When choosing your income protection insurance policy (also known as ASU, or accident, sickness and unemployment insurance), there are 3 main cover options for you to choose from. They will determine how the policy works, and when it may pay out. You'll need to decide on one (or a combination) of types of protection below:
- Illness - for cover against sickness and being unable to work
- Accident - protection against accidents leaving you unable to work
- Unemployment - losing your job
These insurance policies are designed to help you pay your bills if any of the above should happen, so that you can maintain your standard of living while you're not able to work.
By paying a monthly premium, if any of those circumstances were to happen, your policy would kick in to allow you to cover your bills, such as your monthly mortgage or rent, loan/credit card repayments or utility bills.