Just call Freephone 0808 141 1332.