Explaining accident, sickness and unemployment insurance
What can an accident, sickness and unemployment insurance policy do for you? Most people in the UK have a mortgage or other form of loan. This means monthly repayments to a bank or building society as well as regular outgoings that have to be met, such as food and fuel bills or rent, if you are living in a rented property.
And while most people do not struggle to meet these regular outgoings while they’re in work and have a steady income, very few consider whether or not they’d be able to keep up with these payments should they find themselves out of work due to illness or injury, or are made involuntarily redundant.
Accident, sickness and unemployment insurance (or ASU insurance for short) policies help to nip these worries in the bud. This innovative payment protection insurance product provides a tax-free temporary income, typically up to £1,500 every month (or half your gross monthly income) for a set length of time, usually between 12 and 24 months. This means that the cost of your mortgage, loan or other payments can be maintained until you’re able to get back on your feet or find alternative employment.
Accident, sickness and redundancy cover can often be surprisingly cheap, too; it’s not difficult to find a quote for just a few pounds per £100 of monthly protection needed from an independent provider. For this low price, a lot of the worries and financial pressures of losing your job or suffering a medical setback or injury can be drastically reduced.
Peace of mind
Aside from the obvious financial benefits that come if you do find yourself unable to work, one of the biggest selling points of accident, sickness and unemployment insurance is the increased financial security it can give you, which is especially important in an uncertain economic climate. None of us are impervious to involuntary redundancy or suddenly becoming too ill to work due to accident or prolonged illness and that is why incapacity and redundnacy insurance is so important.
Knowing that, even if you’re subject to illness, injury or involuntary redundancy, your mortgage, loan and / or other payments will still be taken care means that you can relax a little, and concentrate on getting better, or finding new work. Without it, you may feel the need to rush back into employment before you’re physically ready, or having to settle for a less-suitable job just to make ends meet. The premiums on a policy like this are, for the majority of people, a worthwhile investment, both in your financial future and as a way of putting your mind at rest that you’ve done everything possible to keep yourself protected against whatever unforeseen circumstances may be lurking in the corner.
Cover for carers
Some policies also have the additional benefit of not just protecting against you becoming unable to work due accident, sickness and unemployment, but if you have to give up work in order to care for someone. Carer cover will provide a monthly income, just as it would if you were made unemployed or became incapacitated, in the event of you becoming a carer. This means that you get all round protection against the unexpected.
Where can I buy accident, sickness and unemployment insurance?
There are two ways of taking out accident, sickness and unemployment cover, however many individuals do not realise this. When taking out the loan or mortgage the lender would usually try to get you to take out your policy alongside your borrowing. When taken this way the protection is usually worked out for the entire loan/mortgage period, added in to the overall cost, and interest added in on top. This could mean that you pay way over the odds for the protection and you could probably get it much cheaper with the second option.
However high street lenders often fail to mention that you do have another option when choosing your payment protection insurance cover as they make an estimated £5 billion in profits from the sale of protection insurance.
This other option is to shop around and look for insurance with an independent payment protection provider. By doing so you could save around 40% on mortgage cover and a massive 80% savings on loan payment protection. Many people already choose to go to a specialist, independent insurance provider to get their accident, sickness and unemployment insurance cover, rather than going to the bank or company behind the original borrowing. This way, they’re free to shop around the market and save money on the cost of their cover, as well as being able to get a policy more suited to their individual needs.
This means they can be absolutely convinced that they’ve got the right payment protection insurance policy, and thus will likely feel a lore more secure about the terms of their insurance.
If the benefits of accident, sickness and unemployment insurance are not yet obvious, then consider this. How would you manage financially if you were to become unemployed due to being made redundant or you became unable to work due to prolonged illness?
Where would you get the money from each and every month to continue meeting the demands of a mortgage, loan repayments or even your essential outgoings? With and incapacity and unemployment cover policy you would have an income towards being able to sustain these repayments at least for the term of the policy.
In summary, there are many reasons to take out accident, sickness and unemployment insurance cover – long term financial security, the low monthly premiums, and the peace of mind that comes from knowing your assets are protected from repossession or foreclosure should you find yourself out of work – and along with the great savings it’s possible to find by going to a specialist insurance provider, getting a quote for cover is a great way to put your future finances in order right away.
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