Best Insurance has reintroduced a standalone unemployment insurance policy.
The firm revealed its new policy with six-month and 12-month benefit options will be available to brokers via its Best Insurance portal, offering a flexible option to meet increasing client needs.
For the past five years – following its removal as a standalone product during the Covid-19 pandemic – unemployment insurance was only available as part of its wider accident, sickness and unemployment (ASU) policy.
Ian Sawyer, commercial director at adviser Howden Life & Health, said: “We continue to see strong demand for income protection and unemployment cover as people look for ways to safeguard their finances in an uncertain job market.
“A 13% rise in company insolvencies in England and Wales, combined with increasing employer National Insurance costs, is not only limiting job opportunities but also suppressing business expansion.
“With fewer jobs in circulation, those facing redundancy are finding it takes longer to secure new employment, making the financial impact of an income shock more severe. So we welcome the new standalone unemployment cover options launched by Best Insurance.
“The key is understanding what protection is available and ensuring it aligns with personal circumstances—so financial stability isn’t left to chance.”
The Best Insurance Unemployment Insurance ensures anyone working in full time employment for more than 16 hours a week in the UK qualifies for coverage based on their earnings, ensuring financial stability in case of job loss.
Benefits are linked to earnings, while premiums are determined by age and benefit level. For example, a 25-year-old seeking £2,000 per month in coverage can secure a policy starting at just £40.20 per month.
Research by Best Insurance has shown that young people, especially Gen Z prefer lower benefit periods which also makes the product more affordable. In response to this, Best launched a six-month benefit period option in addition to the 12-month option.
Kesh Thukaram, co-founder at Best Insurance, said: “Research from the FCA suggests that 30% of UK adults have no savings, and with unemployment levels on the rise, financial protection to cover job loss is more critical than ever.
“Our standalone unemployment insurance provides policyholders with tax-free monthly payments if they lose their job through no fault of their own. This support helps ease financial worries, allowing them to focus on what truly matters—finding the right job.
“With an unemployment protection policy, essential expenses like mortgage or rent payments, energy bills, loan repayments, and even groceries are covered, offering peace of mind during difficult times.”
In October 2024, the Best Insurance broker arm started offering customers the choice of purchasing insurance policies entirely via WhatsApp. So, as well as being available through brokers, the new unemployment cover will also be available directly to consumers, via phone, the website, and via WhatsApp.
Best Insurance added it will also continue to offer unemployment cover as part of its existing ASU policy.