It’s worth taking out an Accident, Sickness and Unemployment policy (ASU) for ultimate peace of mind.
What is Accident, Sickness & Unemployment insurance?
This cover protects your monthly income if you fall sick, have an accident that forces you out of work or are made redundant. It is a policy that provides a monthly tax-free payment. Paid directly to you, replacing your income. It can cover your earnings for up to 12 months or you return to work.
Why would I need this?
Consider your monthly costs: mortgages, rent, bills, cars, mobile phones, groceries, pets, and clothing. Do you have enough savings to cover these costs if you can’t work? Would you even want to drain your savings? When a small cost each month could provide peace of mind instead?
Everyone is entitled to government-paid Statutory Sick Pay (SSP). Around £116.75 per week. Or if you are made redundant, Job Seekers Allowance (JSA) is available at £71.70 for under 24, £90.50 for over 24. Would these payments cover your weekly outgoings?
We hear all the time — “it won’t happen to me”. But unfortunately, anyone is vulnerable to the hardships of life. Think about it. Do you know anyone who has taken time off work because of illness or redundancy? I’m sure you are nodding right now. Maybe it’s even been you?
Sadly, you may not recover as well as you should due to the stress of losing your salary.
What do I need to think about when taking out a policy?
There can be initial waiting periods, so the sooner you secure your policy, the sooner you will be protected against loss of income. For unemployment policies, there is always an initial exclusion period. If you become aware that your job is at risk during this period, it is usually best to cancel the policy. This exclusion period could range from 60, 90, or even 120 days. Additionally, it’s important to note that Accident, Sickness, and Unemployment (ASU) insurance is typically a short-term solution, providing cover for 1 or 2 years.
Alternatively, you may want to consider Income Protection, which offers longer-term cover and could be a more comprehensive option to mention when exploring protection policies.
You’ll also have to consider the best policy for you and your family. You can research this yourself or contact us and we’ll go through them with you. Policies contain a list of eligibility or criteria. It’s important to understand the details. You will be asked a list of ‘eligibility’ questions to confirm.
How much does Accident, Sickness and Unemployment insurance cost?
The cost of your policy really depends on your situation. While individual benefits and extra features can raise the price, the most significant influence on the cost will be the level of cover you choose. The higher the cover, the more you'll pay in premiums. In addition, these five factors will also mostly influence your policy:
• Your Age: Unfortunately, the older you are, the higher the cost. Every five years, the price will slightly increase.
• Initial Exclusion Period: The shorter the initial exclusion period, the more expensive the cost.
• Excess Period: The quicker you want the claim to be paid, the higher the cost of your premium.
• Benefit Amount: Naturally, the more money you would like to have paid out to you, the higher the cost.
• Additional Factors: Finer details such as your postcode, industry or occupation, travel habits, medical conditions, or hobbies may also impact the cost of your policy.
Ultimately, the level of cover and benefit amount you choose will be the primary driver of the cost, with these additional factors playing supporting roles.
So remember…
How would you or your loved one be affected if you lost your regular income? Would you be able to keep up with your mortgage or rent payments? On top of this financial stress, would you be able to fully recover from your accident or sickness? Or find a new career, knowing your situation could affect your loved ones?
Accident, Sickness and Unemployment protection can be here to help. Speak to one of our helpful advisors, who will be more than happy to guide you through the process.
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Source:
https://www.bestinsurance.co.uk/accident-sickness-unemployment-insurance/