Accident, Sickness and Unemployment insurance (ASU) - sometimes also known as Mortgage Payment Protection – is a type of insurance policy which will provide you with an income to meet your outgoings for a limited period if you are off work due to long-term sickness, have an accident or are made redundant. It pays out a tax free monthly benefit, usually for a maximum of either 12 or 24 months, to cover your mortgage and other related costs. The cover for unemployment/redundancy is usually a 'bolt-on' extra for an additional premium, but most people taking out this type of policy usually opt for it.

You may choose the amount of benefit you would like to receive - although there are some limits on the maximum amount. Most policies will also have a 'deferment period'. This is the period of time you will have to wait after losing your source of income until you may claim the policy benefit, and is typically 30 or 60 days.

The answer is YES if you are:

· Between 18 and 65 years of age
· Living and working in the UK
· In full-time employment and have been for the last 6 months (at least 16 hours per week), OR
· Self-employed, working for at least 16 hours a week, for profit in a profession or business, alone or with others for at least 6 months prior to the start date (you must also be paying NI and be liable for income tax under schedule D), OR
· A contractor with the same employer for more than six months, where your contract has been renewed at least twice, and where your contract has been terminated early (unemployment benefits will cease at the end of the contract term), or
· A contractor on a yearly contract which has been renewed at least once immediately prior to your being made unemployed.

Not all employers will pay you if you are off sick (due to illness or injury) for more than a short while. If you are lucky enough to have an employer who does pay you, it’s likely that after, say, 6 months, they will only pay you at a reduced rate.

The brutal truth for most self-employed people, and those whose pay is made up mostly of commission, is that if they don’t work, they don’t get paid!

THINK – The majority of home repossessions in the UK are due to the financial problems associated with redundancy or a temporary inability to work. If you are off work due to an accident, it’s possible that you may be able to make a compensation claim, but that process can take months. Yes, you can possibly look to claim state benefits, but they aren’t quite as comprehensive as they once were!

· Although, thankfully, unemployment is relatively low these days, there are still on average 500 people per day in the UK who become unemployed.
· About a third people aged between 25-34 have experienced unemployment for a period in excess of one month.
· Approximately 60% of unemployed men and 45% of unemployed women will be out of work for six months or more.

The costs under (ASU) are usually charged at an amount per month per £100 of cover. Although this looks easy to compare at first glance each policy has a variety of exclusions or additional benefits. Beware - the cheapest premium is not necessarily offering the most comprehensive cover!