Accident Sickness & Unemployment Insurance cover

What is Accident Sickness & Unemployment Insurance cover?

Accident Sickness and Unemployment Insurance cover (ASU) also known as Mortgage Payment Protection (MPPI) is not to be confused with mortgage protection that pays out a cash lump sum if you were to die or suffer a critical illness.

As its name suggests Mortgage Payment Protection provides you an amount of monthly income in order to pay your mortgage payments and associated expenses, such as building and contents insurance, life cover etc... should you become ill, have an accident or be made redundant.

Award Wining Mortgage Payment Protection

Provides reassurance that your mortgage will be paid if you cannot work as a result of sickness accident or redundancy. The waiting period is normally short and the maximum claim duration is typically 12 months.

2008 Best Buy Insurance

If you need Accident Sickness or Unemployment cover that's not mortgage related click here.

Why do I need unemployment or sickness protection?

If you have arranged you mortgage after Oct 1995 under current DSS regulations you would not be eligible for any mortgage interest support from the government for a period of 9 months. Those that are eligible the DSS will only pay the interest only element of your loan for the first £200,000 of your mortgage.

If your partner works more than 16 hours per week you are unlikely to get any financial support from the DSS.

Its easy to see how quickly you can get into financial difficulty, even if you can access your savings, why should you when the cost of protecting your mortgage payments is so affordable.

Accident Sickness and Unemployment insurance cover has therefore been designed to provide you with temporary cover should you become ill have an accident or become unemployed as a result or redundancy and will normally pay the benefits for a claim period of 12-months.

What is not usually covered?

Accident Sickness and Unemployment Insurance does not usually cover any medical conditions you know about at the start of the policy. It will not cover every type of illness. You cannot normally claim for unemployment if you:-

Resign
Accept voluntary redundancy
Lose your job because of something you do that breaks the conditions of your employment contract

You usually have to have had the policy for a certain period of time before you can claim typically 120 days. It is therefore important you read the policy summary and the policy document to check exactly what is and is not covered.

Why is the Accident Sickness and Unemployment cover so cheap?

As we don't get paid the full amount of commission you don't pay the full standard cost of the cover on offer by the insurance company direct.

Financial Services Compensation Limits

Should a company you have general insurance with become insolvent and you suffer a financial loss and need to claim under current Financial Services Compensation Limits you could claim.

Compulsory insurance (e.g. third party motor): 100% of the claim. Non-compulsory insurance (e.g. home and general): 100% of the first £2,000 plus 90% of the remainder of the claim.

What you need to do if you are made unemployed / redundant

As soon as you are made aware that you are to be made redundant contact the Job Centre for advice and to sign on as seeking work at the earliest opportunity. As most providers will not start processing your claim under unemployment insurance cover until you have registered as seeking employment with the job centre.