Accident, sickness and unemployment insurance is a short term income protection policy that replaces your income for up to 12 months should you be unable to work due to accident, sickness or involuntary redundancy. Unemployment protection insurance can also be brought as a standalone product, as can accident and sickness protection.

How does Accident, Sickness and Unemployment Insurance work? 

Should you be unable to work due to an accident, prolonged illness or involuntary unemployment, your accident, sickness and unemployment cover will pay you a tax free monthly amount for a pre-defined period. This monthly benefit is usually up to 50% of your income.

Accident, sickness and unemployment cover quotes will usually only pay out for 12 months, even if you are unable to return to work after this time.

Why would I need Accident and Sickness Protection?

It’s impossible to predict the future, and whilst you may be fit and healthy now anyone could fall sick and be unable to work. People suffering long term sickness can apply for employment support allowance (ESA), but this may not be enough to maintain your current lifestyle. An accident and sickness protection insurance quote will give you 12 months of tax free benefits to help you concentrate on getting better.

Why would I need Unemployment Insurance?

In an ideal world, everyone who gets made unemployed would be able to find another job straight away. But according to the Office of National Statistics more than 800,000 people in the UK have been out of work for more than 1 year following redundancy.

Unemployment insurance can be bought as a standalone policy or alongside accident and sickness cover. Unemployment insurance policies will give you the financial support for 12 months to find a new job and get back on your feet. Some unemployment insurance quotes also offer a free back to work service, giving you practical advice tailored to your individual circumstances.

What could Accident, Sickness and Unemployment Cover be used for?

Accident, sickness and unemployment insurance can be used to replace your income- whether it’s safeguarding your rent payments, covering your utility and council tax bills, or even covering your monthly food costs.

However, some accident, sickness and unemployment cover UK policies are linked directly to mortgage payments or loan payments:

  • Payment protection insurance (PPI) simply meets the cost of a specific debt, preventing you from defaulting. This is often the most expensive method of protecting a debt.
  • Mortgage payment protection insurance (MPPI) would usually be paid out to you directly. You would then be responsible for meeting your mortgage payments.

If you’d like to know more on how we may be able to help, please get in touch.


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