ASU – Short Term Income Protection and Unemployment Cover
Accident, Sickness and Unemployment (ASU) policies will also protect a person’s income against illness or injury. However, the main point of difference is that it will also protect a person’s income if they were made redundant by their employer. Some ASU policies will also allow you to choose whether you want to receive benefits for accident and sickness only, unemployment only or all three.
ASU benefits are usually payable for a maximum of 12 months, which is much shorter then Permament Health Insurance. However, some will pay the benefit for up to twice this, it all depends on the insurer. With ASU you are able to choose the amount of benefit you would like to receive within certain limits for the maximum amount. The premium will be calculated as a percentage of the amount of monthly benefit you would like to receive and hence the higher the amount of cover you would like the higher the associated premium costs
ASU policies will only allow a singular claim if you use the maximum claim period at which point the policy will be canceled, meaning you need to re-apply to set up a new policy. You do not have the option of ‘inflation proofing’ such a policy. The benefit, once chosen, is fixed and if you wish to increase it then you must apply again for a new policy with a new benefit.
Financial Expert Mortgages offers the best advice in the UK to find which insurance policy fits your financial shortfall should the need arise. Our adviser will compare our panel income protection UK providers and find you the best income protection product to suit your needs.