It can be a pretty tough time when you’re out of work; money worries are likely to creep in as you try and figure out how far your savings can take you in the absence of any income.
To help ease the burden when you are unemployed, it’s important to make sure you are protected against the unexpected to ensure that you and your family are covered.
And this is where Accident, Sickness and Unemployment (ASU) insurance can help, providing an extra level of protection in the event of loss of income as a result of one of those circumstances.
What Is ASU Insurance?
ASU stands for Accident, Sickness and Unemployment, and is an insurance that helps to protect you should you be affected by any of the following:
- You become injured, and as a result are unable to work
- You become ill, and as a result are not able to work
- You lose your job through no fault of your own and are unable to provide
ASU insurance is essentially a ‘just in case’ insurance, providing protection if you are concerned as to whether you’d be able to cope if you were to fall ill or lose your job suddenly and be unable to provide for yourself and your family.
Who Chooses How Much I Receive?
ASU insurance essentially covers you for the sum of your monthly outgoings such as utilities and also your mortgage costs. A sum is worked out – usually about 60-65% of this total – and even though you are able to set the amount yourself, the percentage is unlikely to change.
Remember as well that, in the event of a payout, this will usually take a month to process, so don’t expect it to be an immediate payment.
How Long Can I Set A Policy For?
ASU policies are designed to be short-term solutions, so you are only able to claim for a maximum period of between 12 and 24 months.
While they can be useful to set up for the short term, there are a few rules about setting up a policy, and providers are quite strict in which circumstances they pay out, this is to avoid the risk of insurance fraud.
What Exceptions Are There?
Insurance providers may not offer you ASU insurance cover in the following circumstances:
- You take out a policy in the knowledge that you are soon to be made redundant or sacked
- You have existing medical afflictions such as backache or conditions such as stress
- You are self-employed
- You have worked at your current company for six months or less
- You are over-65
Providers are very strict in who they cover, so those who want to take out cover in anticipation of a redundancy or loss of employment are not likely to be able to get covered.
Check with each broker about any exclusions they might apply with regards to your claim, as these can differ from company to company.
Why Should I Get A Policy?
ASU policies can help provide extra peace of mind in the event of unexpected circumstances; this could be seen as an excellent short-term policy to take if you have not much in the way of outgoings or significant debts.
Many of us will worry about what may happen as a result of ourselves or another breadwinner being out of work as a result of unexpected circumstances.
Taking out some form of policy such as ASU insurance on a short-term basis can be a good investment as it can help take a weight off your mind, much like with policies such as life insurance.
Do Your Research
There are a number of brokers who offer ASU insurance, and when searching for a policy, it’s best to get quotes from a few of them, many will allow you to cover with monthly payments.
Brokers may differ on the period between a claim being made and the payout date, it can usually take a month for such claims to clear but it’s always best to double check with multiple providers to find out if yours will vary.
Remember as well that ASU policies are very time sensitive, both at their inception and towards the end of your cover, so double-checking the details of your policy is always a good idea.