Which ASU?

shegee_2

Hi,
I'm very confused about ASU... Currently my husband & I have a joint policy costing around £37 a month for accident, sickness & unemployment. Looking into my work benefits, we've decided to just take the policy out in my husband's name & reduce it to just accident & sickness.

Following Martin's low cost suggestions, I've been to Best Insurance & sure enough, got a super quote. They only pay out for 12 months though. Approx £14

I've also had a quote from my exiting insurer, but it pays out until he reaches 55 (& presumably is unable to work still), but has the nasty 6 month deferred period (which is a bit excessive). Approx £30

So, the question is, do I need the all singing all dancing one or does the government offer help that would make the ££ one redundant?

That might be a stupid question, but I'm confused, although desperate to save money.

Thanks

payless

those policies are 2 totally different animals

dunstonh

As payless says, one is a PHI policy and the other is an ASU.

Give me a decent PHI over ASU any day. A PHI with just "U" is also a valid option.

So, the question is, do I need the all singing all dancing one or does the government offer help that would make the ££ one redundant?

Govt offers no help for 9 months and then only if you have less than £8k in savings/investments and a partner/spouse who isnt working. If you do qualify, the Govt will only pay towards the interest not the capital repayment.

shegee_2

Thanks to you both.
I'm a bit confused though - I went to an IFA to review (amongst other things) our ASU & he advised this £30 policy... NU SafeGuard Income Protection. Are you sure that's PHI?

Shegee

dunstonh

It is a PHI policy. PHI comes in budget, standard and comprehensive forms.

You can spot the PHI by the fact you choose a specified final age.