Accident Sickness Unemployment Guide
What would a Accident Sickness Unemployment (ASU) policy cover?
Accident Sickness Unemployment (ASU) is designed to provide you with financial protection. In the event you are unable to continue working because:
Have lost your job through no fault of your own;
Become ill and are too sick to work;
Injured and unable to work.
You will usually receive a proportion of your income for up to 12 months. This can be used to help cover your monthly outgoings.
This is different to Mortgage Payment Protection Insurance (MPPI) and Payment Protection Insurance (PPI). As they will only cover your repayments on a specific debt (mortgage or loan, for example).
What is not likely to be covered by ASU Insurance?
All types of insurance are different. When you buy an ASU policy it’s important to find out whether any exclusions apply to your cover.
First and foremost it’s better to be honest. If you have any reason to suspect that you might be about to lose your job. It is vital to be aware that any ASU policy you buy may be invalid if you purchase it with the knowledge that you may lose your job.
Insurance companies are careful to investigate customers’ circumstances before authorising pay-outs. If it seems that you have deliberately tried to insure yourself in anticipation of redundancy you will probably find it impossible to claim.
Waiting Times and Claims
Most ASU policies come with a waiting period designed to prevent fraudulent claims. This might mean that if you are unable to work within a few months of taking out an ASU policy you won’t be eligible for a pay-out. Even if you were 100% honest with your insurer when setting up your cover.
If you are able to make an ASU claim. It’s likely you will have to wait at least a month before receiving a pay-out. The waiting period that comes with your policy is something else to look out for when researching the products on offer from different ASU providers.
ASU policies can be time limited. You might find that any pay-outs under your policy will cease after 12 months.
If you are aged over 65, are self-employed or have been in your job less than six months. You may also find that it’s harder to buy ASU cover.
Also don’t forget to find out which medical conditions are limited or excluded under any ASU policy you might take out.
It is not unusual for back problems and conditions such as stress to be excluded. These are among the most common causes of absence from the workplace. Pre-existing medical conditions will also be excluded from your cover and you will be required to declare these when taking out your ASU policy.
How can I compare Income Protection policies?
The best way to make sure you get good value for money when buying ASU is to compare a range of insurance policies from different providers. You’ll be able to look at how much each policy costs, as well as what it covers, before making a decision. By using an FCA regulated broker like Protect Income Insurance to search all of the UK providers, can help you find the best policy for you. Our free no obligation quote service is very easy to use and will help to narrow down the best Income Protection available.
