Compare unemployment insurance

If you took out your unemployment insurance before the COVID-19 pandemic began, you should still be protected and able to make a claim. Just make sure you check your policy wording carefully, looking for any exclusions listed.

After the deferred period specified in your policy, your insurance provider should credit you for any income missed during this period. From then on, you’ll receive monthly tax-free pay-outs. 

The monthly pay-outs are normally an agreed percentage of your income – often between 50% and 60% of your monthly salary.

Alternatively, insurance providers may pay out a certain percentage on part of your income and a different percentage on the rest.

Unemployment insurance typically pays out a percentage of your income – usually between 50% to 60% of your monthly salary. Depending on your insurance provider, you may be able to receive a higher percentage of your salary up to a certain amount – say £50,000 – then a lower percentage on anything above that. 

It’s very unlikely that you’ll be able to cover 100% of your income, so you may need to top up with savings or tighten your belt until you’re earning again.

If your claim is successful, you’ll begin to receive payments as soon as the agreed deferred period has ended. The monthly payments will continue up until you find another job or when the claims period comes to an end.

You can buy unemployment insurance if you’re either full-time employed or you work part-time for at least 16 hours a week.

If you’re self-employed, you can buy unemployment insurance, but the circumstances in which you can claim are quite different from those of employees. 

You can’t buy unemployment insurance online from us if you’re self-employed, but it’s worth speaking to an adviser if you’re considering this type of cover. 

Find out what income protection is available if you’re self-employed

Unemployment cover usually stipulates an exclusion period from the date you first take out your policy, during which time you won’t be able to make a claim. This is to stop people taking out a policy if they find out they’re likely to be made redundant soon. The length of the exclusion period varies among policies but is typically between 90 and 120 days. 

Unemployment insurance doesn’t cover you if you quit your job or get fired due to misconduct, fraud or dishonesty. You also won’t be able to claim if you accept a voluntary redundancy package. 

If you’re thinking of buying accident, sickness and unemployment cover, it’s worth checking if it will cover you for any pre-existing medical conditions. Some policies might not. To that end, it’s also important to be completely honest when taking out cover. Insurance providers are unlikely to pay out if they believe you withheld or falsified information when taking out your policy.

If you’re thinking about buying this kind of policy, you’ll need to think about the level of cover you’d need. Consider whether you need to protect:

• your mortgage
• loan or debt repayments
• your wages.

If you’re an employee, your employer may already provide some cover against accidents and illness. Find out what you’d receive if you were to be made redundant, so you know roughly how long you could last before needing some financial help.

Many people who buy unemployment insurance also buy life insurance. This product is designed to provide a large sum of money to your partner and/or children if you were to die.

It’s easy with our comparison service. Just fill in a few details about yourself and whether you’re interested in covering your mortgage or your income. We’ll then list your quotes in price order, with the cheapest at the top.

Price is a big consideration, but it’s important to make sure you get the level of cover you need too. By comparing a range of quotes, you’ll find the protection that’s right for you at a price that works with your budget.