Finance Classic

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.

Most of the women often have the tendency that the financial decisions should be taken by men. There are so many of us who balance our checkbooks, do our monthly budgeting and probably manage the household finances. but if we have to see deep inside, how many of us have been able to build a strong financial foundation for ourselves?

I am working in a financial service industry and I have to review many different portfolios, all belongings to women of varying backgrounds. When I am reviewing anyone’s portfolio, the first thing that I will like to check is whether it is built on a stable foundation, which can always begin with life insurance, a will and a savings plan.

There was one of my clients who came to me to seek financial help after she went through a divorce. She had many adjustments to make but she gave the maximum priority to taking charge of her finance. I reviewed her information and found that she had established a strong college program for her son’s education. She also had a retirement plan in which she added one percent to each month. She did not have any kind of savings or life insurance. Her ex-husband owned the life insurance coverage through his company. I suggested her suitable life insurance according to her situation and assisted her in getting a will drawn up. I also helped her in establishing a savings plan.

In order to make a strong financial portfolio, it is important to have a good life insurance, a healthy savings plan and a legal will and I included these vital elements in my client’s portfolio. A life insurance is a must for everyone because it ensures a good life for your loved ones after you are gone and they don’t have to face any financial difficulties. You might be easily able to afford a 401(k) plan, but without a life insurance, your financial situation is not that much secured for your future.

There are so many women who do not have a life insurance at all. Those who are above 45 years of age won’t even qualify for any kind of insurance coverage. Due to the recent downsized economy, more and more younger women are purchasing more coverage.

A good will decides your rights to dictate how your assets will be handled after your death. A savings plan will definitely give you more protection in the future just in case if something goes wrong with your finances. A good planning will mean a lot to our loved ones. If you have not decided anything yet, its time to do some serious thinking now and rebuild your financial picture.