Archive for the ‘Accident Sickness Unemployment Insurance’

Accident sickness unemployment insurance – or ASU insurance as it is popularly known – is a long-time favourite. Perhaps it is because it that rare insurance product that describes precisely what it does in its title. More likely, however, is the simple fact that it offers a crucially valuable rescue package whenever one of life’s setbacks threatens financial disaster.

The descriptive title well and truly sums up precisely how this simple and straight forward insurance cover works. In the event of the policy holder being unable to work because of an accident or sickness, or because he or she is unemployed through no fault of their own, the insurance pays out a regular monthly benefit in order to mitigate any financial loss incurred.

What is more, these benefits can be tailored to suit the particular purpose for which they are intended. For example, the insurance can be used to provide a replacement, general-purpose income to help cover assorted household bills or it can be specifically earmarked so that monthly loan repayments are maintained even when incapacity or unemployment has kept the policy holder from working. In this way, a replacement income, or funds with which to maintain loan repayments, can be arranged to cover as much as 50% of the policy holder’s regular working salary.

Of course, probably the single most critical monthly payment that most people will want to insure is the mortgage repayment, since defaulting on this for even a month or two can lead to difficulties with the mortgage lender, adverse credit reports and, ultimately, even repossession of the home. Fortunately, accident sickness unemployment insurance is sufficiently flexible to provide cover specifically for those mortgage repayments. Indeed, if this is the purpose to which any claimed benefits will be put, then it is generally possible to cover up to 75% of normally earned income or £3,000, whichever is the lower figure. It is even possible to include in such cover the cost of mortgage-related insurance premiums, such as mortgage life insurance and the home buildings and contents insurance premiums.

One of the important features to remember about this type of insurance, however, is that it is intended to provide a short- to medium-term rescue package only. That is to say, it will offer a financial rescue plan for incapacity or unemployment that lasts longer than a month but no longer than 12 months. The first of these intervals is the typical “qualifying period” out of work before a claim will be entertained (the qualifying period itself can vary from 30-60 days, depending on the particular insurer). Claimed benefits then become payable for every month the policy holder remains off or out of work, up to a typical maximum of 12 months (although some policies will offer the option of extending this period to up to 24 months).

One of the most experienced, market leaders in the field of accident sickness unemployment insurance is independent provider, British Insurance, whose managing director, Simon Burgess, adds: “the continuing popularity of this handy and very cost-effective insurance is well-deserved – providing, as it does, an immediate rescue package at those times when the unexpected takes us by surprise”.

There are so many things that could contribute to you losing your job, things that you have no control over. Three particular involuntary incidents are accident, sickness and redundancy. If any of these were to happen to you, there is an easy way to ensure you and your loved ones do not suffer financially. By taking out an accident sickness unemployment insurance policy, you can rest assured that if you were to lose your job involuntarily, you will have a regular income to keep you going until you return to full time employment.

More About The Policy

When you make a successful claim on your accident sickness unemployment insurance, a tax free income is paid every month. These payments will continue for up to 24 months depending on your provider.

The income will cover a percentage of your gross salary and not the full amount. Most providers impose maximum benefit levels so you’ll need to calculate your financial requirements and choose a sufficient income level.

Some providers will allow you to make multiple claims and others will not, information like this is found in the policy terms and conditions.

Before making a claim, most lenders will require you wait out the deferment period which is usually 30 – 90 days.

These policies can be linked to mortgage and other loan products so when the payments are made, these debts usually take priority.

You may be able to choose what you are covered for, for example you can choose to be covered for accident only, or sickness and redundancy etc.

Making A Choice

The number of protection products on the market is staggering, but making a decision about your accident sickness unemployment insurance does not have to be a long and difficult task. Start by looking at the benefits you’ll receive and the premiums you’ll pay to enjoy it.

If you choose a high street lender you will find yourself paying a lot more than with an independent provider so it might make sense to obtain a stand alone policy from an independent company.

Once such company is British Insurance; an ethical provider of protection products in the UK market. British Insurance can save you up to 40% on mortgage protection products while loan insurance will give an 80% savings on premiums.

The next thing to note is the policy terms and conditions. There is usually very important information in the small print, so be sure to read it. If you still aren’t sure about the terms, ask your provider, if they are unable to satisfy your needs, then choose someone else. You need to ensure the policy is a right fit for you and your circumstances.

Conclusion

If you value your income but recognise that it can be lost at anytime, you might want to protect yourself with an accident sickness unemployment insurance policy. The peace of mind you will receive is priceless.

Accident sickness unemployment insurance would provide you with a tax free monthly sum if you were to lose your own income as the result of an accident, sickness or if you were to become unemployed. You could take out protection against these events for your mortgage by way of mortgage payment protection insurance; cover your loan repayments with loan payment protection; or help to meet your essential outgoings with income payment protection.

