Another form of income protection, but one that does not cover any form of sickness, injury or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU).
Also known as Redundancy cover, this is insurance cover arranged by the borrower to protect against inability to meet mortgage payments. There may be exclusions under the policy, such as dismissal following professional misconduct and any act of voluntary redundancy.