1.  An injury that prevents you from working

2.  A sickness and you are too ill to work
3.  Redundancy or termination through no fault of your own

This type of plan will pay a monthly benefit for 12-24 months after the initial deferred period.  The deferred period typically tends to be 1 month but can be different.  No benefit payment will be made during the chosen deferred period.

This benefit will be lower than your normal net income which you can then use for a variety of purposes such as mortgage payments.  It may be difficult to obtain ASU if you are self-employed, in a new job and elderly.  Likewise an ASU plan may not pay out if you lose your job shortly after taking out cover or if you had knowledge of your impending termination.  Some pre-existing health conditions may also be excluded.

But it can be valuable cover which helps ensure you can meet your basic commitments for the relevant period.

This cover is different to plans such as the infamous PPI.  PPI is Payment Protection Insurance and is normally linked to a specific debt such as a loan or credit card.  Income protection on the other hand is not linked to any particular outgoing, but instead covers a percentage of your income over the longer term.

There are other providers of Payment Protection Insurance [Short-Term Income Protection] and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk

As always discuss your needs and concerns with one of our advisors who will help guide you.