Accident Sickness And Unemployment

Accident Sickness and Unemployment (ASU) cover is generally used as an alternative to permanent health insurance. ASU is a usually used to cover the cost of mortgage repayments in the event of accident, sickness or unemployment. Some cover will provide a benefit that is greater than the mortgage repayments, typically used to cover house related expenses such as council tax, bills and home insurance etc.

ASU will usually pay out the level of benefit insured for a maximum of 2 years, usually after a deferred period. Deferred periods are usually 1 month, though can sometimes be 2 months.

The unemployment side of the policy refers to periods of involuntary unemployment such as redundancy. ASU policies do not over protection from unemployment when the insured is sacked or leaves voluntarily.

The benefits paid by an ASU policy are tax-free though there is no tax relief on the premiums.

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