An Accident, Sickness & Unemployment (ASU) policy is a plan that helps you keep your money safe when unexpected things happen. Lots of studies have found that the three main things that can stop people from making money are accidents, getting sick and losing their job. So this policy is there to make sure you still have money coming in even if any of those things happen to you. 

When you have a full-time job, sometimes your employer will pay you if you get sick and can’t work. This is called “Statutory Sick Pay.” But not all employers pay a lot of money when you’re sick or hurt. It might only be a small part of what you usually earn. This money might not be enough to pay for important things like your house, rent, or other expenses. 

And when you don’t have a job, you won’t have any money coming in at all. Nobody wants to be in a situation where they have to use up all their savings to pay for things like their house or weekly food shop. That’s why it’s a good idea to think about protecting your income, which means making sure you have enough money even if something bad happens. 

If you have a lot of savings or a job that’s very secure, or if you don’t worry too much about accidents or sickness, then you might not need an insurance policy. You can go back to what you were doing. But if not, then keep reading to learn more.

 

So, what do you need to think about when looking for protection? First, you have to figure out how much protection you actually need. One way to do this is by making a list of all the things you spend money on each month. This will help you calculate how much money you would need if your income suddenly stopped. 

You probably have an idea of how much money you would need to get by each month. In the world of insurance, this is called the “Benefit Amount.” It’s the amount of money that the insurance company will give you if you have to make a claim. 

Next, you need to decide how long you’re okay with waiting to get the money you need. Insurance companies usually let you choose how long they will pay you the benefit amount. For example, it could be up to 12 or 18 months if you’re unemployed, and even longer if you’re dealing with an accident or sickness. Some policies for accidents and sickness will even pay you until you’re 70 years old! 

Remember, the more money you want to get as a benefit, the higher the price of the policy will be. So it’s up to you to decide how much you’re willing to set aside for this insurance policy. 

Now, let’s think about how long you can manage without the insurance company giving you money. You need to consider your savings and any help you can get from your partner, family, or friends. This is called the “excess period” in insurance terms. It’s the number of days that you have to wait before the insurance company starts paying your claim. 

For example, let’s say your policy has an excess of 60 days. This means that for the first 60 days of your claim, the insurance company won’t give you any money. Policies that start paying from the first day of your claim are called “back to day 1” cover, but not all policies are like that. 

You also need to know that even after the excess period, there might be more waiting time. The policy might say that they will pay you a small portion of the monthly benefit, but only at the end of each month. So if you have a 60-day excess period, it could take up to 90 days before you actually receive any money. 

It’s really important to check with your insurance company about the number of excess days and read the policy carefully. Don’t assume that the insurance will pay you right away when you become unemployed. Make sure you understand how long you might have to wait before receiving any benefit money. 

If you’ve been sick before or if you’re currently taking any medication, you need to be really careful when buying these insurance policies. It’s important to make sure the insurance company will accept you even with your existing health conditions. In insurance terms, this is called “pre-existing conditions.” Most insurance policies have information about this. 

You should talk to your advisors and ask them how the insurer will deal with your existing condition. Don’t rush to buy the insurance until you fully understand this part of the policy. If you make a claim and your pre-existing condition is not covered by the policy, you won’t get any money from the insurance. It’s like you wasted your money buying the insurance in the first place. 

If you’ve already been told that you’ll lose your job, it’s not a good idea to buy a protection policy. It’s too late for this insurance to help you in that situation. Even if you try to take a chance and get the policy, the insurance company will find out during the claims process, and they won’t give you any money. So it’s important to understand how long you have to wait after buying the policy before you can actually make a claim. This waiting time is called the “Initial exclusion period” or “Qualifying Period.” It can be anywhere from 60 days to 180 days, depending on the insurance company. So before you make your final decision, make sure you check how long you have to wait before the policy will start covering you. 

Many people tend to only read their insurance policies when they need to make a claim. But it’s really important not to treat your Accident, Sickness & Unemployment (ASU) policy the same way as your home insurance. ASU policies are specialist contracts because they’re all about making sure you have enough money to pay your bills when you can’t earn any income. That’s why you shouldn’t take any chances with it. 

Make sure you ask your advisor or the insurance company about how the claim process works. Find out what kind of evidence you need to provide and how long you’ll have to provide it for. For example, if you’re sick and need to make a claim, will a note from your regular doctor be enough or do you need to see a specialist? And if you’re unemployed, what kind of proof do you have to show? Do you need to sign up at the Job Centre or receive job seekers allowance? They might also have rules about how many jobs you have to apply for each month or if you have to accept any job that’s offered to you. 

Insurance companies will only pay your claim if they are fully convinced that it’s valid and you have given them all the documents they need as proof. 

If you’re getting payment protection insurance to cover your mortgage, loan, or rent, the amount you pay each month may change depending on the type of loan you have. It’s important to know what will happen to your insurance policy if your mortgage, loan, or rent amount goes up or down. Do you have to tell the insurance company every time and will they charge you for making changes? It’s all about keeping things organized and taking good care of your policy. 

Remember, it’s not just about the price of the insurance. You need to consider all these important details too. So make sure you provide the right information and understand how your policy works. There’s more to it than what you might see at first glance. 

Before you decide to buy an insurance policy, it’s really important to talk to your insurance company or broker. 

Here are the basic steps for buying Accident, Sickness & Unemployment Insurance: 

1. Find out how much money your employer will give you if you get sick, have an accident, or lose your job. 

2. Take a look at your savings and decide how much you’re willing to use if you need it. 

3. Compare different insurance policies based on how much money you need, how long you’re okay with waiting before getting paid, and what the prices and exclusions are. 

4. If you have any existing health conditions, find out if the insurance policy will cover them or if they’ll be excluded. 

5. If you work as a contractor, are self-employed, work for an agency, own shares in a business, or have a zero hour contract, check if there are any special rules that apply to you. 

6. See what kind of extra support the insurance company offers, like covering your legal costs, helping you find a new job, or giving you access to special medical consultants. 

7. Understand how the claims process works and make sure you can provide the right documents if you ever need to make a claim. 

Remember, it’s really important to talk to the experts and understand everything before you buy an insurance policy. We can put you in touch with a specialist who will take that time to talk through your options, Just click here and compete our really simple enquiry form – remember, our service is free to you and places you under no obligation!