Accident, sickness and unemployment insurance
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Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
29.10.2024
Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
29.10.2024
What Is Accident, Sickness and Unemployment Insurance?
Accident, sickness and unemployment insurance (ASU) is a type of policy designed to protect your income if you are unable to work due to illness, an accident, or if you become unemployed. It ensures that you receive regular payments to cover essential expenses such as your mortgage, rent, and bills while you’re out of work. This form of work insurance offers a valuable safety net during difficult times, allowing you to focus on recovery or finding new employment without worrying about immediate financial hardship.
What Does Accident, Sickness and Unemployment Insurance Cover?
ASU insurance generally covers three key areas:
- Accident: If you’re injured and unable to work, your policy will pay out a percentage of your income.
- Sickness: If you fall ill and are unable to work, sickness insurance ensures you receive a regular payout while you recover.
- Unemployment: If you lose your job through no fault of your own, such as redundancy, ASU provides a financial cushion.
Policies often include sick pay cover, ensuring you have a backup plan in case you’re unable to claim statutory sick pay. The payout period typically lasts for 12 months, but longer-term cover is available.
What's Not Covered by Accident, Sickness and Unemployment Insurance?
While accident, sickness and unemployment insurance offers broad protection, there are several key exclusions to be aware of:
- Pre-existing conditions: Illnesses or injuries you had before taking out the policy are generally not covered.
- Voluntary unemployment: If you leave your job voluntarily, most ASU policies will not pay out.
- Misconduct-related unemployment: You won’t be covered if you’re dismissed due to gross misconduct.
- Short-term illness: If you fall ill but recover quickly (within the policy’s deferred period), you may not be eligible to claim.
- Redundancies announced prior to the policy: If you know your job is at risk before you take out the policy, redundancy cover will not apply.
Always check your policy documents carefully to understand the specific exclusions that apply.
How Does Accident, Sickness and Unemployment Cover Work?
When you take out an ASU policy, you agree to pay a monthly premium in exchange for income protection. If you are unable to work due to an accident, illness, or job loss, the policy will provide a percentage of your salary (typically between 50% and 70%) during your period of downtime. This payout is intended to help cover essential expenses, such as:
- Mortgage or rent payments
- Utility bills
- Daily living costs
The payments generally continue for up to 12 months, though some policies may offer shorter or longer periods depending on your cover.
Do I Need ASU Insurance?
Whether or not you need ASU insurance depends on your financial situation and job security. If you don’t have significant savings or other forms of financial support, ASU can offer valuable protection, particularly if you’re concerned about redundancy or the risk of long-term illness. For those without access to substantial sick pay insurance or savings, this type of cover provides peace of mind that you’ll have income even when you’re out of work.
Am I Eligible for ASU Cover?
To be eligible for ASU insurance, you must generally:
- Be in full-time employment at the time of taking out the policy.
- Not be aware of any pending redundancies or health conditions that might lead to a claim.
- Be under a certain age limit (usually 65).
Self-employed individuals may not qualify for unemployment cover but can still benefit from accident and sickness protection.
How Much ASU Cover Do I Need?
The amount of ASU cover you need depends on:
- Your monthly outgoings: Consider how much you need to cover essential expenses such as your mortgage, rent, utilities, and food.
- Your income: Most policies cover a percentage of your income, usually between 50% and 70%. Calculate how much you would need to comfortably live on if you were out of work.
- The duration of cover: ASU policies typically pay out for 12 months, though longer-term policies are available.
Accident and Sickness Insurance for the Self-Employed
Self-employed individuals can take out accident sickness and unemployment insurance, though unemployment cover may not be available to them. Instead, self-employed people often focus on sickness insurance or self-employed accident insurance to protect their income if they cannot work due to illness or injury.
What Types of Accident and Sickness Insurance Are Available?
There are different types of ASU policies to choose from, depending on your circumstances:
- Accident and sickness only: Covers you if you’re unable to work due to illness or injury.
- Unemployment only: Protects your income if you lose your job due to redundancy.
- Combined accident, sickness, and unemployment: Offers the most comprehensive cover for all three scenarios.
When Can I Claim on ASU Insurance?
You can claim on accident, sickness and unemployment insurance if you meet the policy’s conditions. Most policies have a deferred period, which is the time between when you stop working and when the policy starts to pay out. The deferred period can vary from 30 days to 90 days, depending on the terms of your cover.
What Other Types of Income Protection Are Available?
If ASU doesn’t suit your needs, you might want to consider other forms of income protection, such as:
- Income protection insurance: This provides long-term cover if you are unable to work due to illness or injury.
- Critical illness cover: Pays out a lump sum if you are diagnosed with a serious illness.
- Payment protection insurance (PPI): Often used to cover specific debts like loans or credit card repayments.
What Do I Need to Get an ASU Policy Quote?
To get an ASU insurance quote, you’ll typically need:
- Your employment status: Whether you’re employed full-time or self-employed.
- Your income details: The amount you’d like to protect.
- Your mortgage or rent: To ensure your essential bills are covered.
Comparing quotes from different providers will help you find the best asu insurance uk policy for your needs.
Why Use Ascot Mortgages for ASU Insurance?
At Ascot Mortgages, we understand the challenges that come with being unable to work due to illness, accident, or unemployment. Our expert team is here to guide you through finding the best accident, sickness and unemployment insurance policy for your individual needs. We work with top providers to help you compare asu insurance uk quotes and ensure you receive the most competitive and comprehensive coverage available. Whether you’re looking for sick pay insurance or complete work insurance protection, we are here to help you make an informed decision and secure your financial future.
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FAQ
Most ASU insurance policies pay out for up to 12 months, but you can choose shorter or longer payout periods depending on the policy you select.
No, ASU insurance is different from PPI. While PPI covers specific loans or debts, ASU insurance protects a portion of your monthly income and can be used for any expenses.
Yes, accident and sickness insurance covers you if you are unable to work due to illness. Your policy will pay out a percentage of your income during your recovery period.
If you receive sick pay insurance from your employer, ASU cover can complement this by paying out additional income. You may need to check your policy to ensure you’re not over-insured, as this could affect your premiums.
Yes, ASU insurance is often used to cover mortgage payments and other essential bills if you’re unable to work.
Yes, many ASU policies include redundancy cover, which protects you if you lose your job due to factors beyond your control, such as company restructuring.
Your eligibility for sickness insurance depends on your health and medical history. Some policies may exclude pre-existing conditions, so it’s essential to read the terms carefully.
To compare accident, sickness and unemployment protection policies, you should consider:
- Monthly premiums
- Coverage limits
- Deferral periods
- Exclusions and conditions
Use comparison websites or speak with an insurance broker to find the best policy for your needs.
If you don’t have significant savings or access to other forms of financial support, ASU insurance can provide a vital safety net during times of unexpected illness, injury, or job loss.
To claim on your ASU insurance, you will need to:
- Contact your insurance provider as soon as possible.
- Provide evidence of your illness, accident, or redundancy.
- Submit the required documents to support your claim, such as medical records or a redundancy letter.
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