I am concerned about dismissal: can I apply for unemployment insurance while on leave?
I have been on leave since March and it has been extended to October – but I am afraid my employer will make me redundant at that point.
I have all normal insurance – life, car and home etc., but I don’t have anything that protects my finances if I get fired or get sick.
Can I apply for unemployment insurance while on leave or is it too late? And is there insurance to protect my finances if I get sick from the virus?
Can I apply for unemployment insurance while on leave or is it too late?
David Vickery, insurance advisor to Cavendish Online, said: This is a great question and something that has been asked by many customers since the leave scheme in March.
Of course, people are thinking about ways to protect their income and maintain their standard of living if they become unwell and long-term sick.
You can still request income insurance from a handful of insurance companies, even if you are currently on leave.
When it comes to accident, sickness and unemployment coverage, insurers currently do not accept applications for the ‘unemployment’ part of these policies, but you can apply for accident and health insurance through a select number of providers.
You indicate that you are afraid that your employer will fire you in October when the leave scheme ends.
In these turbulent times it is understandable to have such concerns and wonder what impact this would have on your insurance.
The important thing to know is that many income protection policies have a minimum benefit guarantee that provides a financial safety net for people with a reduced income.
Normally, income insurance policies pay up to £ 1,500 each month if you are not working when a claim is made – so you would still have valuable protection even if you were fired.
Keep in mind that this monthly benefit may vary by insurer, so always check the policy conditions carefully.
Since the blockade, young people have increasingly sought income protection
Will Kirkman of This is Money replies: The number of people who want to take out insurance to protect their finances has surprisingly increased since the start of the block.
Income protection pays off if you are unable to work due to illness. As David noted above, this policy is still available even to workers made redundant.
However, keep in mind that income protection policies have what is known as a ‘deferred period’ which means they will only pay out after you cannot work for a certain period of time.
Most policies have one- to three-month extension periods, so they’re unlikely to pay out if you’re only absent for a few weeks because of the coronavirus, but they should cover you for long-term illnesses.
As mentioned above, insurers currently do not accept applications for the ‘unemployment’ part of accident, sickness and unemployment coverage.
These policies still cover you for accidents and illness, but not because you are fired.
As the impact of the coronavirus continues to develop, insurance policies are changing, so it’s more important than ever to check what you’re actually covered for when taking out a policy.
Talk to your broker about this or if you’re buying directly, ask your insurer to clarify what you’re actually insured for.