What is the Difference Between Income Protection Insurance and Accident, Sickness and Unemployment (Redundancy) Cover?
Income Protection Insurance is a long term policy that covers for health related work absence, not redundancy. The policies will last until your desired retirement age and can be claimed on multiple times (even for the same illness/disability). For example a 25 year old who claims on an Income Protection Policy could receive a tax-free income for the next 25-45 years, depending on his selected retirement age and if he returned to work at a lower salary he could claim a proportional benefit. Accident, Sickness and Unemployment (ASU) Policies are shorter term than Income Protection Insurance and can only be claimed for a maximum of 1-2 years, depending on the company. ASU Policies have the advantage that redundancy cover can be incorperated for employed persons only, meaning that you can claim on the policy should you be made redundant from you occupation. ASU policies can either be linked directly to mortgage payments, loan payments or general bills/income. The final difference between
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