Accident, Sickness & Unemployment insurance
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Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
14.05.2025
Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
14.05.2025
Worried about what would happen to your finances if you get ill or injured and are unable to work, or you lose your job?
Having the right insurance cover in place can help you sleep easy at night, knowing that your bills will be paid and your family’s finances protected.
Here at Ascot Mortgages, we can help you put this crucial safety net in place. Our experienced advisers will search the market for an accident, sickness and unemployment insurance policy that meets your needs and budget exactly. Get in touch to get started.
What Is Accident, Sickness and Unemployment Insurance?
Accident, sickness and unemployment insurance (ASU) is a type of policy designed to protect your income if you’re unable to work due to illness, an accident, or if you become unemployed.
It ensures that you receive regular payments to cover essential expenses such as your mortgage, rent, and bills while you’re out of work.
This form of insurance offers a valuable safety net during difficult times, allowing you to focus on recovery or finding new employment without worrying about immediate financial hardship.
What Does Accident, Sickness and Unemployment Insurance Cover?
ASU insurance generally covers three key areas:
- Accident: If you’re injured and unable to work, your policy will pay out a percentage of your income.
- Sickness: If you fall ill and are unable to work for an extended period, sickness insurance ensures you receive a regular payout while you recover.
- Unemployment: If you lose your job through no fault of your own, such as redundancy, ASU provides a financial cushion.
Policies often include sick pay cover, ensuring you have a backup plan in case you’re unable to claim statutory sick pay. The payout period typically lasts for 12 months, but longer-term cover is available.
What's Not Covered by Accident, Sickness and Unemployment Insurance?
While accident, sickness and unemployment insurance offers broad protection, there are several key exclusions to be aware of:
- Pre-existing conditions: Illnesses or injuries you had before taking out the policy are generally not covered.
- Voluntary unemployment: If you leave your job voluntarily, most ASU policies will not pay out.
- Misconduct-related unemployment: You won’t be covered if you’re dismissed due to gross misconduct.
- Short-term illness: If you fall ill but recover quickly (within the policy’s deferred period), you may not be eligible to claim.
- Redundancies announced prior to the policy: If you know your job is at risk before you take out the policy, redundancy cover will not apply.
- Self-inflicted illnesses or injuries: If you need to take time off work because of an illness or injury caused by reckless behaviour or another self-inflicted cause.
Always check your policy documents carefully to understand the specific exclusions that apply.
How Does Accident, Sickness and Unemployment Cover Work?
When you take out an unemployment, sickness and accident protection insurance policy, you agree to pay a monthly premium in exchange for income protection. If you are unable to work due to an accident, illness, or job loss, the policy will provide a percentage of your salary (typically between 50% and 70%) during your period of downtime. This payout is intended to help cover essential expenses, such as:
- Mortgage or rent payments
- Utility bills
- Daily living costs
The payments generally continue for up to 12 months, though some policies may offer shorter or longer periods depending on your cover.
Do I Need ASU Insurance?
Whether or not you need ASU insurance depends on your financial situation and job security. If you don’t have significant savings or other forms of financial support, ASU can offer valuable protection, particularly if you’re concerned about redundancy or the risk of long-term illness. For those without access to substantial sick pay insurance or savings, this type of cover provides peace of mind that you’ll have income even when you’re out of work.
Am I Eligible for ASU Cover?
To be eligible for ASU insurance, you must generally:
- Be in full-time employment at the time of taking out the policy.
- Not be aware of any pending redundancies or health conditions that might lead to a claim.
- Be under a certain age limit (usually 65).
Can I Get Unemployment Protection Insurance If I’m Self-Employed?
Unfortunately, self-employed individuals may not qualify for unemployment cover, but can still benefit from accident and sickness protection.
So if you’re self-employed and are worried about losing business or revenue, you might want to look into other types of cover such as self-employed loss of earnings insurance.
Accident and Sickness Insurance for the Self-Employed
Self-employed individuals can usually take out accident sickness and unemployment insurance, though unemployment cover may not be available to them.
There are also other types of cover which can help freelancers, sole traders and contract workers to protect their income in case of unexpected scenarios. For example, with self-employed income protection insurance.
How Much Does Unemployment Protection Insurance Cost?
The cost of ASU insurance protection depends on a number of different factors, such as:
- Your age, state of health and what kind of job you have (insurers may view some roles as riskier than others)
- If you have pre-existing or chronic health conditions
- The amount of cover you choose
- The deferment period you opt for
- Whether cover is short-term or long-term.
Ultimately, the only way to know the true cost of ASU insurance is to get some quotes. Contact Ascot Mortgages to get started.
