Best Redundancy Insurance from £3 a Month

by Simon Carter on 8 Nov, 2012

More people than ever are protecting themselves and their families in case they are ever made redundant. You may not want to think about it, but in the tough economic climate, unemployment and redundancy figures are through the roof and if your income suddenly stops, you may not be able to provide for your family.

So What’s the Lowdown?

Of course, the cost of coverage varies wildly based on your income, your age and how much of your salary will be paid out to you. We’ve had a look at the best redundancy insurance and received a number of quotes based on the UK averages – a 40 year old worker earning £25,000 a year.

What Do I Get?

No insurer will cover you for 100% of your salary. The best we could find was with Active Quote who will pay out 70% of your income (around £1,000 a month on a £25,000 salary). That assumes a maximum salary of £180,000 and insists that you have held the policy for one year.

Best Redundancy Insurance from £3 a Month

Who’s The Cheapest?

As noted above, the amount you pay is based on a number of factors but in our search of the average worker, the cheapest insurers were Helpucover who offered the average worker a policy for £35.49 for a year. This policy is great for the average worker but only pays up to 60% of earnings and won’t insure anybody who earns more than £30,000 a year.

Similar cover could be found with Columbus Direct, Barclays and Lexelle who all came in under £40 for a year.

Are They the Best?

In all walks of life, the cheapest is rarely the best and if you define ‘the best’ cover as the one that offers you the most flexibility then you should definitely take a look at Best Insurance. Their insurance also only covers 60% of your salary but with an unlimited salary cap and no minimum term before pay out, they certainly offer the most dextrous option. Our quote with Best Insurance was just £42.90 which is only a few pounds more than the absolute cheapest.

I’m On a Lower Income

If you are on a lower income then you should steer clear of the higher income policies as their premiums are higher. We couldn’t get a quote for our average worker but British Insurance and iProtect both have affordable policies for those who earn under £20,000.

About the Author

Simon Carter

Simon Carter is a respected finance writer who contributes regularly to sites in the UK and the USA. He is an expert in personal finance, insurance and corporate finance. Outside of the financial world, Simon is an authoritative voice on marketing and retail.