Does redundancy insurance count as an income (sorry if stoopid q)

[Deleted User]

Hi - I can claim contributions based JSA for 6 months post redundancy. This should allow me to access a redundancy insurance policy paying out £2k pcm. If I receive this insurance payout, I assume I cannot then claim income based JSA after the 6 months ends? I know there are other criteria for income based JSA but assuming i meet these, will the insurance policy void my claim?

The Catch 22 is that without the JSA I can't get the payout which runs for 12 months, so after the 6 month initial JSA ends, I may not be able to get the insurnace policy - which makes me eligable for the other JSA - therefore eligable for the insurance policy - which makes me in-eligable for JSA - therefore the insurance policy - and round and round it goes.

I should have a job by then but I'm thinking ahead and wondering what the answer is, if any.

colin13

that sound complicated, i read it and had a thought,,, then re read it and had a diffrnt thought:) no dought some 1 will come along and give u the correct answer soon:)

mirabelle

To activate your claim with the Insurance Company you sign on for Contribution Based allowance.

When after 6 months your Contribution Based allowances cease, you then move on to just getting your National Insurance Contribution paid by signing on every two weeks and this serves as proof to your Insurance Company that you are looking for work.

You sign a AB1 Form when you sign on which you then send off to the Insurance Company once a fortnight or monthly. It depends on when you want them to pay you.

You don't have to be on Income Based Allowance to get your Insurance pay out, you just have to send them the form AB1 which shows you are still looking for work.

I know this is the procedure with Mortgage protection insurance as it happened to us earlier this year. But next time you go in to sign on, please check. Hope this helps

[Deleted User]

Thats great, thanks so much.

So I dont need JSA to get the ABI1 form?! Great. I've not signed on before so I'm not really clear on the process for getting that form. The Job centre and the helpline didnt seem to know either. I got 4 different answers to 4 different phonecalls, and it made me start to panic..

Thanks for your advice.

mirabelle

Forgot to say, you take your Insurance details with you when you go to sign on as these have to go on the AB1 form that the Job Centre gives you and which the Job Centre interviewer signs and you sign before sending off.

I remember thinking when it happened to us what a miserable time it was, but looking back now I wished we had enjoyed the time off work instead of worrying. Try to do the same.