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Accident Sickness & Unemployment (Redundancy)

ASU or MPPI (Mortgage Payment Protection Insurance) is the industry name given to these types of contracts.

They typically pay out a monthly amount in the event of accident sickness or redundancy. The amount paid is normally for a short period of time, one or possibly two years.

They can be arranged in different permutations, for example you may not want the accident and sickness part, just the redundancy or vice-versa. Your premium will be based on what cover you have and how much you want it to pay out.

This contracts have been criticised in the past for not paying in some cases. As with any insurance its all about understanding what it does, how it works and disclosure. Admittedly an adviser could be criticised for selling a ASU policy where the likelihood of claiming is remote, for example to someone in the public sector or a self-employed person!