How Much ASU Cover Do I Need?
The amount of ASU cover you need depends on:
- Your monthly outgoings: Consider how much you need to cover essential expenses such as your mortgage, rent, utilities, and food.
- Your income: Most policies cover a percentage of your income, usually between 50% and 70%. Calculate how much you would need to comfortably live on if you were out of work.
- The duration of cover: ASU policies typically pay out for 12 months, though longer-term policies are available.
What Types of Accident and Sickness Insurance Are Available?
There are different types of ASU policies to choose from, depending on your circumstances:
- Sickness and accident insurance only: Covers you if you’re unable to work due to illness or injury.
- Unemployment protection insurance only: Protects your income if you lose your job due to redundancy.
- Combined accident, sickness, and unemployment insurance: Offers the most comprehensive cover for all three scenarios.
There are short-term and long-term policies too. Short-term covers your income for a set period (usually up to 2 years) while long-term policies will provide cover all the way up to retirement age.
When Can I Claim on ASU Insurance?
You can claim on accident, sickness and unemployment insurance if you meet the policy’s conditions. Most policies have a deferred period, which is the time between when you stop working and when the policy starts to pay out. The deferred period can vary from 30 days to 90 days, depending on the terms of your cover.
You may be able to choose a shorter waiting/deferred period when you take out the policy, but bear in mind that this will usually mean higher premiums.
What Other Types of Income Protection Are Available?
If ASU doesn’t suit your needs, you might want to consider other forms of income protection, such as:
- Income protection insurance: This provides long-term cover if you are unable to work due to illness or injury.
- Critical illness cover: Pays out a lump sum if you are diagnosed with a serious illness.
What Do I Need to Get an Unemployment, Sickness and Accident Protection Insurance Quote?
To get an ASU insurance quote, you’ll typically need:
- Your employment status: Whether you’re employed full-time or self-employed.
- Your income details: The amount you’d like to protect.
- Your mortgage or rent: To ensure your essential bills are covered.
Comparing quotes from different providers will help you find the best ASU insurance policy for your needs.
The good news is that you don’t have to spend the time and effort contacting providers and getting quotes yourself. Use Ascot Mortgages and our experienced brokers will take care of everything, from understanding your needs to scouring the market for quotes. We’ll even handle the paperwork.
Why Use Ascot Mortgages for ASU Insurance?
At Ascot Mortgages, we understand the challenges that come with being unable to work due to illness, accident, or unemployment.
Our expert team is here to guide you through finding the best accident, sickness and unemployment insurance policy for your individual needs. We work with top providers to help you compare ASU insurance quotes and ensure you receive the most competitive and comprehensive coverage available.
Whether you’re looking for sick pay insurance or complete work insurance protection, we are here to help you make an informed decision and secure your financial future.
Get in touch to arrange your free initial consultation – and we’ll do the rest.
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Your Unemployment, Sickness and Accident Insurance Questions Answered
Most ASU insurance policies pay out for up to 12 months, but you can choose shorter or longer payout periods depending on the policy you select.
No, ASU insurance is different from PPI. While PPI covers specific loans or debts, ASU insurance protects a portion of your monthly income and can be used for any expenses.
Yes, accident and sickness insurance covers you if you are unable to work due to illness. Your policy will pay out a percentage of your income during your recovery period.
If you receive sick pay insurance from your employer, ASU cover can complement this by paying out additional income. You may need to check your policy to ensure you’re not over-insured, as this could affect your premiums.
Yes, ASU insurance is often used to cover mortgage payments and other essential bills if you’re unable to work.
Yes, many ASU policies include redundancy cover, which protects you if you lose your job due to factors beyond your control, such as company restructuring.
Your eligibility for sickness insurance depends on your health and medical history. Some policies may exclude pre-existing conditions, so it’s essential to read the terms carefully.
To compare accident, sickness and unemployment protection policies, you should consider:
- Monthly premiums
- Coverage limits
- Deferral periods
- Exclusions and conditions
Use comparison websites or speak with an insurance broker to find the best policy for your needs.
If you don’t have significant savings or access to other forms of financial support, ASU insurance can provide a vital safety net during times of unexpected illness, injury, or job loss.
To claim on your ASU insurance, you will need to:
- Contact your insurance provider as soon as possible.
- Provide evidence of your illness, accident, or redundancy.
- Submit the required documents to support your claim, such as medical records or a redundancy letter.
If you’ve changed your mind about unemployment, sickness and accident protection insurance cover or your circumstances have changed, you’ll usually have around 30 days to cancel your policy for a full refund. After this period, you can cancel your policy but you may not receive a refund.
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