This insurance is also known as ASU insurance for short.

You would take out protection depending on the payments you have to make each month by insuring a portion of your income, loan or mortgage repayments up to an agreed amount. If you were then to fall victim to one of these events you would claim on the policy and receive the income back that you insured. The money would be paid tax free and you would use it towards whatever payments you had covered.

Mortgage payment protection taken as accident sickness unemployment insurance would provide you with the money towards maintaining your mortgage repayments. This would help to stop you from falling into mortgage arrears. Mortgage arrears can mean you might lose your home if you cannot make an agreement with the mortgage lender to repay what you owe.

Loan payment protection allows you an income towards servicing your loan repayments. This helps you to stay on top of repayments and so ensures that your credit score would not be affected. This is what lenders take into account when deciding whether to give your credit application approval so it is essential to it in good shape.

Income protection insurance would provide money towards meeting all essential bills that came into the home each month. You would not have to worry about where you would get money to feed your family or to keep the utility bills paid.

All forms of accident sickness unemployment insurance are cheaper if you take them with an independent provider. Standalone specialists in payment protection will allow you to make savings of as much as 40% on mortgage payment protection insurance and 80% on loan payment protection. You can put in a claim for all types of protection typically 30-90 days after becoming unable to work or from being unemployed. Independent provider British Insurance dates your protection back to day one of your unemployment or from you being incapacitated and then continues to provide an income for 12-24 months, leaving you plenty of time to find alternative employment or recover from illness.

It’s official, a member of the government has confirmed the bleak news that recession is inevitable and, with it, the almost certain loss of hundreds of thousand more jobs (according to a report in the Telegraph newspaper on 9 October 2008). Add to this the threats to the continuity of income to those who manage to keep their jobs yet fall victim of accidents and sickness and need to take time off work, and it is understandable that more and more people are turning to accident sickness unemployment insurance – or simply ASU insurance as it is popularly known.

“No one knows when their income is going to be disrupted by an accident or illness, or – given the gloomy recessionary times ahead – be out of a job altogether” says Simon Burgess of independent providers of accident sickness and unemployment insurance, British Insurance, “so there’s no time like the present to be forearmed with adequate ASU insurance”.

This is a type of insurance that protects against the three most common causes of sudden and unexpected financial difficulty. It can only take a few months off work, nursing an illness, recovering from an accident or having to look for alternative employment, before the bills start piling up and it becomes more difficult than ever to make ends meet. Defaulting on the payments when they fall due can, of course, lead to the kind of adverse credit reports which store up even more problems in obtaining credit in the future, or, in the case of mortgage repayments, can even lead to the repossession of the home.

One of the beauties of accident sickness unemployment insurance is that it is sufficiently flexible to suit almost any personal circumstances – young or old, owner-occupier or tenant, employed or self-employed – and the premiums can be tailored to suit practically any pocket. Naturally, the size of the monthly premiums will determine the level of cover offered. This can range from a relatively modest percentage of the individual’s normal working salary, right up to a typical maximum of 50% of normal earnings or £1,000 a month, whichever is lower (although the precise limits will vary from insurer to insurer).

In the event of a claim arising from the policy holder’s absence from work following an accident or in order to recover from an illness, or if the policy holder has been made involuntarily unemployed, the insurance will then pay out a monthly replacement income as agreed at the outset.

Since this accident sickness unemployment insurance is designed to provide immediate and temporary relief from the most common occurrences of interrupted pay, the benefits payable are usually limited to a maximum of 12 months – generally quite long enough for most people to recover from a temporary incapacity or to secure alternative employment – although there are policies available (at a higher premium) that extend this maximum to 24 months.

When you think about accident sickness unemployment insurance, you’ll find that the main benefit you’ll receive is peace of mind. Also known as ASU insurance for short, it will provide a tax free amount in the event of you becoming unable to work due to one of the covered events.

This peace of mind is twofold because in the first instance, while you are employed earning an income you won’t have to worry about financial ruin if you were to lose your job.

The second part is the actual ability to relax if you were to lose your job due to illness, accident or redundancy. You won’t have to be stressed. You can recover in peace and you’ll be able to maintain your lifestyle.

So What Does This Policy Offer?

• You will be paid a tax free lump sum to help you maintain your mortgage and/or other monthly commitments
• Benefits are normally paid for up to 12 months but some providers will pay out for up to two years. As a result it can be considered as short term protection
• With the short term protection product, you will not be able to replace your entire income as there are maximum benefit levels that apply
• Depending on the provider you choose, you’ll be able to make multiple claims throughout the life of the policy

Tips For Choosing Your Accident Sickness Unemployment Insurance

To ensure you purchase a policy which is right for you, read your terms and conditions and measure any exclusions against your circumstances before signing up.

