Accident, Sickness & Unemployment Insurance (ASU)

This type of policy is designed to provide a short-term benefit towards the monthly income lost in the event of the policyholder’s earnings stopping as a result of an accident, illness or unemployment.

The policy benefits will only be paid in the event that the policyholder’s income is reduced or stopped. It is not designed to pay a benefit if the policyholder continues to receive their full gross salary from their employer.

As an extension, the policy can sometimes pay a lump sum in respect of accidental death, permanent total disablement or loss of limbs, sight or hearing.

ASU insurance is not compulsory and like other insurance, a considered judgement is needed to determine the likelihood of a claim arising and how any debts would be serviced without it. If the worst happens and a policyholder has to call on their insurance, it can be money well spent.

These policies normally have a fixed term of 12-24 months, and are reviewed annually or biannually by the insurer. At this point, it is normal for renewal terms to be issued and the insurer will write to the policyholder directly in this regard on each anniversary of the policy, offering the opportunity to alter the terms of the contract to suit their requirements.

Premiums can be reduced by accepting cover for only some eventualities, for example, opting to buy a certain type of cover e.g. unemployment only or disability only. This would only be prudent if the cover excluded was provided by another means. Also, such cover typically has exclusions, such as pre-existing medical conditions, pregnancy and self-inflicted injuries.

Applicants would have to be aged 18 or over to take out such a policy, and all proceeds upon a payout would be tax-free.

For more information, click on the most suitable link:

Life Insurance

Mortgage Protection

Critical Illness Cover

Whole of Life Cover

Private Medical Insurance

Income Protection Insurance

Buildings & Contents Insurance

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £595.

The Financial Conduct Authority does not regulate most Buy to Let Mortgages.