Both Payment Protection Insurance and Mortgage Payment Protection Insurance are forms of ASU. Accident, Sickness and Unemployment Insurance is usually taken when someone is concerned about how they would meet their obligations were they to be incapacitated by accident, sickness or unemployment. Not surprisingly then, the majority of people taking on such a policy have debts or other liabilities, the costs of which need to be met, no matter what.

As with all insurance, which is effectively a hedge against risk, factors such as health, age, profession, pastimes and job security will have an effect on the premiums you may need to pay. The other variable is, of course, the size of the liability being insured and the time period for which you need the cover.

Mortgage Payment Protection (MPP) policies will normally only pay out for a maximum of a year, so if you do have sufficient savings in place to tide your over for this length of time, then you may not require cover. In any event, it is worth checking with your employer what you are likely to be entitled to in the event that you are made redundant or taken ill. It is also worth noting that although statutory sick pay doesn’t usually affect short term income protection, anything you receive over & above this (from your employer for example) can affect the benefit payable under the policy. If this is the case, you may be better off going for accident and sickness MPPI cover only. State benefits don’t usually affect this unless they take you over the maximum claim limits, but this is worth checking before taking out a policy.

As a general rule, mortgage protection policies will start paying out either 31 days or 60 days after you are unable to work. However, many policies are ‘back to day one’ plans. This means that the benefit you receive is backdated to the date you were first out of work.

Monthly payments are capped, so if you have a very large mortgage, you will need to think about how you will cover any surplus.Remember that policies will not usually allow claims related to unemployment within the first three or six months so make sure you have savings in place for this period.

Taking an ASU policy can be a prudent way to manage risk. For more information or to speak to an ASU adviser contact us on 01628 507477.

Recent posts

Recent research from Halifax has revealed the most sought-after locations for first time buyers in Britain.  

The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.   

Taking care of your mental health means looking after your emotional, psychological, and social wellbeing. There are several ways we can practice self-care that will help to improve our physical and mental health. This can help to reduce our risk of illness, manage stress, and boost our energy levels!

Buying your first home is very exciting but it can also be very daunting which is why we have set out a “to do list” to help you get started. 

With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19th September to keep the base rate at 5%.

Virgin Money and Hive Energy introduce new "green" mortgage product called Retrofit Boost Mortgage with the aim to help homeowners improve the energy efficiency of their home by offering cashback between £3,000 and £15,000

According to recent findings by LV= where 4,000 UK adults were surveyed, mortgage holders said that were likely to consider equity release to free up some money to take care of expenditures in later life.

Following the recent decision by the Bank of England’s Monetary Policy Committee to cut the base rate from 5.25% to 5% (the first reduction seen in over four years), we have seen lots of lenders reducing their rates to remain competitive.

With August typically being the hottest year of the month, ensuring your garden is getting that extra bit of care is important. Here are some August gardening tips for you to read through - just remember to take the time to sit back and enjoy your garden!