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| Which
is Best Income Protection Insurance or
ASU Cover? |
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Many people think that
Income Protection Insurance and ASU
cover is the same cover but under a
different name. The truth is that each
type of cover are totally different. In
the short article we will look at some
of the differences and when each one is
better than the other. Who should have
income protection insurance and who is
better suited to ASU cover.
An ASU insurance policy is an annual
policy that i s renewed each year like a
car insurance quote. This type of
insurance allows you to cover Accident
Sickness and Unemployment cover.
Accident Sickness only or Unemployment
cover only. If you need to make a claim
then the the policy pays a month sum
assured for between 12 and 24 months.
This is the maximum time frame for ASU
cover.
On the other hand Income Protection
Insurance is not renewed annually
instead it is taken out for a fixed time
frame at the beginning of the plan. Many
income protection policies are taken out
until the age of 65. However one could
take a policy out for any length of time
but typically 10 to 40 years. Unlike ASU
cover which can cover accident sickness
and unemployment cover income protection
only covers your ability to work. If you
cannot work then after the deferred
period of say 3 months then it will pay
out your chosen monthly sum. This income
is paid for until the policy ends so if
you choose a term until age 65 then the
income will be paid for until that age.
Another name for income protection
insurance is permanent health insurance.
If a client thinks that unemployment is
a high risk to them then sometimes they
may take an ASU policy for unemployment
cover only. Then they will take an
income protection policy for their
accident and sickness cover because the
payment period can be much longer on a
income protection insurance quote.
The table below highlights the main
differences between Income Protection
Insurance and ASU cover.
|
|
Income Protection |
ASU Cover |
|
Type of Cover |
Disability (accident and
sickness) |
Disability
(accident and sickness) and
Unemployment can be tailored. |
|
Maximum Monthly Sum Assured |
60% to 70% of gross annual
income |
Total of all
specified outgoings varies from
policy to policy. |
|
Underwriting |
Fully underwritten but this
means chance of paying out high. |
Less
underwriting but this means
chance of paying lower. |
|
Money Used For |
Anything |
There are
specific policies for mortgage
payments, loan payments and
general income. |
|
Proportional Benefit |
If returning to work on a lower
paid job proportional benefit
paid |
None
available. |
|
How Long can you claim? |
Until selected retirement age or
chosen term at beginning of
policy. |
Maximum claim
period of 12 to 24 months. |
|
Number of claims |
Unlimited |
|
|
Waiting Time |
Deferred periods of 4, 8, 13,
26, 52 or 104 weeks. |
Deferred
periods of 30, 60 or 90 days.
Sometimes claims can be paid
back to day 1. |
To ensure that you get ASU or income
protection on the right term, right
deferred period and right cover amounts
make an enquiry using the form to the
right. |
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| Quotes in 3 easy steps: |
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1. You complete the simple form
2. We search the whole of the market
3. You receive quotes |
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- Quotes are FREE and without obligation
- We can put policies in trust for
free.
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| We compare the leading insurers including: |
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Useful Website Sections: |
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Popular ASU Cover Articles: |
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**Take out life insurance before 31st
December 2010 and receive a £25.00 gift voucher. Voucher sent
once 3 months premiums are paid. If you
cancel within this period the voucher
will not be paid. One voucher per
customer. |
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