Accident / Sickness / Unemployment

ASU stands for Accident, Sickness and Unemployment and these are the three key areas of cover under an Accident, Sickness and Unemployment policy. Qualify for a claim under one of these three sections of cover and the policy will pay out a regular monthly benefit, usually after a set waiting period has lapsed, and the benefit payment period will last up to a maximum period of 12 months depending on the level of cover provided under the policy. Under an Accident, Sickness and Unemployment policy the insured selects the level of monthly benefit they require, subject to it falling within certain policy qualifications. These are usually related to a maximum amount of benefit, not exceeding a certain percentage of your income when combined with other similar Accident, Sickness and Unemployment policies you may have and also subject to it not exceeding certain regular costs that are related to the item being protected such as a mortgage or loan. Once you have selected the level of benefit you require the premium is then calculated based on that benefit amount. There are no additional rating factors such as age, smoking, drinking habits or life styles. Applications for Accident, Sickness and Unemployment cover usually have to be accepted by the insurer and a few may be rejected but this is more likely to be related to the Accident, Sickness and Unemployment cover not being suitable for the applicant. Accident, Sickness and Unemployment policies can be presented under several different names. ASU policies, protecting mortgage repayments are often called Mortgage Payment Protection Insurance policies or just MPPI for short. They may be called just mortgage protection insurance policies. Accident, Sickness and Unemployment policies protecting loan repayments can be called Loan Protection Insurance or Loan Payment Protection Insurance. Some are simply just called payment protection insurance or income protection insurance if they are designed to protect living expenses. There will often be key differences between one Accident, Sickness and Unemployment policy and another and you will be wise to appreciate the differences so that you can make an informed decision on which policy to take or perhaps not to take. Most of these Accident, Sickness and Unemployment policies are purchased by those who think they may struggle with maintaining certain repayments in the event that they are unable to work for a period of time due to sickness, accident or involuntary unemployment.