There are different forms of short term income protection which will cover you for different circumstances.
Your cover can be more or less comprehensive depending on the policy you choose.
Short term income protection policies include:
- Accident and sickness only
- Unemployment only
- Accident, sickness and unemployment
Accident and sickness only
With this policy type you’ll be covered if you cannot work to due illness or injury only.
If you become unwell and too ill to work, you can make a claim on your policy (unless your illness is pre-existing).
If you suffer an accident, either at work or outside of work, that leaves you too injured to work you can make a claim.
If you lose your job you won’t be able to make a claim for unemployment with this policy type.
Unemployment only
If you choose this policy type you’ll only be able to make a claim for unemployment.
Your unemployment must be through no fault of your own in order for you to be able to make a claim.
If you’re dismissed, choose to leave your job or take voluntary redundancy you won’t be able to claim.
If your employer makes you redundant, and you didn’t know about it at the point of application, you can make a claim.
You won’t be able to make a claim if you can’t work due to illness or injury with this policy type.
Due to the effects of the current Coronavirus pandemic, most providers are currently not offering unemployment cover to new applicants.
Accident, sickness and unemployment
This policy types offers the most comprehensive cover as you’ll be covered for illness, injury and unemployment.
This means that if you’re too ill or injured to work or you lose your job through no fault of your own, you can make a claim.
Due to the effects of the current Coronavirus pandemic, most providers are currently not offering unemployment cover to new applicants.
The best policy for you will depend on what you want to cover.
For example, if you already have a life insurance policy with critical illness cover you may just want some additional protection in the event of unemployment.
If you have no other forms of cover in place, and it’s not within your budget to take out multiple policies, you may want more encompassing cover.
While we can’t compare income protection quotes for you at Reassured we can compare quotes for critical illness cover (either combined with life insurance or standalone), which pays out if you’re diagnosed with a serious illness and unable to work.
Read our full income protection vs critical illness cover guide.