ASU Cover Examples
Posted on February 5th, 2011 in Accident Sickness and Unemployment Cover, All Posts, ASU Cover, Ways to Protect Income. Although to some these examples may seem straight forward, however on a regular basis we see clients that have ASU cover but they have various elements of it set up incorrectly. Not every example will apply to all situations it depends on the policyholders attitude to risk and thoughts on their employability.1st example of ASU cover. – John in a factory worker with no sick pay except SSP (Statutory sick pay). However he lost his job around 2 years ago due to redundancy. However he found another suitable employer within a week. John has never been out of work and believes his excellent work record and hard working attitude would allow him to find another job quickly if he became redundant again.
One suitable solution would be for John to take accident and sickness cover only. This would be best done on a 30 day wait period with pay back to day 1. So if John is sick or has an accident after 30 days he will get the sum assured every month. The pay period would be set for 2 years or 24 months as this would allow John extra time to recovery from the accident or sickness.
Another ASU cover solution would be as above but with Unemployment cover added. This would all depend on John’s opinion buy as stated above he believes unemployment is not a problem and he thinks he can get another job quickly.
2nd example of ASU cover. - Mary has worked as a care assistant for 10 years for the same employer. She receives sick pay at full rate for 3 months. She has no savings. Mary is aware that if made redundant she will get 10 weeks wages as a redundancy package. For this reason Mary would like her ASU cover to cover both accident sickness and unemployment. However she wants all 3 of the benefits to start after 3 months. She could live off the redundancy package and sick pay for the first 3 months but after that she would need an ASU policy.
How much cover would John and Mary need. If the policy was a MPPI or (mortgage payment protection policy) then the maximum sum assured would be either of their mortgages plus mortgage related expenses such as endowments, insurance etc. However if they took a standalone ASU policy then they could also cover other expenses such as Council Tax, Loans and Credit Cards, Maintenance Payments, Child Care, Bills, Pension Contributions etc.
Above are just typical scenarios of when and how to use ASU cover for different situations. However to ensure that you get the right cover for your situation it is best to speak to a financial adviser. Fill out the form on the right to get ASU cover insurance quotes now.
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So acording to chat you say the deffered period ought to match the sick pay out is that appropriate?
That’s right for example if you get sick pay for 1 month at full pay then you would want the ASU policy to start to pay you the beneift after this time.