JSA and Mortgage Protection Insurance

~Beanie~

I am currently claiming JSA after being made redundant from my last job and have been claiming since 1st April. I have a ortgage but luckily (?) I have protection insurance on it but have not yet actually received any money from them.

I have just received a letter from the JCP, asking for details of my policy and how much I am getting from it so that they can assess how much JSA I am entitled to.

Please tell me they are not going to deduct the amount I receive from my JSA??? The policy is to cover the mortgage repayment only and doesn't pay any extra for me to live off!!!

Does anyone know? I'm seriously worried now as I have bills and need to feed myself!!!

zappster1966

Each mortgage payment insurance policy is different & it depends what you've signed up to.

Some policies cover the mortgage only. Others cover the mortgage plus endowment. Others still simply pay a flat rate irrespective of what your mortgage actually is.

Some policies pay directly to the lender ; others to the customer. And some people have money left over from the mortgage insurance once they pay their mortgage.

That's why DWP has to ask further questions about your insurance & why they request to see your mortgage insurance policy to establish what it does (and does not) cover.

~Beanie~

Thanks... mine pays the mortgage plus 5% (or something like that) and that extra it pays is just enough to cover/pay the monthly premiums on the policy! If I don't pay the monthly premium, they will obviously not pay out.

I'll have to fill the forms out and see what they say.

Ooohh... I hate being unemployed.. its a flipping nightmare!!!