Frequently Asked Questions

accident sickness and unemployment cover

Q. Why do I need Protection against Accident, Sickness, & Redundancy or Business failure (ASR)?

A. For how long could you pay all your monthly bills with no income?

Q. ? I get paid for six months if I am ill.  Would your policy pay out whilst I’m still being paid from work ?

A. ? Our policy will pay up to 125% of the sum of your Mortgage, Rent, Secured Loan, Life Assurance, Home Insurance, Motor Insurance, Council Tax, Electricity, Gas, Heating Oil, Water, Unsecured Loan(s), Hire Purchase, Lease or Leasing, Lease Purchase, Credit or Store Cards, IVA or DMP,  for up to 12 months, even if you are still being paid from work.

Q. ? If I was made redundant, I would only get one month’s notice.   I need a policy that would start to pay my mortgage at the end of one month if I were made redundant.  Do you have this available?

A. ? Yes we do.  We call it back to day one cover. As soon as you have been off work for 30 days including weekends and bank holidays the first monthly benefit payment is triggered. It is payable on day 31 of your unemployment and covers right back to day one of that unemployment.

Q. ? How do I get instant cover?

A. ? Submit an instant online application - you can be on cover within the hour - and enjoy a months free cover as well.

Q. ? Why do I need protection against Accident, Sickness and Redundancy?  In any event, the Department for Work & Pensions (DWP) will pay my mortgage if I am out of work, surely?

A. ? By the time you receive help from the government, your lender could already be instigating repossession proceedings against you.

Q. ? I am self-employed.  No-one can make me redundant!   Can I still have ASR Protection?

A. ? Yes we can still provide comprehensive protection for you if you are self-employed. Instead of protection against redundancy, we give you protection against “Business failure”.  We call it ”Cessation of Business” cover.  You can’t be made redundant, true, but you may have to cease to trade for a whole variety of reasons. Markets change, premises can be compulsorily purchased.  You may have bad health.  Business may take a dive.  Unlike some other insurers, when business starts to decline through no fault of yours, we don’t insist that you sit around waiting for someone to bankrupt you.  We offer a route to avoid that, thus allowing you to start again, still with a clean slate.  If you inform HM Revenue & Customs that you have ceased to trade, and sign on at the DWP, as someone actively seeking work, we will treat you as a if you were an employed person who has been made redundant.  Remember too, that even self-employed people can have accidents and can become sick.  We can provide an ASR benefit of up to 50% of your net profit.

Q. ? I am just set up my own business, so don’t yet have accounts showing net profit, but I need ASR cover.  Can you help?

A. ? Yes, we will accept your Accountant’s projections for the first year, and subject to seeing the first year’s actual figures and the second year’s projections, will do the same for the second year.

Q. ? I am in a high-risk employment category, an oilrig worker, will I have to pay extra premium?

A. ? No, our rates are fixed regardless of occupation.  Deep sea divers, astronauts, oil rig workers, welders, safflowers, steel erectors, steeplejacks, surgeons, we will insure you whatever your occupation at no extra charge.  GUARANTEED.

Q. ? I have been ill recently.  Can I still have Accident and Sickness cover?

A. ? Yes of course you can still have cover.  Any reoccurrence of the same illness may be excluded however. Your Redundancy cover is of course unaffected.

Q. ? What happens if after claiming I go back to work and become ill again or I am made redundant again?

A. ? You can make as many claims on our policies as you need to. After a claim for redundancy or cessation of Business, you must return to work and paying premiums for at least 6 months before you are eligible to claim again.  After an accident or sickness claim, you must be back at work for six month before you can claim for the same or a related condition, but you only need to be back at work for one month before you could claim for a different condition.

Q. ? Can benefits payable under the policy be made straight to someone else, my Mortgage Lender for example?

A. ? No, benefits are payable to you, but what you do with them is up to you.

Q. ? Can I be insured

against Redundancy only?

A. ? Yes you can have Redundancy Only cover. You must be aware however that if you become ill or have an accident while we are paying your redundancy claim, you will cease to be eligible to receive policy benefits.

Q. ? What happens if I am made redundant and then I go sick or have an accident?

A. ? Cover would continue as normal if you have full ASR cover.  If you have Redundancy Only cover, you need to be aware that no if you become ill or have an accident while we are paying your redundancy claim, you will cease to be eligible to receive policy benefits. The extra cost of upgrading from Redundancy Only to full ASR is a not great.

Q. ? Do I have to be in Hospital to claim the Sickness or Accident benefits?

A. ? No, you just need to be signed off work by your G.P.

Q. ? My skills are in demand. If I were made redundant, I wouldn’t be out of work for long.  If I were sick or broke my leg for example, then that is different; I could be off work for some time.  Do you have a flexible policy to cover this?

A. ? We will be pleased to quote you for different cover packages, so that you may select the one that is best for you.

Q. ? My skills are in demand. If I were made redundant, I wouldn’t be out of work for long.  If I were sick or broke my leg then that is different.  Do you have a flexible policy to cover this?

A. ? We will be pleased to quote you for different cover packages, so that you may select the one that is best for you.

Q. ? Are claim benefits taxable? 

A. ? As of November 2011, and as they are payable for only up to 12 months, no they are not.

Q.  I hear a lot about ASR policies not paying out.  Under what circumstances would you refuse a claim?

A. ? There are three circumstances when we would refuse to pay a claim:

  • Cover has been cancelled because premiums are unpaid.
  • Claim is for a risk that is not insured, like claiming for dismissal through failure to reach agreed performance standards.
  • Non-disclosure of  “material fact” that would have affected our underwriting decision.  If a Client suffers from Epilepsy, and declares this on their application, our Certificate of Insurance would carry the Exclusion “Any claim caused or exacerbated by Epilepsy”   if the client submitted an application without declaring their Epilepsy, our certificate would be issued with no exclusion.  When they later submit a claim for an accident caused by an epileptic fit, we will routinely ask their GP when was the first time that their patient consulted them for that condition.  If that date pre-dates the application, then we are looking at non-disclosure. Nondisclosure is always treated in exactly the same way - we seek to place    both parties to the insurance contract - the client and the insurer -in exactly the same position they would have occupied if for this closure had been made.  That position is clearly that epilepsy was a “pre-existing condition“, and would have been excluded so this claim will be refused, and an amended certificate issued with the correct exclusion. 

Q. ? Is it expensive to insure against Accident, Sickness or Redundancy?

A. ? How much is your house worth to you and your family?  More than the cost of a DMS policy?  It most certainly is.  Our Short Term Income Protection costs less than you think. Our best selling policy providing say ?1,000 per month of Redundancy Benefit for a 12 month period costs as little as ?40.17 per month.  Including protection against Sickness and Accident would increase this by only ?6.47 per month including IPT. If you were unable to work through sickness, accident or redundancy, we would pay your mortgage for you from the end of your first month’s incapacity.  On any one claim, we could be paying you up to ?12,000.

Choose a shorter benefit payment period of say 6 months, and/or opt for a 30 or 60 day exclusion – payable on day 61 and 91 respectively and the cost falls even further.  Just complete our Urgent Quote Request Form.  If you do this between 9.00 am and 9.00 pm on any day that is not a Bank holiday, we will e-mail you back with the quote within the hour.

Payment Cover is a trading style of DMS Agency Services Ltd trading as DMS Security Plans which has been providing Accident, Sickness and Unemployment cover to Financial Advisers and members of the public for many years.

DMS Agency Services Ltd is authorised and regulated by the Financial Services Authority.


Category: Accident

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