Unemployment, Accident & Sickness Insurance - British Insurance

Short term income protection

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Income Protection, Mortgage Protection and Loan Protection
British Insurance offers three types of cover:

Income Protection, Mortgage Protection and Loan Protection. This choice enables you to choose a policy that best suits your financial needs.

Our Income Protection can be used for a wide range of things – whether it’s safeguarding your rent payments, covering your utility and council tax bills, or even covering your monthly food costs.

On the other hand, Mortgage Protection is specifically for covering your mortgage and its related costs, such as your home insurance.

Loan Protection is designed to cover your loan repayments, and includes Life and Terminal Illness cover.

Unemployment only,
Accident and Sickness only or
Unemployment, Accident and Sickness insurance
Unemployment cover will give Income Protection in case of redundancy or other involuntary unemployment, as well as having to quit your job to become a full time carer for a member of your immediate family. Accident and sickness covers you if you are unable to work due to an accident or illness. Most of our customers choose Unemployment , Accident and Sickness cover.
Variable excesses: 0, 30, 60, 90 or 180 days
The excess period is the period after which eligibility for the monthly benefit will start if your claim is accepted. For example, a 30 day excess period means you have to be off for 30 days before you are eligible, and wait a further 30 days before you receive your first payment. Zero excess is also called ‘Back to day one’; although you have to wait 30 days before you are eligible you will then be paid back to the first day you were off work.
Benefit of up to £1,500 (£2,000 for mortgage insurance) or 50% of your gross income, whichever is less
Think about the outgoings you have each month that you cannot avoid. The benefit paid does not attract income tax, which is why there is no need to cover your full income with mortgage insurance or income insurance.
Cover period: maximum 12 months
This is a short term protection insurance, and payments are up to a maximum of 12 months.
Initial exclusion period for unemployment cover, which may be waived if you are transferring cover
The initial exclusion period of 120 days may be waived if you are transferring cover. Make sure the cover basis is the same, you have held your insurance for at least three months and there is no gap in cover.
We work with a number of insurers
The insurer you receive a quote from depends on your age and the cover you have selected. Full documentation and eligibility criteria are available during the application process. Please read it carefully.
Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

A typical monthly cost for British Insurance Income Protection is £4 for every £100 of monthly benefit. This cost is based a 30 year-old looking to receive £1,000 a month from an accident, sickness and unemployment policy, opting for back to day one cover who will pay £40 a month with British Insurance. The monthly cost is inclusive of Insurance Premium Tax at the current rate of 6%.

Eligibility
Please note that this is provided as an overview. It is important that you read the eligibility you are presented with when completing an application.
Your age is between 18 and 64
To get cover under this insurance, you have to be over 18 and under 64. If you are close to 65, cover will automatically terminate when you reach the age of 65 and any benefit payable under the policy will terminate when you reach the age of 65 if it has not terminated before that date. If you have reached the statutory retirement age, your application may be declined.
You are living and working in the UK
It is a condition that you are permanently living and in paid employment in the UK for at least 16 hours per week and eligible to register as unemployed.
Your work is permanent
You cannot apply for this income protection insurance if your work is temporary (including agency work), casual, seasonal, irregular, a period of training/apprenticeship or for a specific task.
You have worked for the last six months
You can apply for this income protection insurance if you have worked continuously for the past six months.
Maximum insured benefit
The sum insured under this policy and any other similar insurance policies must not exceed 50% of your monthly earned income before tax. If you exceed this limit benefit will be reduced.
Medical conditions
You may not be covered for any accident or sickness that occurred before the start date of my policy, and that recurs after you have bought it. Check out the policy wording, which is available throughout the application process
Contract workers
If you are a contract worker (as defined by this insurance) please read the contract worker section in the policy wording, which is available throughout the application process, carefully. The underwriters require contracts to be of a minimum set length and/or to have been renewed at least once. Furthermore unemployment will not be covered beyond the date the contract would have otherwise expired naturally and non renewal of a fixed term contract will not be covered unless specific conditions of the policy are met.
Self-employed
If you are self-employed (as defined by the policy wordings for your selected insurance) please read the self-employed section in the policy wording, which is available throughout the application process, carefully. There are additional requirements you will need to meet to support a claim, including having to involuntarily ceased to trade and advised HM Revenue and Customs of this.
Initial exclusion period
There is a 120 day initial exclusion period for unemployment or Carer Benefit. This means that you are not covered for unemployment that arises from any programme of job losses, any departmental or company re-structure, or merger with another company, announced by your employer before the start date of your policy, or within 120 days after the start date of your policy. This may be waived if you are transferring your cover from another provider.
Apply when your job is secure
You cannot apply if you are aware of impending unemployment, whether or not you have received official notification, or your employer has announced any job losses, departmental or company restructure or merger with another company.
Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

About our policies
At British Insurance, we try to get you the best possible insurance price and rates with the minimum of hassle. We provide policies from a selection of insurers. When you use our Quick Quote facility, we will provide you with the insurance policy documentation specific to the insurer matched to your age and the cover you selected. These details will also be available when you go through the application process. Please note, if the details you enter onto the application form differ from the details entered onto the Quick Quote facility, the insurer may change and so the policy documentation may also change. Please double check the policy wording and eligibility criteria before you complete your application.

Below are the main features that are included on all the policies we provide. All insurers offer a 30 day ‘cooling off’ period. If you cancel during the first 30 days of the policy, you will receive a full refund provided you have not claimed.

Cover options
Income Protection or Mortgage Protection

Income Protection allows you to cover any outgoings, whereas Mortgage Protection is restricted to covering your mortgage only. Normally, Mortgage Protection is slightly cheaper.

