Unemployment Cover.

With the spectre of redundancy looming for thousands of people, insurance to cover credit commitments has been brought into sharp focus.

If you fear for your job, however, you should still consider some form of insurance to meet your liabilities should the worst happen.

ASU (or Accident Sickness and Unemployment) cover will normally provide cover for up to 12 months only.

A much more comprehensive alternative to an ASU policy is to take out a permanent health insurance (PHI) policy and add unemployment cover to it. It pays a regular income designed to protect your standard of living if you suffer long-term sickness or injury or are unemployed. Benefits usually start after an initial waiting period of 4, 13, 26 or 52 weeks and it is payable until you return to work, die or the policy term expires - whichever happens first.

Another option, which is growing in popularity, is adding Unemployment cover to existing life cover arrangements. Only a few companies offer this facility at present.

If you are self-employed, over 65 or have been with your employer for less than six months, check if the policies you're looking at will cover you at all. Many won't. If you sign up to an ASU policy, be aware which illnesses are actually covered. Two of the most common forms of workplace illness - back pain and stress - are usually excluded from ASU policies.

With Unemployment cover, there is always an initial exclusion period where you will need to wait a number of months after you have bought the policy before you can make a claim. This is done to stop people who know they are about to lose their job insuring themselves. The waiting time is typically between two and three months from the date the policy starts. This is totally separate from the chosen Deferred Period.

For a no obligation insurance quote simply give one of our advisers a call, free, on 08000 11 20 21. Or alternatively, please browse our site for more information on the various types of insurance we can provide. If what you want is not listed above, please call our friendly advisers who can guide you through the complicated world of Insurance.