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ASU Protection
Accident, sickness and
unemployment insurance (ASU) will pay out a regular monthly benefit,
typically for a maximum of one year. You choose the level of
potential benefit you require at outset and this will determine the
monthly premium you pay. Trying to work out how long your savings
would last for if you were unable to work as a result of being made
redundant or suffering a health setback can be a pretty frightening
exercise. In the current era of sky-high house prices many people
would find that any spare cash was swallowed up by the mortgage
payments alone within only a few months.
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Those who assume that the so-called “State
safety net” will bail them out in their hour of need may find that
they are in for an unpleasant surprise - most homeowners would not
be eligible for any State assistance with their mortgage by virtue
of the fact that they have savings totalling over £8,000 or a
full-time working partner. Even the minority who do qualify
for State support will only get help with interest (not capital)
payments on mortgages of up to £100,000. Furthermore, this will not
be available for the first nine months for those who started their
mortgages after October 1995.
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