Is it time for the return of Standalone Unemployment Cover?

Why is the IPTF talking about Unemployment Cover?

At IPTF, we believe safeguarding income is not a luxury—it’s a necessity. Whether people are in full-time employment, a self-employed entrepreneur, or a gig worker balancing multiple jobs, earnings are the lifeblood that supports lifestyle, family, and future.

Traditionally, our focus has been on conventional Income Protection, covering both Short-Term needs and To Retirement planning. However, our recent collaborative report in association with Iress – The Profile of an Income Protection Customer revealed a critical gap: an underserved market of individuals whose diverse work and life circumstances leave them exposed to sudden income loss.

That insight sparked a new direction for us and we are now broadening our approach to include comprehensive solutions that go beyond traditional coverage. By exploring innovative ASU (Accident, Sickness, Unemployment) and accident-only propositions, we’re committed to ensuring that every person—regardless of their work arrangement or financial responsibilities—has the opportunity to secure the income protection they deserve.

A Brief History of Unemployment Cover in the UK

Unemployment cover was originally introduced as a dedicated means to protect individuals against the sudden loss of income when faced with job redundancy. Over several decades, it provided policyholders with a safety net during economic downturns and personal employment crises.

However, during the COVID-19 pandemic, insurers suffered unprecedented challenges. There was a dramatic shift in employment structures, which was compounded by widespread furlough schemes and volatile claims.? This led many insurers to withdraw standalone unemployment cover from the market.

Best Insurance’s New Standalone Unemployment Insurance Policy

You may have seen in the industry press recently that Best Insurance has reintroduced a standalone Unemployment Insurance policy—a shift from the past five years when it was only available as part of an ASU package. The new policy offers flexibility with 6?month and 12?month benefit options and is accessible via the Best Insurance broker portal as well as directly through phone, the website, and WhatsApp.

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Key Details

• Benefit Options: Policyholders can select either a 6?month or 12?month benefit period to best suit their needs.
• Eligibility: The policy is available to anyone in full?time employment (working at least 16 hours per week in the UK), with benefits calculated based on individual earnings.
• Pricing Example: A 25?year?old seeking ￡2,000 per month in coverage might start at around ￡40.20 per month.
• Market Context: Industry experts, including Ian Sawyer from Howden Life & Health, note a significant 13% rise in company insolvencies in England and Wales. Rising employer National Insurance costs have limited job opportunities, making income protection increasingly vital.
• Distribution Channels: In a move towards greater accessibility, Best Insurance now offers this product through traditional broker channels and directly via phone, website, and WhatsApp—making it one of the first UK policies to adopt such an omnichannel approach.

Contact them to find out more.

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