Accident, sickness and unemployment insurance (ASU) provides you with a short term income, equal to your most vital outgoings, if you were unable to work. We’d all like to think that our jobs and health are certain. However, the reality is that none of us can really be sure what lies around the corner.
In the current financial climate, the possibility of redundancy exists across all sectors, up and down the country. Accidents can happen and illnesses can strike at any time. Accident, sickness and unemployment plans, or ASU policies, exist as a short term solution. They are designed to bridge the financial gap in case any scenario occurs that could see you out of work, usually for as long as 12 months.
How does Accident, Sickness and Unemployment insurance work and how is it different to Income Protection?
Accident, sickness and unemployment (ASU) insurance – sometimes referred to as mortgage payment protection insurance – will provide you with an income linked to your mortgage if you fall ill, have an accident or are made redundant. For example, if your minimum monthly mortgage payment is £1,000, your monthly benefit would equal this.
Some policies will allow you to pick from the three aspects of this type of insurance – so should you only require cover for accident and sickness, sickness and unemployment, or accident and unemployment, this is a possibility. Most policies will also have a ‘deferment period’ – a period of time after the policy holder is not working before monthly payments begin. The length of time this period can last depends on the plan and provider. However, the longer the deferred period, the lower the premium.
ASU insurance differs to income protection as it insures your mortgage payments (and other important payments). Income protection insures your income, and is not linked to your mortgage or important outgoings. ASU is also designed for short term instances up to 12 months, whereas income protection can pay out benefits for years.
Why do I need accident, sickness and unemployment insurance?
If you were out of work through redundancy, illness, or injury, you may be entitled to state benefits. However, this is often modest (£92.05 a week) and can mean you struggle to meet your financial commitments . Rather than relying on savings, or in the worst cases, debt, ASU insurance can bridge the gap.
As accident, sickness and unemployment is designed to cover the most important payments such as your mortgage, it can provide a great deal of peace of mind in a difficult time. With 10 million households in the United Kingdom having no savings at all, ASU insurance can be a fantastic protection product.
Mortgages or rental costs.
Bills or regular payments.
Credit card debts.
Carry on as normal.
Car loans or finance.
How much does accident, sickness and unemployment insurance cost?
The monthly premiums of ASU insurance can vary heavily. The monthly benefit required will have the biggest impact, as this is directly linked to your mortgage or other important payments. For example, someone looking to insure their mortgage payment of £1,000 a month will have cheaper premiums than someone looking to cover a mortgage of £3,000 a month.
As with most types of insurance, your age, gender, job, desired deferred period, health and lifestyle will also have a big impact on the cost of cover. The easiest way to find out how much your perfect cover would cost would be to get in touch.
If you want to find out more, or get a free no obligation quote, fill in the form below. One of our ASU insurance experts will be in touch. Alternatively, give us a call on 0800 288 9151, or visit our contact page.
Would you like to speak to one of our consultants over the phone? Just submit your details and we’ll be in touch shortly.