ASU insurance, which stands for Accident, Sickness and Unemployment insurance was paused by a number of providers in the wake of Covid-19. But now many are again offering this specialist cover in the event that you are unable to work. Here, I reveal everything you need to know about ASU and explain who could benefit from this type of protection. 

Remember, if you’re looking for insurance to protect your health, life, or income, Moore Health & Protection can help. That’s what we’ve been doing for over 20 years and there’s no fee payable when you get in touch.

What is ASU insurance?

Accident, Sickness and Unemployment insurance is designed to protect you in the event that you’re employed but unable to work. It offers short-term income protection for up to 1-2 years, covering a portion of your salary, while you get back on your feet. What’s more, it means that you can still pay for your mortgage and other bills if you have an injury or illness and can’t work because of it. 

ASU cover is designed to protect you against temporary unemployment, sickness and injury and there is also long-term insurance available, up to retirement age, but monthly premiums will be more expensive. 

What do I need to get a quote?

Before anyone takes out ASU, it’s important to check whether you have similar protection included in your employee benefits plan. This includes any sick pay or redundancy packages. 

If you’re employed and you want to go ahead with an application for ASU insurance, you’ll need to provide your name, age, address, employment status, the job you do, income, details about your property status, and how much cover you need. It’s likely you’ll also have to provide answers to lifestyle questions such as whether you smoke or not. 

What does ASU insurance include?

This type of insurance provides financial support if you are employed and:

• Become ill and cannot work for an extended period of time
• Get injured and cannot work for an extended period of time
• Lose your job through no fault of your own
  

While every ASU insurance cover is different, typically it won’t pay out if you are sacked, quit voluntarily or take out ASU cover with the knowledge that you are about to be made redundant. Certain policies may also not cover you for pre-existing medical conditions or for back problems, anxiety and stress which is why it’s important to assess individual options and speak to an insurance consultant. 

How does ASU cover work?

Before taking ASU insurance out, you’ll need to decide how much cover you’ll need which will affect your monthly premiums. Typically though, people choose a specific amount of cover that would provide them with enough to pay their mortgage and bills every month. 

In the event that you can’t work because of an accident or illness, you’ll usually need to have been signed off work by a medical professional. There is then a deferred period, before you can make a claim. If successful, you’ll receive a monthly benefit which is a tax-free percentage of your income, usually for 1-2 years. 

Who needs ASU cover?

The truth is, anyone who is employed can benefit from this type of insurance as it provides that much-needed peace of mind that you can maintain your financial commitments in the event that you could no longer work because of injury or illness. This includes whether you’re employed or self-employed. However, be mindful that if you have savings to rely on or your employer offers a generous sick pay and redundancy package, an alternative type of insurance could be better suited. 

ASU insurance V statutory sick pay 

While both ASU and statutory sick pay are designed to provide you with financial relief in the event that you can’t work due to sickness or injury, the latter is likely to be much less than what you earn which is where ASU comes in to bridge the gap. ASU cover doesn’t affect your sick pay, instead it is designed to cover any expenses when your sick pay ends.

How Moore Health & Protection can help

Put simply, we help you find the right insurance cover for your needs – whether that’s ASU, income protection, critical illness cover, or something more specific such as mortgage payment protection. That’s because we’re on a mission to help individuals, families and employers to protect exactly what matters to them and we’ve been doing that for over 20 years. 

Authorised and regulated by the financial conduct authority and as an independent local intermediary with Chartered Insurance Industry accreditation, we’re here to answer your questions and can tailor-make individual plans to suit you. Plus, there’s no fee payable which means you can benefit from personalised advice – without any catches. 

Moore Health & Protection is a trading style of Tony Moore which is an appointed representative of The Right Mortgage Limited. The Right Mortgage Ltd is registered in England and Wales no. 08130498. Registered Address: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH.