Due to the coronavirus outbreak, we are currently unable to offer comparison for Unemployment cover as some of our insurance providers are unable to provide cover. However, we are still able to offer comparison for Accident and Sickness cover.
What is accident, sickness and unemployment cover
Accident, sickness and unemployment (ASU) insurance describes the situation you’re covered against rather than what you are actually covering. Insurance products in this area include mortgage payment protection, loan payment protection and income protection.
You can get cover for three main reasons:
- accident and sickness
You can choose which is best for you. For example, your employer might provide great sick pay and so you will only be concerned with unemployment insurance.
Alternatively, you might be self-employed and therefore can’t make yourself redundant, so will only want insurance that covers you if you have an accident or become ill.
Is ASU the same as PPI?
PPI (payment protection insurance) is typically taken out alongside a loan or credit card. If you’re unable to make a payment, PPI will help you to make the payment as normal.
However, PPI is taken out on a per policy basis, and this is where the difference from ASU (accident, sickness and unemployment) lies. ASU will provide you with a replacement for your wages. With this alternative income, you may be able to maintain all of your regular outgoings, instead of being limited to individual payments.
Frequently asked questions
How much cover do I need?
You can choose a sum that represents your mortgage amount or your total bills. Our online journey allows you to cover 50% of your pay before tax is deducted (your gross pay).
How long should my policy pay out for?
Unemployment claims typically cover you for 12 months. Long-term cover is available, and can last from two years up to retirement age. It’s important to know that policies are usually written on a moratorium basis, which places an initial delay on payment being received.
For sickness and injury, policies tend to be based on a series of health questions or a medical exam, meaning that your policy is unique to you.
Does income protection cover illness?
Accident and sickness insurance (AS), a form of income protection, covers loss of earnings through illness or injury. Statutory sick pay can be significantly lower than your actual earnings, so AS insurance can help bridge that gap. Income protection can potentially cover up to 65% of lost earnings.
There are policies which cover either short term or long-term illness. Short-term sickness insurance is more typical, and usually covers between one and two years. Long-term sickness insurance is designed for payout for a minimum of 2 years and a maximum of up until your retirement age. Depending on your health, it’s important to consider which cover is right for you.
How does insurance impact on my sick pay?
It doesn’t. The idea of this type of insurance is to take over to help cover costs when your sick pay ends.
Sick pay can vary. Some employers will provide you with your full salary for a period of time while you are ill, with some of the better packages paying you for up to 12 months.
Otherwise, you can get £94.25 a week from your employer for up to 28 weeks if you qualify for Statutory Sick Pay (SSP).
Before you buy your insurance, you should check what your employer will pay you and for how long. This is because it will affect the waiting period before your insurance payouts start (sometimes called the deferred period) and consequently, the cost of your insurance.
If you’re self-employed you won’t have any sick pay from an employer, so you might want to consider income protection that covers you if you become ill.
Can you get insurance for redundancy?
Should you lose your job, redundancy insurance is a way of securing a regular income to replace your lost wages. After a deferral period, you’ll start receiving a tax-free income to cover your monthly outgoings. These payments typically last up to one year.
What is a deferred period?
This is the time between going off sick or losing your job and being paid your insurance benefits. So, for example, your income protection payments could kick in once you’ve been off work for six weeks. The longer your deferred period, the cheaper your monthly premiums are likely to be.
How can I compare accident, sickness and unemployment protection policies?
It’s easy with our comparison service. Just fill in a few details about yourself and choose what you want to cover – your mortgage payments or your income.
Then pick the kind of cover you’re interested in – unemployment only, accident and sickness or accident, sickness and unemployment. It only takes a few minutes.
You’ll then see a page listing your quotes in price order, with the cheapest at the top. There are also different tabs you can select to see the different kinds of cover and how much they would cost.
But don’t use the price as the main selling point, as sometimes paying a little more will give you much you more cover.