Accident sickness and unemployment insurance (ASU) explained
None of us know what is around the corner and involuntary unemployment; prolonged illness; or incapacity can have a serious affect on our ability to pay for those all important outgoings. It is a frightening thought and one many of us will worry about. However, the good news is that you can protect yourself financially against these unforeseen events happening – with an accident sickness and unemployment insurance (ASU) policy.
How does it work?
An accident sickness and unemployment insurance (ASU) policy does pretty much as its name suggests. It is an insurance policy that pays out in the event that you are unable to work due to recovering from an accident; prolonged illness; or due to involuntary unemployment.
Should one of these events happen, then you will get a tax free monthly amount (typically up to 50% of your gross earned income or £1,500, whichever is the smaller amount) for a pre-defined period.
This means that you will have one less thing to worry about at an already stressful time, leaving you able to concentrate on getting a new job or recovering.
How long will I receive ASU benefits for?
There are a number of accident sickness and unemployment insurance policies on the market and they often vary in terms of what they offer and the cost. (They may also come under a number of different names such as payment protection insurance and unemployment and sickness cover, to name but a few variants).
A typical policy will pay out benefits for up to twelve months, or when you go back to work, whichever event happens first. However, there are policies that pay out for a shorter term (6 months) and longer – up to 24 months.
When can I start to claim benefits?
Again, this may vary from provider to provider. Some policies will start to pay out on the 30th day of unemployment or incapacity, which means that you won’t be financially distressed for too long. However, there are other policies that have a 60 or 90 day waiting period before you can claim.
Other considerations
As mentioned before, payment protection insurance policies and what they may offer can vary so do check to see if your chosen policy will offer any additional, free features. For example, some accident sickness and unemployment insurance policies may also have the added benefit of an unemployment telephone assistance service, providing free help and guidance.
Look out for those ASU insurance policies that also offer Carer Cover as standard. This policy provides you the same benefits as if you were made redundant or became incapacitated, but will kick in if you have to give up to work to become a full time carer for a loved one.
So, if you are looking to have peace of mind for your financial future, then considering an accident sickness and unemployment insurance (ASU) policy could be a step in the right direction. It doesn’t need to cost too much, either, with some specialist protection insurance providers offering affordable cover for top quality cover.