Income Protection

This policy is designed to provide an income (after a defined waiting period) in the event the insured individual is unable to work due to ill health or accident. The level of premium will depend upon the amount of benefit and term selected as well as the individual’s age and health. Most policies cease to pay the benefit once the insured can return to work. Income protection policies are usually written to retirement age or 60 if earlier.

Accident, Sickness & Unemployment (ASU)  

ASU policies were traditionally sold to accompany mortgages, allowing for a regular income to be paid to the insured should they be unable to work due to ill health, an accident or lose their job. The product can be split down, and unemployment cover is usually the optional extra available for an additional premium. Benefits are only usually paid for a specified period, for example 12 months. It is important to compare ASU and Income Protection closely as one may be more suitable than another. It may also be beneficial to use the two products to work in tandem with each other.