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ASU Insurance - Ditch or Keep Umbrella Dilemma

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    ASU Insurance - Ditch or Keep Umbrella Dilemma

    Although umbrella contracting at the mo (and have been for 2 years), I might go the dark side (permanent) again some point in the future...

    I've got an old ASU (Accident Sickness Unemployment) insurance policy hanging over which I took out in my perm days.
    For a perm employee, upon redundancy, this effectively covers a year's mortgage payments (oodles'n'oddles of cash) for £40/month.

    This ASU policy is currently useless for me (as it would be for any umbrella or Ltd. contractor) and any claim would apparently open up the possibility of a tax investigation

    So simple, ditch it right ?

    Well, I've checked with the ASU company and they allow the policy to be transferred instantly between companies as long as there is 'continuous employment'. This means that I could go Umbrella -> Perm, get made redundant after one week and claim.

    Worth keeping (a £40/month hit) just in case I decide to perm ?
    Ditching means a re-application which I suspect will be rejected whilst umbrella employed. A re-application also carries a '6 months with current employer, no claim in first 4 months' clause .. a 10 month potential lock out if I ditch.
    Last edited by administrator; 7 March 2011, 16:17. Reason: link removed
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