Life is unpredictable, and unforeseen circumstances can disrupt our financial stability. Accidents, sickness, and unemployment are unfortunate events that can impact individuals both physically and financially. In times of crisis, having a safety net becomes crucial. This is where Accident, Sickness, and Unemployment Insurance (ASU) steps in to provide a financial cushion during challenging times.
What is Accident, Sickness, and Unemployment Insurance?
Accident, sickness, and unemployment [ASU] insurance is a short-term protection policy that provides you with a monthly income if, for any reason, you are unable to work, and they give monthly income for a period of 12 and 24 months.
It provides financial support for individuals who cannot work due to illness or accident. Most people see it as some sort of policy that pays tax-free proportions to their lost salary every month to help cover their living expenses until they can cater for themselves.
When you fall sick or get involved in an accident, it means you cannot go to work for a while. Now, if you cannot go back to work, who will pay your rent, mortgage, mobile phones, pets, clothing, cars, and other bills? This is where accidents, sickness, and unemployment come in. This policy allows you to pay all your bills for the month until you are back on your feet.
Why do I need Accident, Sickness and Unemployment insurance?
Accident, sickness, and unemployment insurance are very important types of insurance. When you purchase this insurance, you are simply investing in your well-being and future. It will also relieve you of unnecessary stress and financial difficulty. You can never know what will happen in the future. So it is better to secure your future now by purchasing ASU insurance.
How does Accident, Sickness and unemployment insurance work?
It is very simple, but first you have to decide to purchase ASU. Once you have made up your mind to purchase, you will do your research and find out more about this insurance.
You will need to read the key facts and policy wording document and ensure you meet the eligibility requirements before you start purchasing.
After that, you will be asked a list of questions about your situation, and then you will set up a direct debit in order for your monthly payments to be removed. Note: Your accident, sickness, and unemployment policy will continue as long as you are paying your monthly premium payments.
Benefits of Accident, Sickness, and Unemployment Insurance
ASU comes with a lot of benefits, and if you have yet to purchase your policy, then I think you are missing out. Here are the benefits of purchasing accident, sickness, and unemployment insurance.
- Access to confidential telephone counseling
- Monthly tax-free income in the event of an accident or illness
- No proof of outgoings required.
- Cover is available for up to 12 months.
- Peace of mind
- Financial stability
The benefit of purchasing ASU is that when you become sick, involved in an accident, or unemployed, you will get monthly benefits paid to you.
What Does Accident, Sickness and Unemployment Insurance Cover?
Do you plan on purchasing ASU insurance? If you do, this is the coverage it offers.
• Accidents
In a situation where you were involved in an accident, making you unable to work, ASU will cover all the expenses you need to pay within that period of not working.
• Unemployment
When you are out of a job for a period of time, you will be unable to pay your bills or cater for your needs. But ASU fills in for you during this period.
• Sickness
It covers you when you fall ill. Most times, you might be critically ill to the extent that you can’t work anymore. ASU will fill in for you so that you can be able to pay your bills like mortgage, rent, utility bills, feeding, etc.
What Does Accident, Sickness, and Unemployment Insurance not Cover?
There are some coverages that are not available in your accident, sickness, and unemployment insurance, and they include
• Pre-existing Conditions
If you have any pre-existing conditions, your ASU insurance will not cover them. For instance, if you fall ill due to a pre-diagnosed condition like cancer, tumor, etc., ASU insurance coverage will not cover your expenses during this period.
• Voluntary Job Loss
When you voluntarily quit your job, your accident, sickness, and unemployment insurance will not cover you. And if you don’t get a job immediately, there will be no way to sort out your bills.
• Job Loss
ASU insurance does not cover job losses if you are fired from your position.
• Misuse of Drugs or Alcohol
If you have any health condition that came about as a result of drugs or alcohol and prevented you from working, your insurance will not cover you for this kind of condition.
• Normal Pregnancy and Childbirth
Normal pregnancy and childbirth can make you stop working for a while, but your ASU insurance policy will not provide you with any benefit.
Before you can qualify for accident, sickness, and unemployment insurance, you must be over 18 years of age, have worked for at least 12 months, and also be in full-time or part-time employment. Aside from that, you must be a UK resident with a legal right to work in the UK.
FAQs
Am I Eligible for Accident, Sickness, and Unemployment Cover?
One of the eligibility criteria for accident, sickness, and unemployment cover is that you must be over 18 and below the age of 65. Also, you must be working and have a steady income.
Can I Get Accident, Sickness, and Unemployment Insurance if I am Self-employed?
Yes, you can! Accident, sickness, and unemployment policies are available to people who are self-employed. If you run your own business, this means you have a steady income. When purchasing ASU insurance, you need to specify your employment status with your insurer.
Will My Accident, Sickness, and Unemployment Cover Premiums Increase?
Yes, it will increase! Your insurance premium will increase with just a 30-day notice given by your insurer. Your insurer will definitely give you 30 days’ notice before your premium increases.
