Accident, Sickness & Unemployment insurance (ASU) is also known as mortgage payment protection and this is the best way of getting covered when you have fallen sick or met with an accident. Since you will not be able to work for a temporary period, ASU cover will give you a monthly benefit to cover your mortgage and other related costs.
According to the type of cover, you may decide how much you will like to receive in the benefits. The premium will be a certain percentage of the amount you will like to receive as a monthly income. These benefits can be payable for a maximum of 12 months.
There are different kinds of benefits as per your requirements. You may receive benefits on the basis of your requirements like accident, sickness or unemployment or because of a combination of all. Most of these policies generally have a deferment period. You will start receiving benefits after a certain period after you have become ill, or met with an accident or you are going through unemployment. Generally, there is a waiting period between 30 – 90 or sometimes longer. With a 30 day waiting period, on the 31st day of unemployment or disability the claim is back dated to day 1 & paid in full.
There will be no insurance cover if you have deliberately got a self injury, riding on a motorcycle, dangerous sports or occupations, working as a professional sports person, or any injury or condition related to normal pregnancy, stress, backache or which you had prior to your application for cover, AIDS related conditions, conditions due to drug and alcohol abuse or your criminal activity.
There will be no unemployment cover if you were already aware of the reasons behind your unemployment. You will also not qualify for any kind of coverage if your work is seasonal or temporary or you can accept voluntary unemployment. However, if you are working on a contract basis, then you may qualify for unemployment cover provided you fulfill some requirements as mentioned in the coverage policy. Go through the terms and conditions thoroughly and check out the exclusions in your policy. You will not qualify for any kind of cover if you get sick within 60 days of the policy. And there will be no unemployment cover during the first 180 days of your policy.
Anyone between 18 – 60 years of age and a UK resident can apply for Accident, Sickness and Unemployment cover. If you are applying for unemployment cover, you must be in employment for at least 16 hours per week for the last 6 months.