Accident, Sickness and Unemployment Cover in Leicester
Accident, Sickness and Unemployment Cover in Leicester
The three parts
The cover is built from three components, which can usually be taken together or separately.
Accident — you cannot work due to injury. Sickness — you cannot work due to illness. Unemployment — you lose your job involuntarily, normally through redundancy.
Taking all three gives the broadest short-term protection. Taking unemployment alone suits someone with generous employer sick pay but no redundancy cushion. Taking accident and sickness alone suits the self employed, for whom unemployment cover is harder to obtain.
What it pays, and for how long
A monthly benefit, usually capped as a percentage of your income or at a fixed maximum, after a deferred period — commonly 30, 60 or 90 days.
The crucial limit is duration. ASU pays for a defined period per claim, typically twelve or twenty-four months. It is designed to cover a gap, not a permanent change of circumstances.
One detail worth checking: some policies pay back to day one once the deferred period has been served, while others pay only from the end of it. On a 90-day deferred period that is three months of benefit, and it is not always obvious from the headline description.
The exclusions on the unemployment element
This is where ASU is most often misunderstood, so it is worth being direct.
Initial exclusion period
Unemployment cover almost always has a waiting period after the policy starts — commonly 90 to 180 days — during which a redundancy claim will not be paid. You cannot buy it when you sense trouble coming.
Knowledge of redundancy
If you were aware redundancy was likely or under consultation when you applied, a claim will be declined.
Resignation and dismissal
Voluntary resignation is not covered. Dismissal for misconduct is not covered.
Fixed-term contracts and probation
Often excluded or restricted. If you are on a fixed term, check specifically.
Voluntary redundancy
is treated differently by different insurers — some cover it, some do not.
None of this makes the product poor value. It makes it a product to buy when things are stable, not when they look uncertain.
How it compares
| ASU | Income protection | |
|---|---|---|
| Covers redundancy | Yes | No |
| Covers illness and injury | Yes | Yes |
| Pays for | 12-24 months per claim | Until recovery, retirement or term end |
| Cost | Lower | Higher |
| Underwriting | Usually lighter | Full medical underwriting |
Where budget allows only one, long-term income protection generally does more, because the most financially damaging scenario is a long-term inability to work rather than a period of unemployment. See income protection insurance in Leicester.
Where redundancy is the specific worry — a sector under pressure, or a role that feels exposed — ASU covers something income protection simply does not.
Who it suits locally
Employees in sectors where redundancy is a realistic risk, and households where a few months without income would cause immediate difficulty.
Leicestershire's larger employers in logistics, distribution and manufacturing all restructure periodically, and for households carrying a mortgage on a single income, a twelve-month cushion has real value.
What drives the cost
ASU is generally cheaper than long-term income protection, and four things move the price.
Which elements you take
Unemployment cover is the most expensive component, because redundancy risk is harder to assess than illness. Accident and sickness alone costs noticeably less.
The deferred period
The biggest single lever. Moving from 30 days to 90 days reduces the premium substantially, and if savings or employer sick pay cover that first period, you lose nothing real.
The benefit amount
Capped as a proportion of income, and there is no value in insuring more than you would actually need.
Your occupation
Manual and higher-risk occupations cost more, and some are excluded from the unemployment element altogether.
Underwriting is usually lighter than for long-term income protection — often no medical, with health conditions handled by exclusion rather than assessment. That makes it accessible to people who would struggle to obtain full income protection, which is a genuine point in its favour.
Check what you already have
Before buying, look at your employment contract and any employer benefits. Contractual redundancy pay above the statutory minimum, and generous sick pay, both change what you actually need — and a longer deferred period is the cheapest way to reflect that.
Review it when your job changes
ASU is closely tied to your employment, which makes it the protection product most likely to fall out of step with reality.
Changing employer usually restarts the initial exclusion period on the unemployment element, so a claim shortly after moving jobs may not be paid even though the policy has run for years. Moving from permanent employment to a fixed-term contract, or into self employment, can take you outside the terms entirely.
Tell your insurer when your circumstances change. A policy that no longer matches your employment is a premium paid for nothing.
Speak to us
We will tell you honestly if income protection would serve you better.
Call 0116 277 7536 or book a free consultation.
Cedar House, 3 Broad Street, Enderby, Leicester, LE19 4AA.
Common questions
What does ASU cover actually pay?
A monthly benefit if you cannot work because of accident, sickness or involuntary unemployment. It is short-term, typically paying for twelve or twenty-four months per claim, and the benefit is usually capped as a percentage of your income or at a set monthly figure.
How is it different from income protection?
Two main differences. ASU includes redundancy, which income protection does not. But ASU pays for a limited period, while long-term income protection can pay until you recover or retire. They solve different problems, and many households benefit from the longer-term product.
Can I buy the unemployment part on its own?
Usually yes — the three elements can often be taken separately or in combination. Accident and sickness only, unemployment only, or all three. Unemployment-only cover suits someone who already has good employer sick pay but no redundancy protection.
How long before it starts paying?
There is a deferred period, commonly 30, 60 or 90 days from the date you stop working. Some policies pay back to day one once the deferred period is served; others pay only from the end of it. That distinction matters and is worth checking.
Are there exclusions I should know about?
Several important ones. Unemployment cover usually has an initial exclusion period after you take the policy, commonly 90 to 180 days. It will not pay if you knew redundancy was likely when you applied, if you resign, or if you are dismissed for misconduct. Fixed-term contracts and probation periods may also be excluded.
Can the self employed take it?
Accident and sickness cover, generally yes. Unemployment cover is more difficult for the self employed, since involuntary redundancy is hard to define. Some insurers offer a version based on cessation of trading, but terms are stricter.
Related
Important information
This is a protection policy with no cash-in value at any time. Cover is subject to underwriting and to the terms and exclusions of the individual policy. If you stop paying premiums, cover will end.
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