Accident, Sickness and Unemployment Cover
Times have changed, the days of being able to rely on government benefits to look after you when you can’t work are gone so you should consider making your own provisions to make sure your income is protected in the event of an accident, illness or redundancy. Even if you have some savings set aside, these could disappear quite quickly once they are being used for your monthly outgoings, food shopping and transport costs, so you might want to consider accident, sickness and unemployment cover.
It’s not a nice thing to think about, but it’s important to plan for, especially if you have monthly financial commitments such as mortgage or rent, loans or other debts, or have children to support and bills to pay.
So it’s worth asking yourself how you might pay the bills with no income coming in.
What are the different types of Accident, Sickness and Unemployment?
Accident, Sickness and Unemployment insurance describes what you are covered against rather than what you are actually covering. This product can be called by other titles (Mortgage Payment Protection, Loan Payment Protection or Income Protection).
There are three main types of cover:
Accident and sickness only, unemployment only and accident, sickness and unemployment combined. 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 accident and sickness.
How much cover do I need?
You can choose a sum that represents your mortgage amount or your total bills. Most insurers allow you to cover 50% of your gross (before tax is deducted) pay but some go up to as much as 65%
How long would you want the policy to pay for?
Again, you can choose between 6 months, 12 months and 24 months but 12 months is the most common.
How does this impact on my sick pay?
It doesn’t. The idea of this insurance is to take over when you’re sick pay ends.
Some employers will provide you with your salary for a period of time after you are ill, with some of the better packages paying you for up to 12 months. Others have little or no sick pay, so you should check what your employer will pay you and for how long. The longer you receive an employer benefit, the longer the deferment period on your pay out could be which allows the cost to be lower- some policies may also not pay out if you are still in receipt of your salary.
If you’re self-employed you will have no benefits from an employer so income protection to cover you should you get sick should be something that you consider.
How do I compare Accident, Sickness and Unemployment Protection policies?
The good news is that it’s easy to compare the different levels of cover and prices with our Accident, Sickness and Unemployment insurance comparison service. Just fill in a few details about yourself and the kind of cover you are interested in. 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 view 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.
I’m not sure where to start, can I just talk to someone?
Our friendly advisers at Assured Futures understand that Accident, Sickness and Unemployment insurance can be complicated and daunting, and they are at the end of the phone waiting to help. Please call Freephone 0808 141 1332.