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Income protection insurance

Protect your income against accident, sickness and involuntary redundancy and receive a monthly benefit if you are unable to work.

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Redundancy insurance

Receive a tax-free monthly benefit if you are made redundant involuntarily. Protect up to 65% of your gross income with a benefit paid for up to 12 months.

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Accident & sickness insurance

Safeguard your income if you are unable to work due to illness or injury with policies designed to cover you right up to retirement age.

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Mortgage protection insurance

Protect your family home if you are unable to work with an income protection policy designed to cover your mortgage payments and associated costs.

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Information Guides

Redundancy insurance

Redundancy insurance, also referred to as unemployment protection insurance, is a protection policy that can pay you a tax-free benefit if you are made redundant involuntarily.

ActiveQuote are specialist redundancy insurance brokers and can help you compare redundancy insurance policies online to help you find a policy that meets your budget and needs.

How does redundancy insurance work?

Redundancy insurance is an income protection policy that provides financial cover for up to 12 months following involuntary unemployment.

If you have been made redundant involuntarily you should provide your insurer with any relevant documents needed to confirm your claim to receive your tax-free monthly benefit.

Based on your policy there may be a waiting time until you can receive your first payment. Typically this waiting time will be 30 days but you can choose a back-to-day-one policy that pays you after 30 days but then back dates payments to the day you were made redundant.

You can also increase your waiting period to reduce your monthly premium, for example if you had enough savings to cover two month’s salary and you were happy to use these savings to cover your income then a policy with a 60-day waiting period may suit you better.

Why do I need redundancy insurance?

No one likes to think about being made redundant but with an average 1,300 redundancies made each day in the UK1 redundancy insurance may be worth considering.

If you are made redundant you can find yourself struggling to meet your mortgage repayments or rent payments and government support could prove insufficient.

As of April 2014, the maximum a person can claim for Jobseeker’s Allowance is £71.70 a week2 but this could be even lower, depending on your circumstances.

If you think that government support would not sustain your lifestyle and cover the costs of utility bills, council tax, internet and TV contracts and food and clothes shopping then redundancy insurance can provide peace of mind.

What does redundancy insurance cover?

When considering a redundancy insurance policy you can select how much of your gross income you would like to insure. Insurers will let you cover up to 65% of your gross annual income.

Many people take out redundancy insurance to protect:

  • Mortgage repayments or monthly rent
  • Council tax and utility bills
  • Internet, TV, phone and gym contracts
  • Food and clothes shopping
  • Maintain current lifestyle including holidays and leisure activities

Things to consider with redundancy insurance

Redundancy insurance is designed to cover an unsuspected unemployment situation such as involuntary redundancy. It is important to be aware of any exclusions regarding your unemployment insurance plan.

For most insurers, to qualify for successful claim on redundancy insurance you must:

  • Be in continuous employment with the same employer for a minimum of six months
  • Wait for a pre-agreed amount of time after you take your policy out to make a claim
  • Actively be looking for a new job whilst you are claiming
  • Have been unaware that redundancy was imminent or suspected as such
  • Be made redundant involuntary – dismissal, voluntary redundancy and resigning are not eligible reasons to make a claim

Compare redundancy insurance quotes online

ActiveQuote can compare quotes on redundancy insurance online and by speaking to a product specialist you can tailor your policy to meet your budget and needs.

Many people choose to include accident and sickness cover in their income protection insurance policy but you can buy standalone unemployment cover if you wish.

ActiveQuote are fully authorised and regulated by the Financial Conduct Authority (FCA) to answer questions and offer free advice on redundancy insurance.

1 Office for National Statistics, 2014

1 Jobseeker's Allowance (JSA), GOV.UK, 2014

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Excellent service. Explained everything in detail and really helped to find the right insurance best suited to my needs - which wasn't necessarily the most expensive. 

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Good value and the advisor was very helpful and recommended the best policy for my grandson. I would definitely use this service again and recommend to others.

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We were contacted in good time to make a knowledgable choice. We were given plenty of options with lots of information to enable us to make the right choice.

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The service I received was excellent, the staff member was very efficient and knowledgable. She went out of her way to get the best policy for me.

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Great service. I really appreciated the help provided by Active Quote to arrange health insurance. The agent was very informative and proactive. Many thanks!

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I received excellent care and attention from the first phone call till the last. Friendly, efficient and patient.

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Staff are very helpful, friendly and polite. They call back when they say they will and keep you up to date with progress. Pleasure to deal with.

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Very polite and friendly, and gave detailed explanations of all aspects of the cover. Reassuring to know that if you do have a problem there is someone you can contact.

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Friendly and efficient. Nothing was too much trouble even when i needed to make a small change, excellent service.

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The advisor was incredibly helpful and fully explained the differences between the policies. I really liked the fact that I was put under no pressure.

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