Accident sickness and unemployment cover, frequently abbreviated as ASU, helps protect you financially in the event of an illness, an accident or a redundancy. Both payment protection insurance and mortgage payment protection insurance are bundled under the ASU heading. Each plan has slightly different features that benefit policy holders in different ways.
Payment Protection Insurance
ASU plans that focus on payment protection usually are structured to help pay off a particular debt or loan. The benefits from the ASU begin after a traumatic event has occurred and generally last for a predetermined amount of time. This time can vary but tends to be between one to three years in length.
The policy is beneficial primarily to those who are worried about the security of their position within a given company. If you are currently employed in an industry that has suffered exceptional redundancies, you may be at a greater risk of becoming redundant yourself. Payment protection insurance will allow you to continue making payments on long-term loans or other financial commitments if you suddenly lose your job.
If a sudden illness or traumatic accident befalls you, ASU insurance will help supplement any differences in income until you can recover. Most plans have benefits that cover up to 65 percent of your gross monthly income. A PPI can help you from defaulting on long-term structured debt in a difficult financial time.
Mortgage Payment Protection Insurance
Mortgage payment protection is geared specifically toward covering home loans. It differs from a payment protection plan in that it generally has a higher benefit pay out structure. Some mortgage payment plans pay out to 75 percent of your gross monthly income. These benefits are structured to cover the mortgage payment along with a percentage of traditional household expenses.
This plan is beneficial for people with families who wish to maintain a certain standard of living. Nothing is more harmful to a family’s well-being than having to renounce everything they own due to a change in their primary income source. By purchasing mortgage payment protection insurance, you can guarantee that your family will be able to live in the style to which they are accustomed no matter what surprises life may have in store for you.
Whether you have a mortgage or another form of long-term debt, each ASU plan is customisable. You should speak to one our agents to find the terms that suit your specific financial needs.