Protecting your Mortgage with Redundancy Insurance

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Life is unpredictable and there is not much worse than losing your job. Redundancy insurance, also known as unemployment insurance or income insurance, can guarantee income should you find yourself in this unfortunate situation.

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How does Redundancy Insurance work?

Redundancy insurance will pay you a monthly sum after you have been made redundant or lost your job through no fault of your own in order to support you during your search for employment.

In order to claim this insurance you will probably need to provide evidence of income and expenditures. You will also need to provide proof of address and identification.

Types of Unemployment Insurance

There are a few different types of insurance policies to protect you should you lose your job.

STIP: Short-term income protection insurance will replace a proportion of your income (usually around 50% to 60%) for a fixed period of time (usually around 12 months). The payments will continue until you find new employment or the agreed policy duration comes to an end.

MPPI: Mortgage payment protection insurance will cover your mortgage payments after you have lost your job for around 12 months. Read our guide on MPPI here.

PPI: Payment protection insurance will cover loan or credit card repayments should you find yourself without a form of income. Typically payments start around 3 months after your earnings stop.

When Should you Think about Buying Redundancy Insurance?

You should start thinking about buying unemployment insurance if you know that redundancy is a possibility, but you haven’t already been given notice. It is unlikely that you will be able to purchase cover if you know you will be made redundant.

Another reason to consider purchasing is if you know that you will be unable to find employment within 3 months of losing your current job.

You should only start thinking about taking out this insurance if you are fully aware of the exclusions.

What isn’t Covered by Redundancy Insurance?

Before buying unemployment insurance, it is important to understand what is not covered in the policies.

Unemployment insurance will not cover you if you willingly quit your job or if you are fired. You will also normally not be covered if you voluntarily take redundancy.

You will only be covered for reasons out of your control.

How much will I Pay for Redundancy Insurance?

Unemployment insurance rates will depend on a number of factors, such as your employment status and your earnings, as well as your health and the duration of cover you wish to purchase.

Take a look at our quote generator to get your personalised redundancy insurance quote!

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Company Information

The Mortgage Genie Limited is Registered in England and Wales with Company Number 9803176. The Mortgage Genie Limited is an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let.


Your initial mortgage consultation is always free of charge. Depending on the complexity of your mortgage there may be a fee for our mortgage advice and arrangement service, which will be discussed and agreed before you make a mortgage application. A typical fee is £293 and will never be more than 1% of the mortgage amount.