Excess periods
The excess period is the amount of days you need to wait before you are eligible to receive any payments. We offer 30, 60, 90 and 180 days as well as ‘back to day one’ (although you have to be off for 30 days before you can claim, you would then be paid from the first day you were off). After your excess period, there is a waiting period of 30 days before you receive your first payment.
Types of cover
You can select from three options:

Unemployment insurance only
This pays a benefit if you become unemployed or have to give up work to become a carer. Your policy documents will describe the definition of becoming unemployed or becoming a carer. In general, unemployment means that you are registered with the relevant government agency as unemployed and available and actively looking for a new job.

Accident and Sickness insurance only
This pays a benefit if you are unable to work due to accident or sickness, as certified by a doctor. Normal pregnancy or childbirth is not classified as accident or sickness.

Unemployment, Accident and Sickness insurance combined
This covers both of the above

Unemployment only cover is not available if you select a 180 day waiting period.

Benefits
The maximum benefit (the tax free amount you will get paid every month for up to 12 months if your claim is accepted) you can cover is £1,500 for income protection and £2,000 for mortgage protection or 50% of your gross monthly income, whichever is the lesser.
Incidents insurers normally do not pay out on:
Accident and sickness
There are specific restrictions with regard to back conditions, chronic conditions, stress, anxiety and depression, AIDS, HIV and pregnancy, childbirth or abortions. The policy documentation will provide you with the full details Accident and Sickness as a result of deliberate injury or alcohol, solvent abuse or drugs are not covered.

Any medical condition you already have, for instance if it is diagnosed or you sought treatment for it in the 12 months before the policy start date and the condition recurs within the 24 months after the policy start date.

Incidents insurers normally do not pay out on:
Unemployment
Please do not buy this cover if you already have been told there is a risk of redundancy.

Your claim will not be accepted if you are notified you will become unemployed or need to become a carer during the first 120 days of the start date of the policy. Beware! The 120 days are from the start date you select for the policy, not the day you buy it.

If you are transferring your Payment Protection Policy or cover from another provider, the underwriters will waive the 120 day initial exclusion period on your new policy so long as you can prove that there is no gap in cover between the old policy ending and the new one starting, and that you meet the eligibility requirements for transferring. Further details about transferring your cover can be seen in the policy wordings.

You have had to be in permanent work for 6 months. Some insurers stipulate the six months prior to the start date of this policy, some prior to the date you claim.

If you are self employed or a fixed term contract worker, cover for unemployment is provided only in certain circumstances. If you choose either Unemployment only or Accident, Sickness and Unemployment cover we recommend you read the policy wording thoroughly to make sure you are happy with the cover provided.

Voluntary redundancy, resignation or retirement are not covered.

Other information
This policy is paid by monthly direct debit. Cover operates on a monthly basis and continues for each month that you pay your premium. Cover can continue until you retire or reach the age of 65, or you or the insurer cancel. You can cancel your policy at any time by giving written instruction to the insurers/administrators and by cancelling your direct debit with your bank. The insurers must give you a minimum of 30 days notice in writing to your last known address if they intend to cancel your policy.

All claims payments will be made directly into your bank account.

All our insurers have signed up to the Financial Services Compensation Scheme (FSCS) and Financial Ombudsman Scheme (FOS).

Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.


Terms of business

Amending your policy
You will be able to amend your cover by phoning the telephone number in your policy documentation. Please note that the eligibility criteria are also applicable to amendments to your policy.
Cancelling your policy
You can cancel for any reason during the initial 30 day cooling off period and after that by giving at least 14 days notice in writing to the administrator.

Cover operates on a monthly basis and continues for each month you pay your premium. Please note that cover cannot continue after you retire from employment, when you reach the age of 65, you die or if you stop paying the premium. If you have a Mortgage Protection Policy and you no longer have a mortgage, you will need to notify the underwriters to cancel your policy.

Amendments to your policy by the insurers
Insurers have the right to review premiums and if they change they will give you at least 30 days notice in writing at your last known address.
Cancellation of your policy by the insurers
Insurers can cancel by giving you a minimum of 30 days notice in writing to your last known address.
Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

How to make a claim
To make a claim under the policies we offer is a very straightforward process. All you need to do is call the claims line number as found in your policy documents. If you cannot find it, just give us a call on 0844 346 0140 (Monday - Friday 8am – 5.30pm).
What happens next?
Depending on your cover and claim, the insurer will ask you for certain information.

For instance for Accident and Sickness claims, a confirmation from your doctor that you cannot work and details about your accident or illness.

If you have become unemployed, confirmation from your Jobcentre that you are registered as unemployed and confirmation from your last employer or your accountant that you have stopped work.

The insurer might also require evidence of your earnings or your mortgage payments.

If your claim has been accepted, payments will start in line with the excess period you selected, directly into your bank account.

Monthly cost
We calculate the cost of our Payment Protection Insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5 this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which benefits are paid out.

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FAQs

Q: Can I have joint cover?
Q: What is an excess period?
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Q: How much benefit can I insure?

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Income Protection Insurance (PPI)

Income Payment Protection Insurance will pay a tax-free monthly benefit of up to £1,500 per month, after the waiting period (ranging from ‘back to day one’ to 180 days), in case of involuntary unemployment or if you are unable to work due to an accident or sickness.

Mortgage Protection Insurance (MPPI)

Similar to payment protection cover, but restricted to cover your mortgage payments only. The maximum benefit is £2,000.

Holiday Home Insurance

From second home insurance in the UK to cover for your overseas holiday home we’ve got it covered through our UK based service through Towergate, who provide holiday home insurance to over 25,000 customers.