Jargon Buster - Definition of Accident, Sickness and Unemployment Insurance

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Accident, Sickness and Unemployment Insurance

provides a tax-free monthly income if you are unable to work as a result of sickness, incapacity or unemployment/redundancy. It is a general insurance policy and usually pays out for a maximum of 12 or 24 months in the event of a claim.

With Accident, Sickness and Unemployment Insurance you often have a choice of deferment periods, i.e. the length of time that you have to be off work before your claim is paid, this is normally:

  • 30 days backdated to day 1
  • 60 days backdated to day 31
  • 90 days backdated to day 61
  • Some companies offer other variations and longer periods

If you choose a longer deferment period your premiums are usually cheaper as a result. Also many companies offer the option to backdate your claim to the first day that you were off work so long as you have been off for the full deferment period.

With unemployment cover, there is often a waiting in period at the start of a policy where you cannot claim, this is often 2-3 month dependant upon the company you choose.

See Also:

Please note that all definitions are intended for general guidance only. For official and current definitions you should always double check your policy wording.

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