If you’ve been lucky enough to go through your career without experiencing involuntary redundancy then you should be thankful. Many people have been made redundant, suffered an illness or accident that significantly reduces their income. If your luck ran out and you faced one of these three incidents then having accident sickness unemployment insurance would greatly help you.
You probably guessed by the name of the policy that you will be covered if you fall ill, suffer an accident or in the event of unforeseen involuntary redundancy. You will be protected if there is a reduction in your salary or if it disappears altogether.
Accident sickness unemployment insurance will offer you a much needed replacement income that you can use to pay your bills and maintain your finances. The payment will usually last for 12 or 24 months depending on the provider you choose. If you returned to work during the maximum period the payments will cease.
The other main benefit of this protection policy is the peace of mind it provides. If you are on your sick bed or looking for a new job, the last thing you need is to stress and worry about where the next credit card or mortgage payment will come from.
With the extra payment you can keep a clean credit profile by avoiding missed payments altogether.
Accident sickness unemployment insurance policies usually carry a 30 - 90 day deferment period so you won’t be able to make a claim within this time. The longer the deferment period the lower your premium is likely to be.
Providers may allow you to choose to be insured for only one or two of the named events and this will also impact on your premiums.
For a sure way of saving on your premiums you should look at what independent providers have to offer. Their premiums are usually much lower than the high street brands.
Independent companies like British Insurance can offer up to 80% savings on premiums for loan insurance and up to 40% on mortgage protection products.
One thing to note about these protection policies is that the benefit will not cover your entire salary. The provider will only pay a percentage of your gross income as there are maximum benefit levels.
There are exclusions attached to the policies as well so you should read up on these so you know what the provider covers and whether or not your circumstances will fit.
Summary
Taking out accident sickness unemployment insurance is one of the best ways to protect your income and lifestyle in the event of involuntary unemployment, sickness or accident. It can provide you with peace of mind as well as the financial help that you need.
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