If you have a loan or mortgage, your provider may try to entice you to sign up for their protection product. Feel free to obtain a quote from an independent provider as their premiums are usually much lower.

Examine the payment terms of your policy as some providers may charge single premiums. Simon Burgess of British Insurance states ‘When single premiums are added on to big loan amounts this can add on hundreds of pounds in interest which could be avoided if monthly premiums were used’.

Your provider should be registered with the relevant regulatory body as this tells you they are bound by specific rules of conduct.

Summary

Once you do your homework and get to know the details of your policy, there is no reason to delay purchasing your accident sickness unemployment insurance. The peace of mind you’ll receive will be worth it.

You can consider accident sickness unemployment insurance to provide you with help towards the repayments you choose to insure. You can take out cover by insuring a pre-agreed sum of your mortgage or loan repayments or a portion of your income against the possibility that you might become unemployed or suffer incapacity. If you then suffer from these events you would receive then sum you insured back, tax-free for the term of the policy.

If you were to take mortgage protection you would receive a sum of money that would be used towards you maintaining your mortgage repayments each month. It is essential to keep up with the repayments as falling into mortgage arrears can mean you could lose your home to the lender through repossession. Loan payment protection taken as accident sickness unemployment insurance (or ASU insurance for short) would go a long way towards ensuring that you do not fall behind on your loan repayments. It will also help you to maintain your credit rating and this is essential if you want to get approval for credit in the future. Income cover would give you money towards being able to keep up with all your essential outgoings. This could be anything from keeping up with the electric and gas bills to putting food on the table.

One of the cheapest ways to take out mortgage, loan or income payment protection is by comparing quotes with standalone payment protection providers. One of the cheapest quotes will come from leading specialist in payment protection British Insurance. They can save you as much as 40% on mortgage cover and 80% on loan payment protection. Along with this they will provide cover that comes with few exclusions. There are always exclusions in any payment protection policy and these need checking against your circumstances if you are to ensure eligibility. British Insurance makes this easy as they provide you with the information needed on their website.

All types of accident sickness unemployment insurance from them would come with no excess as the protection would be dated back to the first day of you being unemployed or from being incapacitated. A claim can be made on the protection from day 30 and British Insurance would payout for up to 12 months before the cover would expire. If you look at protection with other providers you could find that you can get 24 months of protection but you would have to check the small print of the policy to find this out. You would also need to check to find out when you would be able to make a claim on the protection as with some providers it can be as long as the 90th day from being unemployed or incapacitated.

Accident sickness unemployment insurance (or ASU for short) can be taken to insure your monthly repayments against the possibility that you might suffer from one of these events sometime in the future. You can choose to take out loan, mortgage or income payment protection and all policies would work out cheaper if you chose to buy the protection independently.

Loan cover would cost up to 80% less with ethical British Insurance and mortgage payment protection up to 40% less. You would take out the payment protection plan by insuring up to a certain amount of your loan or mortgage repayments, which would be defined by the provider, or up to so much of your income and this would be pre-agreed when you take on the cover. The amount you chose to insure would be the sum of money that you were paid back when claiming on the policy. If you had taken out mortgage payment protection then the sum of money you received would go towards you being able to maintain the repayments of the mortgage. Loan protection would supply you a sum towards being able to keep up the loan repayments each month and the sum of money from income cover would be used towards maintaining all of your essential outgoings.

If you take protection offered by specialist independent provider British Insurance you would receive your tax-free income from the 30th day of unemployment or from being unable to work after falling ill or suffering from an accident. The protection would be dated back to day one of your redundancy of incapacity and would then carry on providing for you for up to 12 months. By choosing to search and compare with other providers you would have to read the small print to see when they would payout from as with some providers it could be as long as 90 days before you would be able to make your claim. You would also have to check the terms to find out how long you would be able to benefit, some providers could offer to payout for up to a maximum of 24 months before the policy would cease.

All forms of accident sickness unemployment insurance would come with some exclusions, even if they were just the most frequently found ones, as is the case of British Insurance. These would have to be checked against your circumstances so that you could be sure of the cover being suitable. Exclusions can stop you from being eligible to claim and British Insurance supply you with the information needed to determine suitability on their website so you can make a decision regarding eligibility before buying.

You could choose to take out accident sickness unemployment insurance to protect your monthly payments against the fact that you could lose your income due to becoming a victim of one of these events. These could be loan repayment with loan payment protection or mortgage repayments with mortgage payment protection or you can insure your income in general by taking out income payment protection insurance.

Also known as ASU insurance accident sickness unemployment insurance you will often be offered cheaper premiums if you choose to take out the policy with an independent payment protection specialist. One such provider is British Insurance who can save you as much as 40% on mortgage payment protection and up to 80% on loan payment protection. You would take out your policy by insuring up to a certain amount of your mortgage or loan repayments or a percentage of your income which would be pre-agreed when you take out cover. This would be the sum of money that you would be paid back if and when you needed to make a claim on the protection.

