New Deal 'test trading' and Mortgage Insurance

walmer3

I'm not sure where to post this so apologies if it's in the wrong place. I've got three queries to do with New Deal/JSA/Insurance.

I'm currently at Stage 2 of New Deal for a new business start up, and will shortly start onto Stage 3 - Test Trading. As I understand it, Stage 3 means I don't take a salary and continue to live off the benefit for (I think) 13 weeks or so. JCP consider that I am not yet employed until I sign off Stage 3. I think the answer to this question is 'yes' but would it be possible for someone to please reassure me that in terms of my mortgage payment protection, the insurers will still (like JCP) consider me to be unemployed and therefore eligible for continuing my claim for mortgage payments?

My second query is the fact that I applied to enter the New Deal scheme early - I entered it shortly after my 13 week 'birthday' for claiming contribution based JSA. I currently still get paid the standard JSA amount, this changes when I enter Stage 3. However my eligibility for contribution based JSA runs out on 1st August. If by that time I'm on New Deal Stage 3 - do I still get assessed for income-based benefit or does the fact that I'm on the New Deal scheme mean that they don't go down the route of checking?

Lastly, my partner was made redundant too just last week, so he has started a claim for contribution based JSA. We don't have significant savings as most of it has gone into the business - although he will be eligible for approx £7k payment in lieu of notice and statutory redundancy so I don't know how that might affect income based assessment for either him or me?

Thanks in advance for any comments or help you're able to provide. It's all a mystery to me!