When thinking about protecting your income, two of the most common options are Income Protection (usually arranged through Protect ME) and ASU – Accident, Sickness & Unemployment cover.
On the surface, these two types of cover can look similar. They both aim to support you financially if you’re unable to work. But they work in very different ways — and understanding those differences can help you decide what might be worth looking into as part of your wider protection plan.
This guide explains each type clearly, compares them side by side, and highlights key things to consider — especially for home movers, homeowners and general consumers aged 25–50.
What Is Income Protection?
Income Protection is designed to pay out a regular monthly benefit if you’re unable to work due to illness or injury.
Key features:
- Covers illness and injury (not unemployment)
- Can pay out long-term — potentially to the end of the policy
- Benefit often replaces 50–60% of your income
- Can align with your employer sick-pay through a deferment period
- Portable: stays with you when you change jobs
- Often medically underwritten
- Premiums usually fixed depending on policy type
Income Protection is considered a strong option for long-term, illness-based protection. However, if someone has pre-existing medical conditions, underwriting can affect terms, exclusions, or availability, which is where ASU may become a consideration.
What Is ASU (Accident, Sickness & Unemployment)?
ASU is a short-term policy that can cover you if you’re unable to work due to accident, sickness, or involuntary redundancy.
Key features:
- Covers accident, sickness AND unemployment (redundancy)
- Pays out for short-term periods (often 12–24 months)
- Can be easier to obtain for people with some pre-existing medical conditions
- Often linked to your monthly mortgage repayment
- Typically not medically underwritten in the same way as Income Protection
- Premiums can change with age or economic conditions
- Considered more short-term and budget-friendly
ASU is often arranged through ME Financial, and is especially relevant for people who want unemployment cover or who may not qualify for traditional Income Protection.
Income Protection vs ASU: Side-by-Side Comparison
| Feature | Income Protection (IP) | ASU (Accident, Sickness & Unemployment) |
|---|---|---|
| What it covers | Illness & injury | Accident, sickness & redundancy |
| Payout length | Long-term (potentially to retirement age) | Short-term (usually 12–24 months) |
| Underwriting | Medical underwriting | Often simpler, may accept some conditions |
| Unemployment cover | ❌ No | ✔️ Yes |
| Premiums | Typically fixed | Can increase over time |
| Job changes | Policy stays with you | Policy may depend on employment status |
| Redundancy protection | ❌ Not included | ✔️ Included |
| Best for | Long-term illness protection | Short-term income shocks & redundancy |
| Common use | Income stability for families & homeowners | Mortgage payment support |
Both can play a role for different situations — and for some people, having both as part of a protection plan can make sense. It all depends on personal circumstances.
Which Should You Think About?
Everyone’s situation is different, but here are general points to consider with Income Protection vs ASU:
You might want to explore Income Protection if:
- You want long-term illness or injury cover
- You prefer stable, predictable protection
- You want something that follows you when you change jobs
- Your employer sick-pay would leave a gap
- You want a policy that supports recovery for as long as needed
You might want to look into ASU if:
- You want redundancy/unemployment protection
- You want short-term financial support
- You have a mortgage and want cover linked to repayments
- You have pre-existing medical conditions and want simpler acceptance
- You need an option quickly or affordably
And some consumers consider both
One provides long-term illness cover; the other offers redundancy protection and short-term support.
Why Awareness Matters for Homeowners & Home Movers
Many people take out ASU or Income Protection when they first get a mortgage — but forget to review it when moving home.
This can mean:
- Cover doesn’t match the new mortgage amount
- The benefit amount is too low
- The term doesn’t reflect the new mortgage end date
- Redundancy cover is missing or outdated
Moving home is one of the best times to revisit your protection options, especially when your mortgage size, term, or employment type may have changed.
Talk to ME About Your Protection Requirements
Whether you want to explore Income Protection, understand ASU, or review your existing cover, Talk to ME.
We can help you understand your options clearly and check whether your protection still aligns with your mortgage, lifestyle and needs.
What does Income Protection cover that ASU doesn’t?
Income Protection covers long-term illness and injury and can pay out until the end of the policy. ASU includes unemployment cover but usually only pays out for short-term periods.
Does ASU cover redundancy?
Yes — ASU can include unemployment cover for involuntary redundancy, subject to terms. This is one of the main differences from Income Protection.
Why would someone choose ASU over Income Protection?
ASU can be useful for people who want redundancy protection, need short-term income support, or have pre-existing medical conditions that may affect traditional underwriting.
Does Income Protection cover redundancy?
No. Income Protection only covers illness or injury. Unemployment is not included.
Do either of these policies guarantee a payout?
No. both types of cover depend on eligibility, claim criteria, and policy terms.
This article is for information only and does not constitute personalised financial advice. Protection and insurance products depend on individual circumstances and eligibility. Consider speaking to a qualified adviser before making any decisions.
