Before we dive deeper into our Top 5 list its important to understand what ASU is. ASU stands for Accident, Sickness & Unemployed. In the current financial climate, the possibility of redundancy exists across all sectors, up and down the country.
Accidents can happen and illnesses can strike at any time. Accident, sickness and unemployment plans, or ASU policies, exist as a short term solution. They are designed to bridge the financial gap in case any scenario occurs that could see you out of work, usually for as long as 12 months.
"If you fell ill could you afford the bills?"
1. Understand the difference between ASU insurance and Income Protection Insurance - When quickly glancing at the two insurances they do look very similar as they insure your income however it is crucial to understand the difference before signing up for one. ASU insurance differs to income protection as it insures your mortgage payments and other important payments and can last up to 12 months dependent on the provider. Income protection insures your income, and is not linked to your mortgage or important outgoings and can pay out benefits for years.
2. Check if your policy has a Deferment Period - Not all policies will start as soon as you are unable to work and each provider has their own deferment period. Another thing to note the longer you set the deferment period the lower the monthly premium will be. Make sure you have read and understood this section of the terms & conditions from your provider before continuing and make sure it meets your needs.
3. Make sure you have read and understand the length of your cover - As mentioned in point 1 ASU can payout for up to 12 months but this is also dependent on the provider and the deferment period. This can be discussed with out friendly team here and they will be able to go step by step with you making sure your insurance meets your needs.
4. Do you need cover for all 3 aspects of this insurance? - Some policies will allow you to pick from the three aspects of this type of insurance. So; should you only require cover for accident and sickness, sickness and unemployment, or accident and unemployment, this is a possibility and can be discussed with one of our team members over the phone to make sure your policy is best suited for you.
5. Understand the benefits of having ASU - Unfortunately, mortgage payments, credit card and other important out-goings will still need to be paid whether you are in employment or not and there is not much room to stall these payments. If you were out of work through redundancy, illness, or injury, you may be entitled to state benefits. However, this is often modest and can mean you struggle to meet your financial commitments . Rather than relying on savings, or in the worst cases, debt, ASU insurance can bridge the gap. As accident, sickness and unemployment is designed to cover the most important payments such as your mortgage, it can provide a great deal of peace of mind in a difficult time. With 10 million households in the United Kingdom having no savings at all, ASU insurance can be a fantastic protection product.
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To get your ASU insurance quote today and contact our friendly adviser team here. Or call us on 0333 188 7617.
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