Although it may sound like common sense, it’s important to make sure that your Accident, Sickness and Unemployment (ASU) insurance policy is right for you.
MoneyMarketing has reported that insurance broker LifeSearch believe a number of brokers are incorrectly labelling their ASU products as Income Protection (IP) plans in order to increase sales.
Whilst the average prospect may not know the difference between the two products, they are in fact vast.
To over simplify, ASU is to pay for short term unemployment (usually around 1 year) and is often only paid out when a policy holder is incapable of performing any other occupation. IP on the other hand is a long term policy that caters for those made permanently out of work (or their particular proffession) due to accident or illness.
If you are thinking of purchasing ASU insurance, make sure to discuss the policy with your broker and make sure it’s right for you.
