Unemployment Cover

What is unemployment cover?

Unemployment cover is an insurance policy that pays you a monthly benefit if you lose your job through redundancy. It can pay up to 65% of your monthly income for up to 12 months, so you can keep up with your housing costs and household bills while you look for new work.

How does unemployment cover work?

You choose how much of your income to cover, up to 65%, and an excess period. The excess period is how long you wait after losing your job before payments start. A longer excess period usually means a lower monthly premium.

If you're made redundant, you make a claim. Your benefit is then paid every month until you're back in work or you reach the end of your benefit period.

Why is unemployment cover important?

One in ten UK adults have no cash savings at all, and a further 21% have less than £1,000 to fall back on in an emergency, according to the FCA's Financial Lives survey.

Losing your job, and the income that comes with it, is one of the most stressful things that can happen to you. Your mortgage or rent, energy bills, council tax, car costs, insurance and food all need paying whether you're working or not. Falling behind on your mortgage or rent can have serious consequences. Unemployment cover helps make sure those essentials are paid if the worst happens.

Who is unemployment cover for?

Unemployment cover is designed for people in employment who rely on their salary to pay their bills, especially if they have a mortgage or pay rent. If you're self-employed or a company director, cover may be more limited, so it's worth talking to one of our advisers first.

What isn't covered?

Like any insurance, unemployment cover has conditions. Most policies won't pay out if:

• you're made redundant during the initial exclusion period, usually the first few months after your policy starts
• you knew, or had reason to believe, that you might be made redundant when you took out cover
• you leave your job voluntarily or are dismissed for misconduct
• you're on a fixed-term contract that comes to its natural end

What is carers cover?

Carers cover is an optional extra you can add to your policy. It helps protect your income if you have to give up work to care for a loved one.

Is unemployment cover the same as income protection?

No. Unemployment cover pays out if you lose your job through redundancy. Income protection pays out if you can't work because of illness or injury. Some policies combine the two. Our advisers can help you decide which is right for you, or whether you'd benefit from both.

Why compare unemployment cover with Howden?

Comparing unemployment cover with Howden means real, qualified advisers help you find the right policy, with no fee and no obligation.

Finding the right cover can be stressful, especially when you're already worried about your job, so we make the complicated simple. We're helpful insurance people: we explain things in plain English, find cover that actually fits, and stick around long after the policy starts.

There's no fee for our advice. We were named Insurance Broker of the Decade at the British Insurance Awards 2024, and we're rated Excellent on Trustpilot with over 10,000 reviews.

Howden will give you:

• Free, impartial advice.
• Help choosing the right level of cover and excess period for your budget.
• The peace of mind that you're in good hands.
• A free review of your cover whenever life changes.