ASU is designed to provide a financial protection in the event of an individual not being able to work due to the fact they lost their job through no fault of their own, they have fallen ill and are too sick to work or are injured and unable to work.
Individuals will typically receive a proportion of their income for up to 12 to 24 months which can be used to help with their monthly outgoings.
Some policies allow individuals to decide if they just want an accident policy, a sickness policy, an unemployment policy or all three. Most policies will also have a ‘deferment period’ this is the time they must wait before they can start receiving benefits from the ASU policy. This time frame can vary between 30, 60 or 90 days. In some instances, this may be longer. Alternatively, some ASU policies have a waiting period after which time the claim is paid in full. With a 30 day waiting period, on the 31st day of unemployment or disability the claim is back dated to day 1 and paid in full.
Individuals must be over 18 years of age and under 60 years old, residing in the UK, Channel Islands or the Isle of man. They must also be in employment or self-employment for at least 16 hours per week and have been for the last 6 months.