April UK Accident, Sickness & Hospitalisation Plan
April UK’s new ASU plan provides up to £2,500 monthly benefit (minimum £250 a month) if the customer cannot work because of sickness or accident (or £300 a month for non-working partners). Unemployment cover can be added at extra cost. Customers must be aged 18 to 59 and resident in the UK, Isle of Man or Channel Islands.
April says premiums are level, in order to meet people’s concerns about rising premiums and future affordability. So, there are no age, occupation or hazardous pursuit ratings or exclusions and customers can insure up to 60% of their taxable earnings.
In terms of cover, it is standard ASU (accident, sickness and unemployment) fare, but also pays out on being hospitalised for more than 48 hours. Then the plan pays 10% of the monthly benefit each full day, up to 30 days in any policy year. A range of deferred and benefit periods is available and the benefit period can be one or two years (but unemployment cover is always one year), with deferred periods of 14 days, 30 days, 13 weeks or 26 weeks being offered.
There is a 90 day initial sickness exclusion and other exclusions are fairly typical for ASU cover.
In addition, the plan offers access to Best Doctors and to the April UK discount portal. The latter offers discounts at over 20,000 sites including major high street chains.
A customer wanting £1,000 a month one year cover with a 30 day deferred period would pay £26.90 for accident and sickness cover or £42.90 with unemployment cover too.
Comment: ASU cover provides a simpler and possibly cheaper alternative to ‘full’ long term income protection. Perhaps because of their simple nature, most ASU plans offer very similar benefits, but April UK has at least tried to be a bit different.
Its new plan includes a useful hospitalisation benefit, and a choice of deferred period and benefit period. The plan also includes access to Best Doctors and April UK’ discount club – an add-on that appears to be growing in popularity generally.
ASU’s shortfalls can still be substantial (its high hurdle for musculoskeletal claims for example), but a customer could still usefully have a plan such as this alongside a long term IP plan with a one or two year deferred period.
Plus points: Simple ASU cover that includes hospitalisation benefit; A choice of deferred and benefit periods; Includes access to Best Doctors and April’s discount portal.
Not so plus points: Some innovation, but little that is really new; Full IP cover should provide better cover overall; The maximum benefit period is just two years
Website: www.april-uk.com
Rating (max 10): Innovation: 7.5. Overall: 7.5. Silver
Tags: April UK; ASU