Accident, sickness and unemployment cover
Accident, Sickness & Unemployment (ASU) cover can also be referred to as mortgage payment protection and will provide you with an income to meet your outgoings if you are off work sick, have an accident or are made redundant. It pays out a monthly benefit to cover your mortgage and other related costs.
You can choose the amount of benefit you would like to receive, subject to limits on the maximum amount. The monthly premium that you pay will be a percentage of the amount of monthly benefit you would like to receive. Once you claim, benefits are usually payable for a maximum of 12 or 24 months.
Some policies will allow you to choose whether you want to receive benefits for just accident & sickness, unemployment only or all three. However, most policies will also have a 'deferment period', which means you will have to wait to start receiving benefits from your ASU policy after you claim. This can vary from one to three months but can be longer on some policies.
Anyone can apply for an ASU policy as long as you are over 18 and under 60 and normally reside in the UK. You must also be in employment or self-employment for at least 16 hours per week and have been so for the last six months.
It is worth taking professional advice before you take any protection policy and Samuels Financial can help you to choose the most suitable cover.
