I run my own limited company and therefore don’t get any sick pay. As such, I’m looking for Income Protection insurance but I’ve noticed that these policies only cover accident and sickness. Is it possible to include unemployment insurance as well?
When looking for a policy that covers accident, sickness and unemployment it is important to be careful as most of these plans will be Payment Protection Insurance (PPI).
Income Protection (formerly Permanent Health Insurance) is a very traditional policy that typically only covers the risk of illness or injury. It is a very solid policy where it is possible to gain ‘own occupation’ protection (where you are actually covered in your current job), which is often not the case with payment protection insurance (many plans use a ‘suited occupation’ incapacity definition).
For more information please navigate to: Income Protection vs PPI
If you would also like protection against the risk of redundancy, what’s usually the best thing to do is purchase an Income Protection policy and then ‘bolt on’ separate Unemployment Insurance. This is because combined policies don’t always have the best accident and sickness protection when compared to traditional Income Protection.
If you’re self-employed or work through your own limited company, Drewberry doesn’t typically recommend that you take out Unemployment Insurance. This is because to make a successful claim on Unemployment Insurance you have to prove that you were put out of work through no fault of your own, something that can be tricky to do when you’re the boss.
Good interaction between client and advisor. Drew knew his brief; articulated and explained the issues clearly and answered questions fully. This all helped me clarify what I wanted and so we agreed on our action swiftly. I am a very satisfied client. Thank you.