Does Income Protection Cover Redundancy

Article published on 23rd June 2011

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This is a very common question for many people when thinking about financial protection in today's world. Policies for Redundancy, Accident or Sickness Cover and Income Protection are now readily available.

When people are looking for financial protection there is often confusion by all the policies available in the market and this can cause people to take out policies that do not suit their needs.

Worse still, people can choose a policy that ticks the right boxes for what they want, but may not be suitable for their needs. This can result in a policy being paid for that may never pay a claim.

This article addresses one point that often causes confusion, does income protection cover redundancy?

Income Protection

Traditionally, Income Protection was referred to as Permanent Health Insurance (PHI) by Insurance companies. Most Income Protection policies give you a monthly payout when you are unable to work for an extended period of time, due to a long term illness or disability.

This policy does not cover you for Redundancy and may not be suitable for your needs if you want unemployment/redundancy cover.

Income Protection policies usually pay out claims until a chosen retirement age, this makes the cover perfect for self employed people and individuals will little or no sick pay.

Accident, Sickness and Unemployment (ASU)

This type of Insurance is designed to help people over a shorter term of income loss. If you lose your job through Redundancy, Accident or Sickness this type of policy is designed to help you pay your regular bills, loans and mortgage payments.

This policy does not provide financial security beyond one to two years, it usually does not cover any pre-existing medical conditions and premiums are subject to review at any time.

The advantage of this cover is that it offers redundancy insurance which is a major concern for many people especially in today's economic climate.


With so much job insecurity today many people are worried about how they would be able to maintain their standard of living if they were made redundant or were too ill to work.

The financial protection industry has a range of different policies to help give you peace of mind. It is often just a case of finding the right one for your needs.

Now you have a better idea of two of the different Insurances available for financial protection the next step is easy!

Just follow the links below to get an instant quote for Income Protection or Accident, Sickness and Unemployment, alternately you can call one of industry trained specialists for impartial advice and quotes.

Get An Income Protection Quote Now!

Get Your Accident, Sickness and Unemployment Quote Now!

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