ASU Verse Income Protection
Posted on February 5th, 2011 in Accident Sickness and Unemployment Cover, All Posts, ASU Cover, Ways to Protect Income. 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.
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.
| 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. |
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