STAY PROTECTED Soften the effects of
unemployment
HOW TO REDUCE YOUR PREMIUMS
Do you receive payment in lieu of notice?
If for example your employer gives you 3 months payment in lieu of notice, you have effectively been paid 3 months in advance; you cannot therefore make an Unemployment claim during your payment in lieu period.
You could reduce your premium by selecting an excess period for Unemployment that matches your payment in lieu period. Because we uncouple the Unemployment from the Accident & Sickness you could have different excess periods for each cover reducing your premiums even further.
Do you receive company sick pay benefit?
If for example your employer provides sick pay allowance for up to 6 months
You could reduce your premium by selecting a 6 months excess period for Accident & Sickness. Because we uncouple the Accident & Sickness from the Unemployment you could have different excess periods for each cover reducing your premiums even further.
Do you have both company sick pay benefit and payment in lieu of notice?
You could make even greater savings. We uncouple the Accident and Sickness excess period from the Unemployment excess period so you can have different excess periods for both products reducing your premiums even further if both of the above points apply to you.
Do you want Unemployment Only cover?
If for example your employer provides generous sick pay allowance you may decide to restrict your search to Unemployment Only insurance. We do not supply Unemployment Only cover. Insurers often load Unemployment Only premiums so it can be cheaper to combine all three risks.
You could reduce your premium by selecting Combined Accident, Sickness and Unemployment and choosing the appropriate excess period for Unemployment and adding 180 day excess for the Accident/Sickness part. This can work out cheaper than Unemployment Only cover and you get the added benefit of Accident & Sickness cover if you need it.
Do you have a joint mortgage?
If for example you are both in full time work and have a joint mortgage i.e. you are both named parties to a mortgage agreement on your main residence. The maximum Mortgage protection you are allowed is not restricted to your percentage of the mortgage payments, each of you can insure the full amount monthly repayment in your own right.
You could reduce your premium by each of you protecting the full amount of the mortgage payment under the cheaper Mortgage protection scheme, up to 75% of your individual gross monthly income up to a maximum of £1500 per person.
If you are both in full time work, what are the chances of both of you being out of work at the same time? Use the answer to assess whether you may want to reduce the maximum amount covered or whether to take longer excess periods that will reduce your premium even further.
As Mortgage protection provides the choice of benefit periods (6 or 12 months), you could reduce your premium even further by each of you taking the 6 months option or just one of you taking the 12 months option
Please note: We do not provide joint cover as premiums are calculated according to an individual’s income, age and cover selection. Each of you are insured in your own right and assigned individual policies.
Combine both Mortgage protection & Lifestyle protection
If for example you are on a gross monthly salary of £2400 with an £800 per month mortgage. The maximum you are allowed as Lifestyle protection (co-branded as Income Protection) is 65% of your gross monthly income to a maximum of £1500 per month. With a gross income of £2400 per month you could insure the full £1500 per month under that scheme
The maximum you are allowed as Mortgage protection is 75% of your gross monthly income, to a maximum of £1500 per month. The scheme allows you to add up to 25% to your mortgage amount so with a mortgage of £800 per month you could insure £1000 per month under that scheme.
You could reduce your premium by protecting the maximum amount possible under the cheaper Mortgage protection scheme and protecting the remainder with a second policy under the Lifestyle protection scheme
It is acceptable to take out both types of cover provided the combined amounts do not exceed the product limits of.