Accident sickness unemployment insurance would only being to provide you with an income which would be tax-free after so long after becoming unemployed or incapacitated. It would then continue to pay for the term stated in the conditions of the cover which must be checked before you take on the protection. Some providers will payout from 30 days and others might ask you defer from claiming until 90 days after the event. Providers will offer cover that would either run for 12 months or 24 months and again this must be checked when you take on the policy.

If you were to choose to take insurance from independent provider British Insurance you would receive your first payment from the 30th day and you protection would last for 12 months. You would be supplied with the information needed to ensure that cover was suitable. This means that you have access to the exclusions which appear in all payment protection policies. Some providers could add in many while others British Insurance included would put in just the most commonly found exclusions. Once you have checked these against your lifestyle you could then rely on the policy providing you with your income for the term of the cover.

Mortgage accident sickness unemployment insurance would provide a sum of money towards your mortgage repayments each month. Loan payment protection would provide an income towards keeping the repayments of the loan going and income payment protection would provide you with a sum that would go a long way towards you being able to service the repayments of all of your essential outgoings.

We all have bills that need paying on a monthly basis and depending on the type of outgoings we have would all depend on the type of accident sickness unemployment insurance that you could consider taking out. Policies would protect your repayments against the possibility that you might lose your own income after suffering from an accident an illness or if you were to become unemployed by such as being made redundant.

You would insure up to a certain amount of your outgoings with accident sickness unemployment insurance (also known as ASU insurance) your and then this would be the amount that you would be paid back tax-free if and when you needed to put in a claim. This sum of money would then be used towards your repayments, depending on the type of insurance taken and would allow you peace of mind that you would not get into debt or arrears.

You can take out accident sickness unemployment insurance to cover the repayments of your loans, mortgage and your essential outgoings. All policies would payout in the same way. If you choose to shop around for the cover independently then you can save as much as 40% on the cost of mortgage payment protection and 80% on covering your loans. Independent provider British Insurance would begin to supply your replacement income after you had been unable to work or unemployed on a continual basis of at least 30 days. They would offer to back pay on your policy and would then keep on supplying cover for up to 12 months. During this time you would be able to search around and find work again or make a recovery and be able to get back to work. When comparing the cost of the insurance you might find that some providers would extend payments to 24 months. you also need to look at the terms and conditions as some provider might ask that you defer from putting in a claim until the 90th day.

Mortgage payment protection can be taken to help you maintain the repayments of your mortgage each month. It is essential to keep up with these if you are to avoid eviction. Loan payment can be secured by taking out loan payment protection and this would help to keep you credit rating intact along with keeping yourself from falling behind on the repayments. Income payment protection taken as accident sickness unemployment insurance would allow you to be able to maintain all essential outgoings and this sum of money would allow you peace of mind that you would be able to keep food on the table and pay your utility bills.

All forms of accident sickness unemployment insurance  can be taken out for a much cheaper premium with a standalone provider than taking it alongside loans and mortgages. Lenders on the high street do offer loan and mortgage protection when you borrow, however this is an expensive way of taking out valuable protection for you payments. If you choose to shop around online and get quotes with independent payment protection providers this will lead to big savings.

Payment protection specialists British Insurance for example, will offer premiums with savings of 80% on loan protection and 40% on mortgage payment protection. Income insurance also comes with cheaper premiums and all policies come with the information needed for you to check suitability. Exclusions do need checking against your circumstances and British Insurance put this information online. Once you have checked that you would be eligible to claim you are able apply for the policy online. All policies would guard against the possibility that you might lose your income to unemployment, accident or illness.

The premium you will pay each month for your accident sickness unemployment (ASU) insurance will be based on the amount of cover you want and your age. All policies can be taken out for up to a pre-agreed sum of money and this would go towards you being able to keep up with outgoings and not fall into debt.

With British Insurance you would receive an income, tax-free, each month after 30 days of being unemployed or from being incapacitated. The protection would be paid back to day one of you being made redundant or from being unable to work. Once the protection had started to provide you with an income it would continue for up to a maximum of 12 months if needed. Some providers might offer a policy that would continue paying for 24 months and some providers might state you cannot claim on the benefit for up to 90 days.

Loan payment protection taken out as accident sickness unemployment insurance would help you to maintain loan and/or credit card repayments. This stops you from falling into debt with the payments and keeps your credit status intact. Mortgage payment protection would supply an income towards you being able to pay mortgage repayments and so not fall into mortgage arrears. Being unable to pay your mortgage can lead to the lender taking you to court and choosing to repossess your home. With a policy behind you there would be no worry of this happening. Income cover would allow you to be able to meet any essential outgoings that you would need to make in order to keep the home running smoothly.