Accident, Sickness and Unemployment (ASU)
Accident, sickness, and unemployment cover, also known as ASU cover, is a type of general insurance that provides a monthly income in the event of an accident, sickness, or redundancy. This type of insurance can help to provide peace of mind and financial security in the face of unexpected circumstances that could leave you without a regular income.
ASU cover is often sold by banks and financial institutions, and it may be offered in various different forms, such as Mortgage Payment Protection Insurance (MPPI) or Payment Protection Insurance (PPI). Regardless of the specific form that it takes, the basic idea behind ASU cover remains the same: to protect your income and provide financial support when you need it most.
If you are unable to work due to an accident, sickness, or redundancy, ASU cover can provide you with a monthly income that can help cover your essential expenses, such as rent or mortgage payments, food, and utilities.
This can help to ease the financial burden and provide you with the support you need to get back on your feet. While ASU insurance has its benefits, it is essential for borrowers to carefully review policy terms, exclusions, and waiting periods before purchasing coverage. It's also worth considering alternative protection options, like Income Protection Insurance and Critical Illness Cover, to ensure they have the most suitable and comprehensive coverage for their needs. Seeking advice from insurance experts, such as those at Austin Friars, can help borrowers make well-informed decisions and find the right insurance plan to protect their mortgage and financial well-being.