Accident, Sickness and Unemployment. ASU.
Accident, Sickness and Unemployment (ASU) is an insurance that offers a safety net for those who are unexpectedly out of work due to illness, injury or redundancy. It provides financial assistance and peace of mind when life takes an unexpected turn.
This type of policy can also be referred to as Short-term income protection or payment protection insurance as pay outs are more restricted.
Similarly, to Income Protection, the provider will only pay between 50% – 65% of your earnings. This money can the help towards mortgage payments and other house hold bills to be sure you don’t fall behind.
What is the difference between Income Protection and an ASU policy?
There are some key differences between these two policies which is why speaking to one of our advisors is important, so you can be sure you have the right policy for you.
Typically, an ASU policy will have a shorter deferred period meaning the policy will take effect sooner at point of claim.
Redundancy cover is not included when taking out an income protection policy. If this is something you are concerned about then please make our advisors aware during your meeting.
An ASU will only pay out for a maximum of 12 months, compared to an income protection policy which would usually pay out anything from 12 months up until age 65.
An ASU policy will pay out if you become injured and unable to work.
An ASU policy will pay out if you fall ill and are too sick to work.
When completing the application your health, lifestyle and occupation will be taking into consideration. Any pre-existing health conditions or previous injuries that aren’t disclosed at time of application, could impact you being able to claim on your policy for sickness or accident.
An ASU policy will pay out if you lose your job through no fault of your own, such as redundancy. You are unable to claim on the policy if you are fired from your position or decide to quit your job voluntarily.