Accident, Sickness & Unemployment
Accident Sickness & Unemployment policies are short-term income protection policies. These usually provide cover for 1 to 2 years and can either cover the cost of a specific debt or provide you with a regular income should you lose your job, have an accident or be diagnosed with an illness that stops you from working.
For example, if you took out a policy that covered your mortgage and then lost your job a year later, your insurance provider would cover the cost of your mortgage payments for you for the remainder of your coverage or up to a specified amount.
Long-term Income Protection
Long-term income protection will provide you with cover for a longer period of time than other income protection policies, however, they will usually exclude cover for unemployment or being made redundant.
For example, if you had a long-term protection policy and had to stop working due to a severe issue with your back 10 years later, your insurance provider would make a regular payment to you to cover your living costs, either up to a maximum amount or until you were able to work again.
By contrast, if you were made redundant your policy would not provide cover and you would not be eligible to make a claim on your policy.