Imagine what it would be like if you were to lose your job, you would soon have to think about how you are going to pay your monthly bills. You would need to ensure that you had your monthly outgoings covered in order to keep a roof over you head and look after your family should you have one. One main concern maybe for example, your monthly mortgage repayments. Consequently, this is where it would be helpful to have Accident Sickness Insurance and in the changing economy this would make great sense. Accident Sickness cover is one of the most flexible plans available to you on the market. You may get made redundant through no fault of your own and in the current market you may find that your current job is not secure resulting in fundamental change in circumstances.
Accident Sickness Insurance would then typically cover you for an agreed monthly benefit for up to a twelve month period where you choose how much you want to be covered for. However you may only cover yourself for a limited amount of benefit either 65% of your monthly earnings or up to a maximum of about two and a half thousand pounds a month. As the cover is typically aimed at providing protection for a maximum of twelve months, it is reasonably cheap to take out such cover. If you were then to be made redundant or have an accident resulting in you being unable to work, you could then use this monthly benefit to help pay towards your monthly outgoings whether it be to feed your family, pay your gas and electricity bill, any credit card bills or loans, council tax or any other utility bills.
When taking out Accident and Sickness Insurance you can either take out the policy on a thirty back to day one basis, sixty back to day thirty one or ninety back to day sixty one. However the last two could be applied on a back to day one basis depending on the Accident Sickness Insurance Quote you require. With a thirty back to day one plan, an individual would need to be incapacitated or out of work for thirty consecutive days with benefit being payable from day thirty one back dated to day one. Effectively your Accident and Sickness Plan will be paid one month in arrears.
In order to make a claim, when taking out Accident Sickness Cover, you need to get both your doctor and your current employer to fill in the relevant forms if you are claiming under accident sickness. You will also have to agree to a medical examination arranged through your provider. If you were to be made redundant you would need your employer and a Department for Work and Pensions official to also fill in the relevant section on the forms. You need to ensure that when making a claim you fill in all the required information otherwise your claim under any Accident and Sickness Plan may be suspended or delayed. Also, if you were to claim under Unemployment it may be necessary that you have a Jobseekers Agreement throughout the period of time you are making a claim. Any claim will be paid directly to yourself. With any Accident Sickness Quote if you were to make a claim you still need to continue to pay your monthly premiums in order for the cover to carry on until your claim ceases to exist. Your provider will also continue to pay your claim until you are back in employment or have recovered from any accident or sickness, you reach the age of 65, your mortgage has been repaid, you die or you make a false claim.
Accident Sickness Insurance should not be confused with Mortgage Life Insurance. Mortgage Life Insurance is where you take out a policy to cover you in the event of your death to protect your family. Who then may use the money to pay off any outstanding payments on your mortgage or use it pay off any loans or credit card bills. This particular type of cover works by paying out a lump sum in the event of your death to your next of kin and is typically more expensive than taking out an Accident & Sickness insurance Policy. On average when deciding to take out Life Insurance the lump sum benefit is normally the outstanding value on your mortgage. Mortgage Life Insurance is also taken out over several years for example up to retirement, where as Accident Sickness Cover is where you take out a policy to cover you if you were to be made redundant or have an accident resulting in you not being able to work and therefore cover you on a monthly basis rather than a lump sum at the end of the term so that and you can pay your monthly outgoings (repayments).
Accident sickness unemployment insurance, also known as ASU, is used to cover a host of living expenses in the event you become injured or sick and unable to work at your job. It can also be used if you become redundant through no fault of your own. The insurance payments can be used to cover your mortgage or other living expenses until you are able to work and support yourself once again. Accident and sickness insurance offers peace of mind to individuals in knowing that if illness or an injury happens to them, their homes and families would be properly protected.
Who is Eligible for Accident Sickness Insurance?
Accident sickness cover is available to most Brits today, and is usually purchased by those who are concerned about how their bills would be paid if they were unable to work due to accident, illness or redundancy. The specific criteria for these policies include:
- Individuals between the ages of 18 and 65
- Permanent residents of the UK
- Individuals working in the UK at the start of the policy and for at least six months prior at a minimum of 16 hours per week
To qualify for unemployment cover, you must become redundant through no fault of your own. If you are self-employed, your company must stop doing business completely and register with the Inland Revenue and Job Center to be eligible for accident sickness redundancy insurance. Individuals who want mortgage cover must be party to a mortgage agreement in which they are not in arrears.
