This policy is designed to provide an income if the insured individual cannot work due to ill health. The premium level will depend upon the benefit and term selected, and most policies cease to pay the use 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 loss of 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 time, for example, 12 months. It is important to compare ASU and Income Protection closely as one may be more suitable than another. Using the two products to work in tandem with each other may also be possible.