ASU – Accident, Sickness and Unemployment insurance is there to protect you should you no longer be able to work due to an unfortunate accident, sickness or if you are involuntary made redundant by your employer.
This UK Accident Insurance policy pays out a monthly income which is tax free and is a short term insurance usually lasting between 1 and 2 years and is usually linked to your income (Income payment protection), loans (Loan payment protection) or mortgage (Mortgage payment protection).
Mortgage payment protection, also know as Accident Sickness and Unemployment Cover will protect your mortgage or rent payments by paying out a set amount (up to 150%) on a monthly basis. It is usually a little more than your rent or mortgage so it can also help with your household bills and the term cover is usually 12 months or 24 months depending on the insurance provider.
If you are self employed then you can still have Accident, Sickness and Unemployment insurance however, making a claim is a little more difficult.
If you claim for unemployment and you where self employed then your policy will generally only pay out if you can prove that you have officially closed your business and have registered with the appropriate government agency
Still unsure? Visit our UK Life Insurance Jargon Buster page which explains all the complicated insurance terminology.
Alternatively, you can visit our help / faq’s page which answers many different frequently asked questions.