ASU Cover Guides & Advice

Accident, Sickness and Unemployment cover is a short-term policy designed to pay a monthly benefit if you cannot work due to a qualifying accident or sickness, or if you become involuntarily unemployed and meet the policy terms. Benefits normally start after a waiting period and are paid for a limited duration. Cover, exclusions and eligibility vary significantly between providers.

Unemployment sections can cover involuntary redundancy, but not every loss of work qualifies. Voluntary redundancy, resignation, dismissal for misconduct, known or anticipated redundancy and the end of some fixed-term or temporary contracts are commonly excluded. A policy usually has an initial exclusion period. Read the definition of unemployment and disclose any workplace announcements or concerns before applying.

Accident, Sickness and Unemployment policies are generally short term and may pay for up to 12 or 24 months per claim, depending on the policy. Payments begin only after the waiting or excess period and stop when you return to work, reach the claim limit or no longer satisfy the conditions. It is not a replacement for long-term income protection.

The waiting period is the time after you stop working before benefit becomes payable. Policies may also pay retrospectively to the first day after a specified period, or only from the end of that period. A separate initial exclusion period can apply after the policy starts, particularly for unemployment claims. Check both provisions carefully.

Accident and sickness cover may be available to self-employed applicants, but unemployment cover is more restricted because redundancy does not apply in the same way. Some policies use business failure or involuntary cessation definitions with specific evidence requirements. Eligibility and claim criteria must be checked carefully; income protection may address long-term illness more comprehensively.

Pre-existing conditions and related symptoms are often excluded, particularly where treatment or advice occurred within a specified period before the policy began. Some policies may reconsider an exclusion after a symptom-free period. Definitions vary, so answer all health questions accurately and read the exclusion wording rather than assuming a condition is covered.

Accident, Sickness and Unemployment is usually short term and may include involuntary unemployment, while income protection focuses on illness or injury and can provide longer-term benefits. Income protection often uses detailed occupational incapacity definitions and medical underwriting. ASU may use broader exclusions and shorter claim limits. The right product depends on the risk, existing sick pay, employment type and budget.

Check eligibility, employment status definitions, waiting and initial exclusion periods, claim duration, benefit limits, pre-existing condition rules and circumstances excluded from unemployment cover. Confirm how employer sick pay or other income affects benefits. The lowest premium may not provide the most appropriate terms, and cover should be reviewed if your employment changes.