Accident,
Sickness and Unemployment - ASU
Accident,
Sickness and Unemployment - ASU
(Frequently Asked Questions)
Please
note these are general guides to ASU insurance and do not constitute
provision of advice or indicate that a particular product is
appropriate for you. Benefits, conditions and exclusions vary
from one Accident, Sickness and Unemployment insurance policy
to another and you should always check the ASU policy summary
and policy document to make sure that you understand what you
are buying. If you have any questions please talk to your insurance
broker.
What
is ASU or MPPI? ASU stands for Accident, Sickness
and Unemployment insurance. MPPI stands for Mortgage Payment
Protection Insurance. They are generally regarded to be the
same thing. If you are unable to work due to an accident, suffer
a period of sickness or hospitalisation, become unemployed or
be unable to continue your business if you are self-employed,
the policy will pay out to cover your monthly outgoings for
up to 24 months.
Am
I eligible for ASU insurance cover?
Cover is normally available to you if you: have been in continuous
employment for the 6 months immediately prior to the start date,
are aged between 18 and 64 inclusive, are permanently resident
in the UK, Channel Islands or Isle of Man and are not aware
of any impending unemployment. Compare
ASU Insurance Policies.
Can
my spouse and I have a joint ASU insurance policy?
Yes. A joint policy application can be made and the cover will
be directly proportionate to your income splits. For example,
monthly outgoings are £1,000 with the primary earner having
salary of £50,000 and the secondary earner £25,000. The joint
policy would be split giving the primary earner £660 of cover
and the secondary earner £340.
Are
there any restrictions to the number of claims I can make?
There are no limits to the number of times you can claim. Each
claim, however, will normally be subject to expiry of the Waiting
Period and at least 6 months continuous employment.
If
I have to make a claim when would I receive payments?
This varies enormously from one contract to another and is often
the source of much confusion. Our advice is to ensure that any
ASU insurance policy you purchase has "back to day 1 cover".
This means that you will receive your payment at the end of
the month from when the loss occurs. In the case of Accident,
Sickness or Loss of Employment, your first payment will therefore
be made on the 31st day following the day you are first prevented
from working. This is obviously the best because you would receive
a payment when you would normally be receiving your salary,
so you won't run into problems paying your mortgage or other
expenses. Some ASU insurance policies give you an option called
a deferment period. This means that your payments are delayed
for say 30 or 60 days. If you choose one of these policies it
would mean that the first payment won't arrive until 30 to 60
days after you are prevented from working, and even then you
may have to wait until the end of the month. This can cause
serious (although temporary) financial hardship.