Unlike other types of insurance policies, applicants for accident sickness unemployment insurance are not rejected because they smoke, drink or make other lifestyle choices that are considered unhealthy. As long as applicants fall within the broad age guidelines listed above, they will not be turned down for cover based on their age either. The primary reason for being rejected for this type of insurance cover is simply the fact that this policy may not be the right choice for an individual based on his financial situation or other insurance policies he currently owns.
What is Included under Accident and Sickness Insurance?
There are different types of accident & sickness insurance, and the type you choose will determine what is covered under the policy. Accident sickness cover falls under three basic types:
- Those that cover mortgage payments
- Those that cover other types of debt obligations
- Those that cover basic living expenses
If you choose an accident sickness redundancy insurance policy that covers basic living expenses, you can use the benefits in just about any way you choose. On the other hand, insurance specifically slated for mortgage payments must be used for that purpose. However, mortgage insurance under these policies should not be confused with mortgage life insurance, which pays out a lump sum to cover your mortgage in the event of your death. Accident & sickness insurance is used for a short term fix to cover mortgage payments until you are able to return to work and make the payments from your regular income once again.
What are the Options?
Accident sickness redundancy insurance comes with a few different options so you can customize your policy to meet your specific needs and budget. This is typically a short-term insurance policy that covers you for anywhere from 12 to 24 months. You can choose the length of cover, based on how much cover you want and the premiums you can afford.
The other variable to consider with an accident and sickness insurance policy is when you want the benefits to kick in. Common options include:
- 30 days that date back to day one
- 60 days that date back to day 31
- 90 days that date back to day 61
The 60 and 90 day payouts can also date back to day one, if you prefer. This basically means that the policy will begin to pay out 30, 60 or 90 days from the date of injury, illness or redundancy.
The payments will cover the amount of time from the date of injury, illness or redundancy, or a period of time from that date. The policy you choose will vary in terms of how quickly you receive payments and how costly the premiums for the policy are. More expensive policies tend to pay out much sooner. If you have savings to cover you for a period of time, it might be best to pay less for a policy that doesn't begin paying out for a month or two.
What Happens when I Need Payments?
If you become sick, injured or redundant while you hold your accident and sickness cover, you can request to receive your insurance payments. If you are sick or injured and unable to work for a period of time, your insurance company will probably require both your doctor and your employer to fill out the proper forms in order to receive your insurance payments. If you become redundant, your employer will need to provide documentation that you lost your job through no fault of your own. Benefits may continue until you return to work, die, repay your mortgage or reach the age of 65.
One of the biggest benefits to accident sickness insurance is that you can receive other benefits at the same time you collect payments on your insurance policy. For example, if you become sick or injured, you can file to receive benefits from your accident sickness cover, as well as sick leave you are entitled to from your employer. This ensures you will have sufficient income to pay all your bills until you are healed and able to return to full-time employment once again.
Benefits of Accident & Sickness Insurance
There are many reasons to consider accident and sickness insurance. Some of the benefits of this type of insurance policy include:
- People holding mortgages purchased after October1995 are not eligible for government help if they are unable to make their payments for any reason. Insurance coverage can be used in these circumstances to cover the mortgage until you are bringing in a regular income once again.
- This type of insurance policy covers other expenses than just your mortgage. This allows you to keep up with all of your expenses when you find yourself out of work through no fault of your own.
- Most people are eligible for this type of coverage, regardless of age and lifestyle choices that might affect other types of life insurance eligibility.
- If you do not have sufficient sick pay through your employer, this insurance policy can cover you during the time you are unable to work.
- If you are the primary breadwinner of your family, you can continue to support your family even when you are unable to work due to sickness, injury or redundancy. This takes pressure off of your spouse and other members of your household in the even you become unable to bring in a steady paycheck for a period of time.
There are many good reasons to consider accident & sickness insurance today. The peace of mind in knowing that your bills will be covered in the event of your injury, illness or redundancy can be a great comfort in uncertain economic times. The ability to manipulate the terms and premium amounts of these policies allows individuals to customize cover to their unique needs and budget. Accident sickness cover is a good way to protect your family and your home from unforeseen circumstances.
